Sir Keir Starmer has promised that, the Labour party would put an end to new North Sea oil and gas development, and thereby assist locals to make money off clean energy initiatives. In a speech at Edinburgh, the Labour leader made a commitment to “cut bills, create jobs, and guarantee energy security.”
He added that, the aforementioned publicly-owned green energy firm would have its headquarters in Scotland. Also, the oil industry players have piled pressure on Sir Keir on the scope and speed of reform.
However, the party has come under criticisms from environmental activists for backing away from a vow to devote £28 billion annually in green businesses. If Labour wins the next election, planning regulations in England, that virtually forbids the installation of new onshore wind farms would be repealed.
According to UK’s trade group, Offshore Energies, an industry that supports 200,000 UK employment, including 90,000 in Scotland, has undergone a seismic change with Labour’s announcement that it would “not grant licences to explore new fields” in the North Sea.
However, the party maintains that, it would honor any licenses, that have been in effect since the subsequent election. West of Shetland, this is anticipated to include the contentious new Rosebank development.
“Labour will deliver lower bills, good jobs, and energy security for Scotland and the whole UK, as Britain leads the world in the fight against climate change.”
Sir Keir Starmer, Labour Party Leader.
Moreover, increased incentives for regions to participate in brand-new renewable energy projects would be one of Labour’s measures. According to Labour’s strategies, GB Energy, the new publicly-owned company would be located in Scotland.
GB Energy would supervise the distribution of project proceeds to local governments. The councils might then use that money to lower council tax, fund the improvement of public services, or simply give energy bill rebates.
According to Labour, GB Energy may end up giving local governments up to £600 million annually to invest in green infrastructure, and an additional £400 million yearly in low-interest loans for community initiatives.
The goal of these community loans is to make sure that, small projects may make use of GB Energy’s knowledge while also bringing in revenue for the neighborhood.
However, David Whitehouse, chief executive of Offshore Energy UK, warned that, Labour’s proposals to reduce its reliance on North Sea oil and gas “would create a cliff edge,” increasing the likelihood of an energy deficit and discouraging investment.
180 of the 283 operating oil and gas fields in the North Sea, according to Mr. Whitehouse, are slated for closure by 2030, therefore, additional licenses are “essential” to prevent output from plummeting and “exposing the UK and its skilled workforce.”
While praising Labour’s most recent proposals, Friends of the Earth’s Head of Science, Policy and Research, Mike Childs, cautioned that “there can be no backsliding on pledges to stop new oil and gas extraction and invest in green growth.” The projected Rosebank development in the North Atlantic is strongly opposed by environmental organizations.
According to the state-owned oil corporation, Equinor in Norway, Rosebank’s maximum daily output might be close to 70,000 barrels of oil.
In the past week, Sir Keir held confidential conversations with important figures in the energy sector. He has also previously directly assured Equinor that a Labour government would not withdraw any licenses.
Instead, the party claims that its main goal is to provide “cheaper zero carbon power by 2030” and that part of its “mission” is to encourage and draw in investment “in the UK’s industrial heartlands”.
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