UK oil and gas sector faces more legal challenges after Scottish court ruling

UK oil and gas sector faces more legal challenges after Scottish court ruling

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Legal challenges against two major oil and gas projects will be allowed to go ahead after a ruling from Scotland’s highest civil court, raising further doubts over the future of fossil fuel production in the UK.  

The country’s Court of Session has set a hearing date of November 12 for the two judicial review cases brought by climate campaign groups Uplift and Greenpeace against the Rosebank and Jackdaw developments in the North Sea. 

It raises the prospect that the projects will need to reapply for planning permission from a Labour government which is more hostile than its Tory predecessor towards domestic fossil fuel development.

The Rosebank and Jackdaw projects are being developed respectively by Equinor with its partner Ithaca Energy, and Shell. Equinor says Rosebank would account for about 7 per cent of the UK’s oil production, while Shell says Jackdaw would produce enough gas to heat the equivalent of about 1.4mn UK homes. 

They were granted development consent in 2023 and 2022 under the former Conservative government, which was keen to boost domestic oil and gas production. 

However, campaigners argue the government should have taken into account the emissions generated by consumers burning oil and gas from the fields, for example in cars, boilers and power stations. These are known as Scope 3 emissions. 

Last month, the government said it would not challenge the two judicial review applications. 

It followed a landmark legal ruling in June when the UK’s Supreme Court found that a local council in England should have considered Scope 3 emissions when it granted planning permission to an oil drilling project in Horse Hill, Surrey. 

That was followed by a decision this month when the High Court in London ruled against planning permission for a metallurgical coal mine in West Cumbria, north-west England, also on the basis of its Scope 3 emissions not being taken into account. 

Since taking office in July, the Labour government has followed through on its manifesto pledges to try to move away from oil and gas in favour of renewable energy.

It has increased the tax rate on oil and gas drillers, and plans to stop issuing new oil and gas exploration licences for new fields. It has said it will not revoke existing licences, however, and is consulting on new environmental guidance for the industry.

A spokesperson for Shell said that no decision had been taken on the substance of the case, and it would argue in November that “existing consents to develop Jackdaw should remain in place”. 

Shell added: “Jackdaw is a vital project for UK energy security that is already well under way.”

A spokesman for Equinor said it did not comment on ongoing litigation, adding the Rosebank project would bring investment, jobs and energy security and was “vital to the UK”. 

Tessa Khan, executive director at climate campaign group Uplift, said it was “a relief” that the arguments against Rosebank would “not get a fair hearing in court”. 

Ithaca Energy did not comment.