On Wednesday, the energy secretary, Miatta Fahnbulleh, gave the go-ahead for gas production to begin at the Jackdaw gasfield in the North Sea. This has been the subject of fierce debate for many years, with strong views on both sides. I want to explain what the decision means and how it fits with Britain’s climate commitments.
At a time of acute global instability, it makes sense to responsibly use our resources here at home. Gas from this field will begin heating our homes and powering our businesses this winter. In the longer term, it will significantly strengthen our energy security by increasing domestic gas production by about 6% and support the UK’s energy supply for more than a decade. Wednesday’s decision will also protect hundreds of jobs in Scotland and add almost £3bn to the UK economy over the lifetime of the project.
There has been much speculation about what this announcement means for Britain’s commitment to addressing the climate crisis. I want to be clear that our determination is unwavering. The simple truth is that even as we pursue our ambitious target of net zero by 2050, we will need oil and gas for years to come as a bridge to that clean-energy future. And imported gas has a higher carbon footprint than gas produced at home. The transition to net zero is a process, not a moment. I want Britain to make that transition on our terms: reducing our dependence on foreign fossil fuels, supporting good jobs and growing our economy so we can help people with the cost of living.
I know this news will be warmly welcomed in Aberdeen and by oil and gas workers across Scotland. Their jobs support families, businesses and entire communities. Yet, like many others, their industry has suffered from deindustrialisation, with too little thought given by politicians to the places left behind. I will not be so careless with people’s lives. Our oil and gas workers have powered our nation for decades, and they will continue to play a key role for decades to come. Last week, I promised the Scottish people that we would reindustrialise their nation. I believe the transition to clean energy represents the best chance we will ever get of making that happen. I am determined to ensure that the next generation of energy jobs is created across Scotland and all nations of the UK.
That is why, alongside the decision on Jackdaw, we are establishing an energy wealth fund – something that, frankly, should have happened more than 40 years ago. It will begin with an initial £2bn and allow us to convert future North Sea oil and gas tax revenues into clean-energy programmes across the country. This investment in renewable energy will enable us to substantially delink gas and electricity prices by the end of this parliament and bring down bills in the long term.
This government is taking a pragmatic approach that supports our oil and gas industry today, while driving the growth of the clean-energy industries of tomorrow. We are also making a sustained effort to bring energy costs down over the next decade and in line with those of our European neighbours. I know, however, that people need breathing space right now. I will do everything I can to ease the pressure on household budgets in the short term. One of my first acts as prime minister was to remove VAT from electricity bills, and households have seen that reduction in their bills this month. I have now asked the chancellor and the energy secretary to look at removing standing charges from gas bills at the earliest opportunity.
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I will ensure the government continues to take action to reduce both gas bills and electricity bills as part of our fundamental changes to the energy system.
The manifesto on which Labour was elected committed us to issuing no new oil or gas licences to explore new fields in the North Sea and to reaching net zero by 2050. I stand by both promises. Britain has just emerged from its hottest summer on record, during which we had nurses collapsing on hospital wards, bus drivers working in intolerable conditions and families losing everything to wildfires. More extreme weather is forecast in the months ahead. The climate crisis is no distant threat. It is here, on our doorstep, affecting people’s lives and livelihoods. I am personally committed to confronting it, and I will not abandon the responsibility we have to future generations.
There are two ways we can transition to clean energy. One way, the traditional Whitehall way, is to make people carry the burden of change while others take the rewards. The other is to make the transition work for people by creating good jobs, backing British industry, keeping bills as low as possible, strengthening our energy security and giving communities a greater say over their future. This government chooses the second path.
I want Britain to believe in itself again. We can have secure energy, strong industries and a cleaner future. And we can make net zero mean jobs, opportunity and prosperity. That is how we bring back hope.
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Andy Burnham is prime minister of the United Kingdom
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