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Craig Paton & Peter A Walker

Yousaf: Just transition away from oil and gas is a moral imperative

The First Minister has said the country has a “moral imperative” to seek a just transition away from fossil fuels.

Speaking at the All-Energy Conference in Glasgow on Wednesday, Humza Yousaf stressed the need to move away from oil and gas in a way that limits the economic damage caused to the industry and to the north east of Scotland; where it accounts for a significant number of jobs.

He drew a parallel with the Thatcher government’s move away from coal and steel in the 1980s, which caused a spike in unemployment in mining communities.

“We are committed to that just transition, not just as a government policy, but frankly as a moral imperative,” he said. “We’re enthusiastic for it as an economic opportunity and we see making progress towards net-zero as one of the defining missions of the government.”

He went on to say his government would “rise to the challenge” of decarbonisation.

“Decarbonisation on the pace and scale that we need isn’t something that can be easily done, but we’re committed to rising to that challenge, to working with others, whether it’s local government, whether it’s UK Government, whether it’s partners here, whether it’s all of you here in this room.

“Through all the challenges we face, and the many real financial constraints that we’re under as a government, I can promise you that there is absolutely no lack of commitment from me as the First Minister, or indeed from the government that I lead.”

The Scottish Government has failed to hit seven of its 11 environmental targets to date, according to the Climate Change Committee, while Audit Scotland has said it is not clear what action is being taken to meet the targets.

During his speech, Yousaf said his government will allocate £7m to 32 different green hydrogen projects, as well as calling for action from the UK Government.

He pushed for more subsidies for renewable energy to increase investment, along with a call for UK ministers to address the flaws in the system that transmits energy out of Scotland, speeding up development of the Acorn carbon capture facility in Aberdeen, and at least matching the £500m just transition fund offered by the Scottish Government.

Separately, climate protesters have gathered outside Norwegian oil giant Equinor’s London offices to oppose the company’s plans to develop the Rosebank oil and gas field.

Rosebank, which lies west of the Shetland Islands, is one of the largest such fields in the North Atlantic, capable of producing up to 500 million barrels of oil.

The International Energy Agency has previously said there must be no new investment in oil and gas if the world is to become net zero by 2050, while the Intergovernmental Panel on Climate Change said emissions from existing fossil fuel infrastructure are already set to push global temperatures beyond safe limits.

Campaigners from Stop Rosebank, Greenpeace, Fossil Free London and Parents For Future arrived at Equinor’s central London headquarters on Wednesday morning to try to persuade Equinor to abandon its plans.

Equinor said Rosebank will have a lower carbon footprint than other fossil fuel projects on the UK Continental Shelf, but its calculations relate only to its operations and exclude emissions from burning the fuel itself.

The company also said that investing in oil and gas will help the UK’s energy security and it is unhelpful for Western democracies to stop developing their resources.

An international delegation of climate protesters plans to “challenge” Equinor at its AGM in Stavanger in Norway on Wednesday afternoon, a spokesman for campaign group Uplift said.

As well as Rosebank, campaigners are protesting against Equinor’s fossil fuel expansion plans in Canada, Brazil and Argentina.

Scottish Stop Rosebank campaigner Lauren MacDonald, who is attending Equinor’s AGM, said: “Equinor’s oil projects in the UK and in the rest of the world threaten our common future and, as an international community, we cannot stand by and watch that happen.

“I am joined in Stavanger by anti-Equinor campaigners from Canada, Brazil and Argentina to demand that Norway, a supposed climate leader, stop its state-owned oil company from developing all new fossil fuel infrastructure including Rosebank in the UK.

“Norway needs to set an example to the rest of the world and stop profiting off oil and gas during a climate emergency.”

The plans to develop Rosebank must be approved by the UK Government and a decision is expected soon.

If it goes ahead, the Government will give Equinor a tax break of £3.75bn, meaning the company will only have to invest £350m.

Campaigners, along with shadow climate change secretary Ed Miliband, say that up to 80% of the oil and gas produced will be sold abroad so Rosebank will only be of limited economic value to the UK.

Hundreds of scientists and academics have also written to Prime Minister Rishi Sunak urging him to block the development, saying it will undermine the UK’s attempts to be a climate leader.

An Equinor spokesman said it is estimated it will bring £26.8bn to the UK through tax payments and investment.

“Rosebank is a project that can help counteract the decline in domestic UK oil and gas production,“ read a statement.

“As long as there is a need for oil and gas, we think it is important that we continue to invest in fields that can contribute to energy security with a low carbon footprint while creating jobs and value for society.

“The project will be developed in line with the North Sea Transition Deal, UK net zero targets and Equinor net zero ambitions.”

Tessa Khan, executive director of Uplift, said: “The Rosebank oil field will do nothing to secure Britain’s energy supply or lower household bills, but it will blow through our carbon budget all while costing the taxpayer £3.75bn, thanks to extremely generous government subsidies.

“This government must join the thousands of people, represented by these campaigners at Equinor’s AGM, that are saying no to Equinor’s profiteering at our expense.”

Sunak has said it makes “absolutely no sense to not invest” in resources in the UK, as he faced questions over plans to develop the oil and gas field.

Green Party MP Caroline Lucas told Prime Minister’s Questions: “The Prime Minister has previously declared, and I quote, my daughter is the climate change champion in our house.

“I wonder if he’s asked her what she thinks about Rosebank, the biggest undeveloped oilfield in the North Sea, which would blow climate targets, create more emissions than 28 of world’s poorest countries combined, involve the obscene transfer of £4bn of taxpayers’ money to a Norwegian energy firm Equinor and do nothing for energy security since the vast majority of the oil will be exported.

“If he gives it the green light, will he be able to look his daughter in the eye and honestly say that he has done everything in his power to give her and all other young people a liveable future?”

Sunak replied: “As the independent committee for climate change has acknowledged, we will need fossil fuels for the next few decades as we transition to a greener future and during that period it makes absolutely no sense to not invest in the resources we have here at home, to import foreign fossil fuels, not create jobs here and import them at twice the carbon emissions as our local resources.

“It is an economically illiterate policy, but that’s what you’d expect from the Green Party.”

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