A Scottish court has overturned the UK Government’s approvals for two North Sea oil and gas projects, marking a victory for environmental groups and necessitating a fresh review by the government.
In a landmark decision, the court of session in Edinburgh ruled that the UK Government’s approval of Shell and Equinor’s North Sea oil and gas projects was unlawful, reported Reuters.
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The court found that the decision-making process failed to account for the downstream emissions associated with the use of the extracted oil and gas.
In a written ruling, Judge Andrew Stewart said: “The public interest in authorities acting lawfully and the private interest of members of the public in climate change outweigh the private interest of the developers.”
The ruling allows Shell, Equinor and Ithaca Energy to continue work on the Jackdaw and Rosebank projects, respectively.
However, they are barred from extracting oil and gas until the government reassesses the approvals.
The government has indicated that it is revising environmental guidelines and the companies may reapply under the new regulations.
A Shell spokesperson said: “Swift action is needed from the government so that we and other North Sea operators can make decisions about vital UK energy infrastructure.”
Equinor said it is pleased with the outcome “which allows us to continue with progressing the Rosebank project while we await new consents”.
The court’s decision follows a Supreme Court ruling mandating that planning authorities consider the full climate impact of fossil fuel projects, including the burning of extracted fuels.
In response to this precedent, the UK Government chose not to contest the legal challenges brought by Greenpeace and Uplift.
Grantham Research Institute on Climate Change senior policy fellow Catherine Higham said: “While the proponents could still submit a new application, the implications of the project for the UK’s energy transition would then be subject to enhanced public scrutiny.”
Shell is developing the Jackdaw gas field, which expected to supply fuel for 1.4 million homes. Equinor and Ithaca Energy are working on the Rosebank oil and gas field.
All three companies stress that the projects are crucial to Britain’s energy security, with delays causing significant financial losses and job cuts.
A spokesperson for the Department for Energy Security and Net Zero said: “Our priority is to deliver a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations, which drives towards our clean energy future of energy security, lower bills, and good, long-term jobs.”
The court’s ruling comes amidst discussions by Finance Minister Rachel Reeves on economic growth, highlighting the need to reduce regulatory and legal impediments to investment.
