The Prime Minister is facing a growing internal backlash from Labour MPs after Treasury sources indicated Rachel Reeves is likely to give her backing for the proposed Rosebank development (Image: PA/Henry Nicholls)
WESTMINSTER politicians are reportedly at “breaking point” with Keir Starmer over the potential of approving a new oil and gas field in the North Sea.
The Prime Minister is facing a growing internal backlash from Labour MPs after Treasury sources indicated Rachel Reeves is likely to give her backing for the proposed Rosebank development.
MPs have reportedly called for Starmer to reiterate his own commitments to no further oil and gas licences.
Last week a judge ruled the Rosebank development, which was given the green light by the previous Tory administration, as unlawful following a legal challenge brought by Greenpeace and Uplift.
Previously the energy secretary, Ed Miliband, described the licence issued to Rosebank as “climate vandalism”.
Reeves is reportedly supportive of a new application for environmental consent for the North Sea development, despite Labour’s manifesto promising not to issue any new exploration licences.
MPs who are concerned about the climate emergency are reported to be likely to make their appeals directly to Keir Starmer about the importance of being seen to stand by the party’s manifesto commitment of no new oil and gas licences.
A court has ruled that consent for two new Scottish oil and gas fields was granted unlawfully and their owners must seek fresh approval from the UK government before drilling can begin.
The written judgement on the Rosebank and Jackdaw fields came after a case brought by environmental campaigners, Uplift and Greenpeace, at the Court of Session in Edinburgh.
In his judgement, Lord Ericht said a more detailed assessment of the fields’ environmental impact was required, taking into account the effect on the climate of burning any fossil fuels extracted.
He said work on both fields could continue while the new information was gathered but no oil and gas could be extracted unless fresh approval was granted.
Permission for the Rosebank oil development, 80 miles west of Shetland in the North Atlantic, was granted in autumn 2023.
In a 57-page judgement, Lord Ericht wrote that there was a public interest in having the decision “remade on a lawful basis” because of the effects of climate change – which he said outweighed the interests of the developers.
Activists hold a white sign reading “Rosebank will kill us” on September, 27, 2023 in London, United Kingdom. (Photo: Mike Kemp/In Pictures via Getty Images)
Oceana U.K.’s leader called the decision “a massive win for campaigners and another step towards… a cleaner, greener future for our seas, planet, and climate.”
Climate campaigners celebrated Thursday after the United Kingdom’s new Labour government announced it will not legally defend decisions to allow controversial offshore drilling in a pair of areas in the North Sea.
The two sites are Shell’s Jackdaw gas field and the Rosebank oil field, owned by Equinor and Ithaca Energy. Both projects have been loudly criticized by international green groups as well as U.K. opponents.
“This is amazing news and a BIG WIN for the climate. The government must now properly support affected workers and prioritize investment in green jobs,” declared Greenpeace U.K., which along with the group Uplift had demanded judicial reviews.
The approvals for both North Sea sites occurred under Conservative rule—in 2022 for Jackdaw and last year for Rosebank, the country’s biggest untapped oil field. Voters handed control of the government back to the Labour Party in May.
Then, as The Guardian detailed, “in June, the cases against the oil and gas fields received a boost when the Supreme Court ruled in a separate case that ‘scope 3’ emissions—that is, the burning of fossil fuels rather than just the building of the infrastructure to do so—should be taken into account when approving projects.”
“Now we need to see a just transition plan for workers and communities across the U.K. and an end extraction in the North Sea for good!”
The U.K. Department for Energy Security and Net Zero, led by Secretary Ed Miliband, cited the “landmark” Supreme Court ruling in a Thursday statement that highlighted the government’s decision not to defend the approvals “will save the taxpayer money” and “this litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn.”
“Oil and gas production in the North Sea will be a key component of the U.K. energy landscape for decades to come as it transitions to our clean energy future in a way that protects jobs,” the department claimed, while also pledging to “consult later this year on the implementation of its manifesto position not to issue new oil and gas licenses to explore new fields.”
Welcoming the U.K. government’s acceptance of the recent high court ruling, Uplift founder and executive director Tessa Khan said on social media that “the immediate consequence… is that the Scottish Court of Session is very likely to quash the decision approving Rosebank, although we’re likely to have to wait a while before that’s confirmed.”
“If Equinor and Ithaca Energy decide they still want to press ahead with developing the field,” Khan explained, “then the next step will be for them to submit a new environmental statement to the [government] and regulator… that includes the scope 3 emissions from the field.”
“If you need reminding, those emissions are massive: the same as 56 coal-fired power plants running for a year or the annual emissions of the world’s 28 poorest countries,” she added. “If Equinor and Ithaca try to push Rosebank through again, the U.K. [government] must reject it.”
The government has made the right decision not to waste time and money trying to defend the indefensible.
The oil and gas industry will fight back. But the days where they can cause such devastating harm while everyone else pays the price are over.
Greenpeace similarly stressed that “Rosebank and Jackdaw would generate a vast amount of emissions while doing nothing to lower energy bills,” and “the only real winners from giving them the greenlight would be greedy oil giants Shell and Equinor.”
“To lower bills, improve people’s health, upgrade our economy,” the group argued, the government must: increase renewable energy; better insulate homes; and boost support for green jobs.
Celebrations over the government’s decision and calls for further action weren’t limited to the groups behind the legal challenges.
Oceana U.K. executive director praised the “incredible work” by Greenpeace and Uplift, and called the government dropping its defense “a massive win for campaigners and another step towards… a cleaner, greener future for our seas, planet, and climate.”
“There is no defending more fossil fuel extraction,” the organization said. “Now we need to see a just transition plan for workers and communities across the U.K. and an end extraction in the North Sea for good!”
Global Witness similarly celebrated the government’s move, declaring on social media that “this is brilliant news!”
“New oilfields are an act of climate vandalism,” the group added. “Governments must prioritize people, not polluters’ profit.”
Eldar Saetre, CEO of Equinor. Credit: Jeff Gilbert / Alamy
Campaigners likened the fossil fuel company’s patronage of climate events to letting an “arsonist sponsor a fire safety conference”.
Major media companies have sparked a wave of criticism after allowing a Norwegian oil and gas company behind the UK’s largest new North Sea project to sponsor events on climate change.
Equinor was an official sponsor of two conferences on climate and energy this week, one run by the New Statesman magazine, and one run by Politico. Both saw MPs pull out over the sponsorship, while the first was interrupted by a climate activist.
The Norwegian state-owned company has a majority stake in the Rosebank North Sea oil field, which has been dubbed a “carbon bomb” by environmental law charity ClientEarth.
Equinor claims it supplies 27 percent of the UK’s energy from oil and gas, and is currently investing $6 billion (£4.8 billion) a year in fossil fuel exploration and drilling.
“Allowing fossil fuel companies like Equinor to sponsor and speak at climate conferences is as absurd as allowing an arsonist to sponsor and participate in fire safety conferences,” said Carys Boughton of the Fossil Free Parliament campaign. “At this critical time for climate and energy policy-making, we can’t afford this absurdity.”
Equinor’s sponsorship of these events is the latest example of fossil fuel companies using media partnerships to greenwash their polluting activities.
An investigation by DeSmog and Drilled in December detailed how oil and gas companies are using media deals – including partnerships with Politico, the Economist, the Financial Times, Reuters, and the Washington Post – to present a climate-friendly image.
DeSmog also revealed this week, based on documents released by a powerful U.S. congressional committee, that fossil fuel companies believe these media partnerships help to protect their “social licence to operate”.
Michelle Amazeen, a mass communications researcher at Boston University, said that oil and gas sponsorship is “a strategic move by fossil fuel companies to compromise the integrity of events intended to foster dialogue and action around climate issues”.
She added that, “While the sponsorship gives the impression of caring about the environment, it’s a veneer that’s like an oil slick obscuring the actual conduct of the fossil fuel industry.”
This week, a cross-party group of 50 MPs, including three Conservatives, wrote to Prime Minister Rishi Sunak urging him to end the licensing of new oil and gas fields, appoint a climate envoy, and back the Beyond Oil and Gas Alliance, an international coalition working to facilitate a global phase-out of oil and gas production.
Alice Baxter, Equinor’s UK spokesperson, said: “At Equinor we believe in openness and the importance of engaging in the complex conversations around the energy transition. We respect everyone’s right to protest and encourage robust debate.”
New Statesman Event
Equinor was one of the sponsors of the New Statesman’s Energy and Climate Change Conference on 14 May at the Leonardo Royal Hotel in south London.
Green Party MP Caroline Lucas pulled out of the event last week due to Equinor’s sponsorship.
Was due to speak at @NewStatesman conference on Energy & Climate Change. Then it turns out it's sponsored by @Equinor_UK – the company backing giant Rosebank oil field. That's me out. #StopRosebank
At the event, attended by DeSmog, the second panel discussion featured Equinor’s UK country manager Alex Grant. The session was entitled “How can the UK lead the world in the green transition?”
When it was Grant’s turn to speak, a Fossil Free London activist in the audience stood up and gave a speech criticising Equinor and its sponsorship of the event.
BREAKING: Climate protester interrupts Equinor-sponsored New Statesman event.
The activist said climate scientists “are warning us that we are headed towards a catastrophic 2.5C of global warming. Yet staggeringly, Equinor, that’s sponsoring this event, is opening the largest undeveloped oil field in the North Sea.”
Labour MP Meg Hillier, who chairs the Public Accounts Committee and was on the panel, interjected: “Why don’t you let us talk about it, because I’m actually here to be pretty critical of the government, I’d quite like to get my points across.”
The protester continued her speech, and was removed by security. Her comments received a round of applause from the audience.
Grant replied by saying that Equinor takes a “pragmatic approach” to the energy transition, as opposed to one that “costs more than it needs to”. He also defended the Rosebank project, saying it would reduce carbon emissions over the long term.
Rosebank could produce around 300 million barrels of oil over its lifetime, emitting 200 million tonnes of carbon dioxide.
Questions at the New Statesman event were submitted online, rather than asked in person by the audience.
During the event’s final session with Chris Stark, the former chief executive of the Climate Change Committee, which advises the government on its climate policies, DeSmog submitted a question about Equinor and Rosebank’s impact on the climate. The question was not posed to the panel.
The latest issue of the New Statesman magazine, which features an interview with climate scientist and author Michael Mann, includes advertorials from biomass company Drax, which is the UK’s largest single source of CO2 emissions, and Calor Gas, one of the UK’s largest suppliers of liquefied petroleum gas.
The New Statesman hosted a number of events at the 2023 Labour Party conference sponsored by fossil fuel companies and lobbying groups, including Cadent, National Gas, and Offshore Energies UK.
The New Statesman did not respond to DeSmog’s request for comment.
Politico Event
On 16 May, Politico held its own Energy and Climate Summit, also sponsored by Equinor.
Labour MP Alex Sobel, who chairs the All-Party Parliamentary Group on Net Zero, last week pulled out of the event due to Equinor’s sponsorship.
I have decided to withdraw from the Politico Energy and Climate Summit next week, due to the involvement of Equinor. It was unclear that they were sponsors and I would not have accepted the invitation had their sponsorship been known.
— Alex Sobel MP for Leeds Central and Headingley (@alexsobel) May 8, 2024
At the event, attended by DeSmog, a panel on Carbon Capture and Storage (CCS) featured David Cairns, a former British ambassador to Sweden and now Equinor’s vice president of political and public affairs.
When questioned by the Politico chair, Cairns confirmed that the company had no plans to set targets for phasing out oil and gas.
He also said it was “debatable” whether the oil and gas industry was making large profits. Equinor reported £28 billion in profits in 2023. Cairns added that it was “really misplaced” to think that the oil and gas industry is an “easy business in which it’s easy to make money”.
A Politico spokesperson said: “This multi-sponsored Energy and Climate UK Summit is an extension of Politico’s ongoing and robust coverage of climate policy in the United Kingdom.
“There is a clear division between Politico’s newsroom and our commercial operations. With critical milestones and a general election on the horizon, we continue to cover climate each day through our dedicated reporting.”
Politico’s influential London Playbook newsletter has this week been sponsored by the oil and gas giant BP.
Michelle Amazeen said that fossil fuel sponsorship of media companies “has delegitimised their journalistic content, opened their journalists up for attack, and has even led to the resignation of journalists who are trying to write about climate issues”.
Equinor’s AGM
Equinor also faced further public criticism this week, when on Tuesday the company was confronted by a climate activist at its annual general meeting (AGM).
Lauren MacDonald of the environmental group Uplift delivered a four minute speech about the company’s impact on the planet, and promised that campaigners would not stop opposing Rosebank or the company’s other fossil fuel projects.
I just confronted the CEO of @equinor and it’s majority shareholder, the Norwegian government, at their AGM.
The people in this room are responsible for the UK’s biggest undeveloped oil field – Rosebank.
— Lauren MacDonald🌻 #StopRosebank (@laurensunfl0wer) May 14, 2024
At the meeting, shareholders rejected a resolution calling on the company to align its strategy and spending with climate goals.
“We invest in the energy the world needs now. That is oil and gas,” Equinor’s chief executive Anders Opedal said.
Tessa Khan, executive director at Uplift, told DeSmog: “Try as it might, Equinor can no longer ignore the scale of opposition to its climate-wrecking business model – it’s not just campaigners who are calling out its harmful mission, it’s also politicians pulling out of Equinor-sponsored events and shareholders demanding it ditch its plans of endless oil and gas expansion.
“Even if Equinor wants to stay silent, these demands for accountability will only get louder. Governments in the UK and Norway – who can’t afford to ignore this chorus of voices – must reject Equinor’s delay tactics and insist that their activities don’t further endanger our climate. As a first step, this means rejecting new oil and gas fields, and pulling the plug on disastrous projects like Rosebank.”
All-Energy and Dcarbonise
Equinor was not the only fossil fuel company to sponsor climate events this week.
On Wednesday, climate protesters disrupted the All-Energy and Dcarbonise event in Glasgow, which describes itself as “The meeting place for the renewable and low carbon energy community”, yet featured paid exhibitions from oil and gas majors BP and Shell.
Protesters from Stop Polluting Politics, and Fuel Poverty Action interrupted a speech by Scotland’s Net Zero and Energy Secretary Màiri McAllan, and a pre-recorded video of UK Energy and Net Zero Secretary Claire Coutinho. Both appeared alongside Louise Kingham, a senior vice president at BP.
“As the lethal reality of climate breakdown becomes unmissable, the PR strategies of big fossil fuel companies like Equinor and Shell reveal their growing isolation, and an increasingly desperate attempt to buy friends,” said Andrew Simms, a director of the New Weather Institute and a co-founder of the Badvertising campaign.
“They are the unwelcome guests at the party with everyone waiting for them to leave, but who keep buying rounds for anyone willing to drink with them in order to stay.”
Rishi Sunak on stopping Rosebank says that any chancellor can stop his huge 91% subsidy to build Rosebank, that Keir Starmer is as bad as him for sucking up to Murdoch and other plutocrats and that we (the plebs) need to get organised to elect MPs that will stop Rosebank.Image of InBedWithBigOil by Not Here To Be Liked + Hex Prints from Just Stop Oil’s You May Find Yourself… art auction. Featuring Rishi Sunak, Fossil Fuels and Rupert Murdoch.
The UK government is facing two separate legal challenges over its approval of the massive Rosebank oil project in the North Sea.
Both Greenpeace UK and climate group Uplift argue the approval of the oil field breaks the Government’s net zero pledges and fails to acknowledge the project’s environmental harm and emissions impact.
Uplift claims the Energy Secretary failed to prove how the oil field was consistent with the UK’s legally binding net zero emissions target and argues, the government did not provide a good enough assessment of the environmental impact of Rosebank on marine life.
In Greenpeace UK’s application, it argues the Environmental Impact Assessment used to approve the oil field did not consider downstream emissions, and is therefore invalid. The campaign group also argues that there is no evidence Scottish Ministers were consulted on the impacts of Rosebank, which it claims breaches Conservation of Offshore Marine Habitats and Species Regulations.
Greenpeace also argue oil contamination could affect whales and wild birds, while the drilling and cable laying under the sea could destroy habitats for species that live on the seabed.
Rishi Sunak gave the go-ahead for the controversial undeveloped oil field in September, set to be the UK’s largest untapped oil field containing an estimated 500 million barrels of oil. With Norwegian owner Equinor set to receive £3 billion in tax breaks.
