The Jackdaw field will start supplying gas to homes and businesses from the end of the month, the government said
3m agoClimate campaigners condemn ‘maddening’ decision to approve Jackdaw gasfield
4m agoJackdaw development will create 27 new jobs, and safeguard 273 existing ones, government says
28m agoHealey announces initial £2bn funding for Energy Wealth Fund, which will allocate some North Sea tax revenue for renewables
39m agoEnergy secretary Miatta Fahnbulleh says approving Jackdaw gasfield won't lead to cheaper energy bills
51m agoUK inflation rises by more than expected to 3.5% as war drives up fuel prices
1h agoLabour accused of ‘climate vandalism’ by Green leader Polanski after Jackdaw gasfield approved
Good morning. After months of delay, the government has taken a decision on one of the most difficult climate crisis/energy supply challenges on the table. It has approved the Jackdaw gasfield, east of Aberdeen. Peter Walker and Kiran Stacey have the story here.
Here is the government’s news release. And if you want to all the technical documents relating to the decision, you will find them here.
At the last election, Labour said it would not approve new oil and gas licences for the North Sea, but that it would allow existing projects to go ahead. But two projects that had been approved by the Tories – Jackdaw, and the Rosebank oilfield – were blocked by the courts who ordered a rethink, and Labour decided to treat them as existing projects, not brand new ones. But that did not mean Jackdaw and Rosebank were automatically going to be approved.
Over the past 12 months or so, largely as a result of high global energy prices, the public and political debate has shifted, and pressure to allow more ongoing North Sea extraction got stronger. Today’s decision did not come as a surprise. But the Rosebank decision will be a much tougher one because its carbon emissions are far higher than Jackdaw’s, and the environmental argument against it is stronger.
In a statement, Andy Burnham described today’s decision as an example of the “pragmatic approach” he wants to take to energy policy. He said:
I welcome the energy secretary’s decision, which will protect hundreds of jobs and help keep millions of homes warm this winter. At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help. We’re committed to moving towards renewable energy and reaching net zero by 2050. But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. That’s why we’re taking a pragmatic approach to the North Sea. We’re also establishing a new Energy Wealth Fund to invest in renewable energy, support the green transition and help reduce energy bills over the long-term.
I welcome the energy secretary’s decision, which will protect hundreds of jobs and help keep millions of homes warm this winter. At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help.
We’re committed to moving towards renewable energy and reaching net zero by 2050. But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. That’s why we’re taking a pragmatic approach to the North Sea. We’re also establishing a new Energy Wealth Fund to invest in renewable energy, support the green transition and help reduce energy bills over the long-term.
Some Labour figures are alarmed at the decision, but so far there has been very little public criticism of the move from the party’s MPs. The other main parties support Jackdaw going ahead. But the Greens have denounced the decision very strongly. This is from their leader, Zack Polanski.
This is climate vandalism. Today’s decision by Labour is a betrayal of all of our futures, Labour has abandoned all credibility in the fight against climate change. The energy secretary has herself said it will make no difference to energy bills; the health secretary has admitted the summer heatwave added to pressure on the NHS, and the industry’s own assessment is that it will create only 27 jobs. This is a victory for Shell over the people.
This is climate vandalism.
Today’s decision by Labour is a betrayal of all of our futures, Labour has abandoned all credibility in the fight against climate change.
The energy secretary has herself said it will make no difference to energy bills; the health secretary has admitted the summer heatwave added to pressure on the NHS, and the industry’s own assessment is that it will create only 27 jobs.
This is a victory for Shell over the people.
Here is the agenda for the day.
Morning: Douglas Alexander, the Scottish secretary, is on a visit to a gas terminal in Peterhead to promote the Jackdaw decision.
Noon: Andy Burnham faces Kemi Badenoch at PMQs.
After 12.30pm: Miatta Fahnbulleh, the energy secretary, is expected to make a statement to MPs about the Jackdaw decision.
2.10pm: Michelle O’Neill, Northern Ireland’s first minister, and Emma Little-Pengelly, the deputy first minister, give evidence to Stormont’s executive office committee.
Afternoon: Burnham welcomes Haitham bin Tariq, the Sultan of Oman, to Downing Street.
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Fiona Harvey, the Guardian’s environment editor, has more here on climate campaigners condemning the Jackdaw decision.
The government itself has admitted that the Jackdaw development will only create a small number of new jobs. This is from the small print of its news release.
The developer estimates that Jackdaw will create 27 new direct jobs and safeguard 273 existing jobs that would otherwise be lost. The developer also estimates that the project will add around £2.9 billion to the UK economy. Over its lifetime, Jackdaw is estimated to produce gas with an energy equivalent to around 40 million barrels of oil.
The developer estimates that Jackdaw will create 27 new direct jobs and safeguard 273 existing jobs that would otherwise be lost. The developer also estimates that the project will add around £2.9 billion to the UK economy.
Over its lifetime, Jackdaw is estimated to produce gas with an energy equivalent to around 40 million barrels of oil.
Here is an explainer by Jill Ambrose about the Jackdaw decision.
But environmental groups have condemned the decision. Ami McCarthy, head of politics for Greenpeace UK, said:
Approving Jackdaw shows the toxic grip fossil fuel lobbyists still hold over our energy policy. Andy Burnham promised pragmatism [see 8.40am], but there is nothing pragmatic about rubber-stamping a project that won’t lower energy bills, won’t boost energy security and will create just 27 full-time jobs … True pragmatism means severing our reliance on expensive oil and gas that leaves British households broke, supercharges extreme weather, and leaves our energy security at the mercy of petrostates.
Approving Jackdaw shows the toxic grip fossil fuel lobbyists still hold over our energy policy. Andy Burnham promised pragmatism [see 8.40am], but there is nothing pragmatic about rubber-stamping a project that won’t lower energy bills, won’t boost energy security and will create just 27 full-time jobs …
True pragmatism means severing our reliance on expensive oil and gas that leaves British households broke, supercharges extreme weather, and leaves our energy security at the mercy of petrostates.
Danny Gross, a climate campaigner for Friends of the Earth, said:
Is the prime minister living in a parallel universe? One where we haven’t just endured our hottest summer on record, with droughts, wildfires and, in all likelihood, the most heat-related deaths on record? And where the UN hasn’t warned that we’re on the brink of breaching the all-important 1.5 degree warming limit?
And this is from Tessa Khan, executive director of Uplift, an organisation campaigning for the transition to renewables.
Shell will be cheering this decision but it won’t knock a penny off our energy bills, which is what’s keeping people up at night, or make a meaningful difference to our gas supply. Jackdaw will provide around just 2% of our gas demand for roughly ten years. It has been oversold and won’t stop the decline in North Sea jobs, as it will be largely unmanned and operated remotely.
Some Labour-affiliated unions have been among those organisations most in favour of Jackdaw being allowed to go ahead. Gary Smith, the GMB general secretary, issued this statement this morning.
This is great news. Andy Burnham’s government deserves real credit for doing the right thing for our country. For too long, this and other vital decisions on our gas supplies and storage have been put off, risking the UK’s energy security at a time of worrying international volatility.
This is great news. Andy Burnham’s government deserves real credit for doing the right thing for our country.
For too long, this and other vital decisions on our gas supplies and storage have been put off, risking the UK’s energy security at a time of worrying international volatility.
The Aberdeen and Grampian Chamber of Commerce has welcomed the Jackdaw decision – while challenging the government to also approve the Rosebank oilfield.
Russell Borthwick, its chief executive, said:
This is a hugely welcome decision, and exactly the sort of pragmatic call the North Sea has been crying out for. Jackdaw is 99.9% complete and, with approval now secured, gas from this field will be flowing into homes up and down the country within weeks … Every molecule of gas we produce in the North Sea, under some of the world’s highest environmental standards, is a molecule we don’t have to import on a tanker from overseas … But Jackdaw cannot be the end of the story. Rosebank is every bit as vital to our energy security and every bit as ready to deliver for the UK supply chain anchored here in the North East of Scotland.
This is a hugely welcome decision, and exactly the sort of pragmatic call the North Sea has been crying out for.
Jackdaw is 99.9% complete and, with approval now secured, gas from this field will be flowing into homes up and down the country within weeks … Every molecule of gas we produce in the North Sea, under some of the world’s highest environmental standards, is a molecule we don’t have to import on a tanker from overseas …
But Jackdaw cannot be the end of the story. Rosebank is every bit as vital to our energy security and every bit as ready to deliver for the UK supply chain anchored here in the North East of Scotland.
Alongside the Jackdaw announcement, the government has said it is setting up an Energy Wealth Fund. This will in effect ringfence some North Sea oil and gas tax revenues for investment in renewables.
In its news release, the Department for Energy Security and Net Zero says:
The chancellor is also announcing today the establishment of a new Energy Wealth Fund, which will use tax revenues from North Sea oil and gas to invest in renewable and low carbon energy projects and support the green transition. Reflecting our commitment to the North Sea, this will start with an initial £2bn injection of funding, with future revenues from the North Sea flowing into the fund over time … The Energy Wealth Fund will support investment in the renewable and low carbon energy industries that will power Britain’s future. It will help ensure more value from Britain’s energy resources is invested for the long term, supporting the green transition and creating a lasting national asset for future generations.
The chancellor is also announcing today the establishment of a new Energy Wealth Fund, which will use tax revenues from North Sea oil and gas to invest in renewable and low carbon energy projects and support the green transition. Reflecting our commitment to the North Sea, this will start with an initial £2bn injection of funding, with future revenues from the North Sea flowing into the fund over time …
The Energy Wealth Fund will support investment in the renewable and low carbon energy industries that will power Britain’s future. It will help ensure more value from Britain’s energy resources is invested for the long term, supporting the green transition and creating a lasting national asset for future generations.
John Healey, the chancellor, said:
Through our new Energy Wealth Fund, we will invest in the clean energy industries of the future, creating jobs, driving growth and strengthening Britain’s energy security.
In her interviews this morning, Miatta Fahnbulleh confirmed that approving the Jackdaw gasfield would not lead to cheaper energy bills for consumers.
On LBC Nick Ferrari asked if the decision meant that his listeners would have lower bills. Fahnbulleh replied:
No, and I think it’s really important that we’re honest about this. That was not a consideration in the decision because it won’t mean cheaper bills. This was about energy security and having homegrown energy, and it was also because we thought it was compatible with our with our climate commitments.
No, and I think it’s really important that we’re honest about this. That was not a consideration in the decision because it won’t mean cheaper bills.
This was about energy security and having homegrown energy, and it was also because we thought it was compatible with our with our climate commitments.
Fahnbulleh did accept that the price of energy was a “fundamental” issue. But she said the government was addressing this in other ways, like removing VAT from electricity bills.
Miatta Fahnbulleh, the energy secretary, was on the Today programme this morning. Asked if she though the UK should reconsider having 2050 as its target date for reaching net zero carbon emissions, she replied: “That’s not my view.”
UK inflation climbed by more than expected in September to 3.5% after a surge in prices from the conflict in the Middle East that has pushed up the cost of diesel to record levels, Phillip Inman reports.
Here is the official Jackdaw decision.
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