Green campaigners lose battle to block North Sea licences

By Jonathan Leake

Green campaigners lose battle to block North Sea licences

Green campaigners have lost their attempt to block new North Sea exploration licences after a landmark High Court ruling dismissed their claims.

Oceana UK, a marine conservation organisation, brought the case after the former Conservative government granted more than two dozen licences to allow exploratory drilling in marine conservation areas off the coast of Scotland.

Marine conservation areas are set up to protect sea life, including puffins, seals and fish. Still, regulators at the North Sea Transition Authority (NSTA) approved the drilling plans anyway - despite warnings from government conservation watchdogs.

Oceana UK argued that the NSTA had failed to account for damage to marine life caused by oil spills and had also ignored the climate impacts of burning more oil and gas.

The plans were signed off by Claire Coutinho, the energy secretary under the last government, before her successor Ed Miliband imposed a ban on new exploration.

However, Mr Miliband's lawyers opposed Oceana's claim - despite his own subsequent ban - arguing that the licences only allow early exploration and further assessments will be carried out before oil or gas is produced.

The ruling is a disaster for green groups. Still, it marks a rare triumph for the oil and gas industry, which has been battered by a series of damaging court and political decisions on tax, climate emissions and licencing.

Previous Supreme Court ruling

Last year, it was hit by a Supreme Court ruling that new fossil fuel projects must justify all emissions from the eventual combustion of the oil and gas they produce.

This ruling halted development of two of the UK's largest projects, Equinor's Rosebank oil field off Shetland, and Shell's Jackdaw gas field in the North Sea.

The companies lost their licences, have applied for new ones, and are awaiting government decisions.

Separately, this week's Budget saw Rachel Reeves refuse to revoke the windfall tax imposed on oil and gas profits - meaning offshore operators will face a total tax rate of 78pc until 2030.

Mr Miliband said on Wednesday that the exploration ban would remain in place - though he allowed some minor relaxations.

Hugo Tagholm, the Oceana UK executive director, said: "Legally, the Government's decision to grant these licences stands, but morally, it will never be right. Allowing Big Oil to plunder and pollute our seas while the climate crisis trashes our future is not the right course of action, and it never will be."

A government spokesman said ministers wanted to "build a prosperous and sustainable future for the North Sea", adding: "This judgment means the licences granted under the previous government will remain in place."

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