The North Sea Transition Taskforce has been launched in Aberdeen to support a just transition for offshore workers and firms operating in UK waters.
Supply chain businesses, unions, environmental groups, and energy policy experts will pull together to inform the new taskforce.
Initially proposed by the Aberdeen and Grampian Chamber of Commerce (AGCC) last year following an industry survey alongside KPMG and ETZ, the taskforce launched on Wednesday.
Maggie McGinlay, chief executive at ETZ, said: “Our clear focus is on repositioning the north-east of Scotland as an internationally recognised energy cluster focussed on the delivery of net zero.
“In order to accelerate the commercialisation of offshore wind, green hydrogen and carbon capture and storage, we must be able to draw upon the skills and expertise of our world class supply chain and that is why this newly established taskforce is a welcome development.”
Who’s in charge?
© Supplied by PA Archive/PA ImagesFronted to by Philip Rycroft, the former permanent secretary at the Department for Exiting the European Union, the taskforce aims to “safeguard tens of thousands of jobs” while securing the North Sea’s long-term future “as a critical national asset.”
Shevaun Haviland, director general of the British Chambers of Commerce and the executive director of the new North Sea Transition Taskforce, said: “His [Rycroft’s] many years of experience at the highest levels of Government, both at Westminster and in Scotland, will be invaluable in gathering experience and insight from all those interested in seeing a just transition and to finding a broad consensus on the right way forward.”
Rycroft said key questions regarding licensing, decommissioning and investment need to be answered while industry is supported with the right legislation to deliver the energy transition.
He said: “There is no doubt the North Sea will continue to have a vital role in the UK’s energy supply for many years. However, the approach to moving away from oil and gas to low carbon industries is a careful balancing act. Without a long-term plan, decision-making will continue to be piecemeal, making it harder to provide stability for all of those impacted.”
The taskforce will hold its first meetings before the end of the year and is due to publish its recommendations for the Scottish and UK Governments next Spring.
© Supplied by Michal WachucikRussell Borthwick, chief executive of AGCC said at an event in Aberdeen: “We need to act now or risk sleepwalking into repeating the mistakes of the 1980’s when the coalfield closures blighted whole communities for generations.”
Rycroft added: “Alongside the dialogue between Government, business, NGOs and the public on current and emerging issues, our work will look to ensure a long-term strategic vision that will help to protect the highly skilled North Sea workforce and guide future operations.
“We need to involve the widest possible cross-section of interested parties in the decision-making process to ensure we reach a broad consensus on the right way forward and that no one is left behind.”
North Sea confidence drops
AGCC’s 40th Energy Transition Survey showed that confidence in the North Sea over the next one to five years is at an all-time low.
The chamber claims that this is worse than at any point during the financial crisis, oil price crash or during the Covid-19 pandemic.
Haviland commented: “The importance of the North Sea cannot be overstated; it is a national asset and this deserves a national conversation.
“The transition is vital for net zero, for the UK’s energy security and long-term growth, but it must also preserve the roles of hundreds of businesses and their tens of thousands of skilled workers.”
Following the latest Energy Transition report, Paula Holland, office senior partner for KPMG in Aberdeen, said: While uncertainty has weighed heavy on those operating in the sector, with many fiscal and regulatory changes over the past few years, levels of optimism remain about the long-term future and its place at the centre of the UK transition.”
Holland pointed to the announcement that GB Energy will be based in Aberdeen as a reason for positivity within the region, saying that combined with news of the North Sea Transition Taskforce there is a “significant opportunity” to be grasped.
She added: “It can only enhance the view that the region will continue to be the hub of the energy sector in the UK.
“However, the next few years are critical in turning local grit and long-term optimism into action.”
