Committees

Scottish Affairs Committee visits Grangemouth as it launches inquiry into GB Energy and the net zero transition

28 November 2024

Today the Scottish Affairs Committee launches an inquiry into GB Energy and the net zero transition. 

The UK has a statutory target of reaching net zero greenhouse gas emissions by 2050, and the Government has ambitions to make the UK a ‘clean energy superpower’ by 2030. Central to this is the creation of GB Energy, a publicly owned energy company, which will be headquartered in Aberdeen.  

The Committee’s inquiry will explore the net zero transition in Scotland and how the UK Government’s net zero ambitions will impact on Scotland’s energy industry. 

According to industry figures, oil and gas production supports over 84,000 jobs in Scotland. Approximately 1 in every 30 jobs in Scotland, and 1 in 5 in the North East, support the offshore energy industry. 

The Committee will consider what is required to achieve a just transition from North Sea oil and gas to clean power, which can help the UK meet its climate goals whilst also ensuring opportunities for economic growth in Scotland.  

GB Energy will form a key part of this inquiry, given its position as a flagship policy for the Government’s net zero goals.  

Members will examine what support is needed to transition oil and gas workers to clean energy, how clean energy supply chains can be developed in Scotland, and what measures would help Scotland’s renewables sector to achieve its potential.  

The inquiry's launch follows the Committee’s visit to the north and east of Scotland between 25 and 27 November, including the Grangemouth oil refinery. Grangemouth, Scotland's only oil refinery, is scheduled to be closed and converted into a fuel import terminal, which will result in the loss of approximately 400 jobs.  

As part of their visit, the Committee met with Forth Valley College and trade union Unite to discuss the future of the site and what steps are being taken to support workers impacted by the closure.  

In Aberdeenshire, the Committee visited the St Fergus gas terminal to learn about its critical importance for UK energy supply, and Project Acorn’s work to decarbonise Scotland’s industry.  

In Aberdeen, Members also met with stakeholders from the Energy Transition Zone, ORE Catapult, Flotation Energy and the Kincardine Offshore Windfarm, to discuss the incredible potential for Scotland’s renewable energy sector and floating offshore wind.  

On the final day of its visit, the Committee went to the Inverness and Cromarty Firth Green Freeport (ICFGF), which is one of the first Green Freeports in Scotland. Their visit showcased the possible reinvigoration and change that the renewables sector can bring to the local area, for businesses or local workers alike. 

Chair comment

Chair of the Scottish Affairs Committee, Patricia Ferguson MP, said:  

“The Committee’s visit to Grangemouth reinforced how important it is to make sure Scotland gets the transition to net zero right. The UK is committed to the net zero target, and Scotland has the resources and potential to drive and deliver this transformation, but we want to hear more about how this transition should be managed so that people are not left behind. 

“Given the huge role played by oil and gas in Scotland’s economy and employment, we will examine how the UK Government’s ambitions for clean energy will impact on Scotland. On our visit, we heard about the incredible potential for renewable energies in Scotland and saw how upskilling projects for local oil and gas workers are beginning to take shape.  

“During the inquiry, the Committee will ask how we can support workers to transition from oil and gas to jobs in clean energy, and how clean power technologies can support economic growth in Scotland. We’ll also look at how the UK Government can support Scottish renewables to reach their potential, and how clean energy supply chains can be built. 

“As part of this inquiry, we will also closely scrutinise GB Energy, which has been championed as a way to help make Britain a clean-energy superpower. As GB Energy proceeds to establish its headquarters in Aberdeen and offices in Edinburgh and Glasgow, we will be asking how the new company can operate most effectively to support employment and growth in Scotland.” 

Terms of reference 

Written submissions are invited in response to the following questions. The deadline for submitting evidence is 12th January 2025. You can submit evidence here.  

  • What impact will the UK Government’s approach to net zero have on Scotland’s oil and gas industry? 
    • What state of readiness is the oil and gas sector in for the net zero transition? 
    • Is the scaling up of the clean energy sector keeping pace with the decline of jobs and investment in the oil and gas sector, or does the UK Government need to do more to close this gap? 
  • UK Government interventions will be necessary to maximise the ability of oil and gas workers to find jobs in clean energy? 
  • Are Scotland’s energy industry and associated supply chains well-placed to transition to clean energy generation, or is more support needed? 
  • What actions should the UK and Scottish Governments take to ensure the necessary generation and transmission infrastructure to support the development of Scotland’s renewables sector? 
  • How can GB Energy most effectively support employment, economic growth and the development of clean energy supply chains in Scotland? 
  • How should GB Energy work with the Scottish Government and other Scottish bodies? 
  • What does a just transition look like for workers and communities across Scotland’s highland and island communities, and what role might community energy play in this? 
  • Can the UK learn lessons from international examples about how to effectively manage Scotland’s energy sector transition? 

Further information

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