The BCC is pleased to be part of the North Sea Transition Taskforce, which launched in November 2024 and consists of key stakeholders engaged in the North Sea, including the supply chain, unions, academia and environmental organisations. This taskforce recognises the importance of an orderly transition for the North Sea which will safeguard jobs in the sector while ensuring that the UK continues to move towards net zero.

A number of Local Chambers of Commerce have a significant number of members which operate in the energy sector, and they may also choose to submit their own responses to this consultation.

1. 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?

It is clear that the oil and gas sector in the North Sea will continue to have an important role in the UK’s energy security. However, it is widely accepted that the basin is in decline and that the UK must work towards net zero. It is vital, therefore, that there is a long-term plan in place to manage the transition from the oil and gas industry in the North Sea to the low carbon sector. A holistic, long-term plan can provide stability and certainty for those in the sector.

There are opportunities to protect the workforce in the oil and gas sector, maximise investment and decarbonise, however, there are currently concerns that the pace of the transition is not happening at the same rate as the growth of the low carbon sector. Aligning these two factors is key to ensuring the transferability of jobs from the oil and gas industry in the North Sea to the renewables sector and preventing the significant loss of jobs that are at risk.

2. What UK Government interventions will be necessary to maximise the ability of oil and gas workers to find jobs in clean energy?

It is vital that the oil and gas sector in the North Sea and the low carbon / clean energy sector are not seen as two separate groups and that the Government recognises that that there are significant transferable skills between both sectors. Some estimates have suggested that around two-thirds of jobs in the oil and gas sector have skills which could transition to the low carbon sector (some estimates have been as high as 90%). This includes jobs relating to project management, engineering, and maintenance and repair etc. The skills and experience of the workforce in the oil and gas industry will be key to supporting the UK’s race to net zero through the development of low carbon energy, including Carbon Capture, Usage and Storage, hydrogen, and offshore wind.

The Government must ensure that the energy transition in the North Sea takes place at a pace that is aligned with strengthened clean energy. This is crucial to protecting the jobs of around 200,000 people who are directly or indirectly linked to the oil and gas industry in the North Sea. Getting this transition right is not just to the benefit of people working in the North East of Scotland; this sector has an impact across the UK with the supply chain.

There are concerns around the Energy Profits Levy’s negative impact on investment in the North Sea, which could lead to greater reliance on oil and gas imports. Following the Budget, the BCC called on the Government to set out its plans for a successor regime to replace the Energy Profits Levy after 31 March 2030, including a timeframe. This is critical to providing certainty for the sector and delivering a measured and orderly energy transition. This transition should also ensure that the diversity of our power supplies is balanced and that the UK does not become over-reliant on fossil fuels, which could put the UK’s energy security at risk. 

3. Are Scotland’s energy industry and associated supply chains well-placed to transition to clean energy generation, or is more support needed?

See answer to question 2 above.

4. 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?

5. How can GB Energy, and other ways of backing industry (including funding), most effectively support employment, economic growth and the development of clean energy supply chains in Scotland?

The BCC welcomed the launch of Great British Energy in providing certainty to the Government’s energy policy framework. The BCC has called for deeper partnerships between the Government and business to help support the Government’s policy framework for Net Zero. Confirmation that GB Energy was being headquartered in Aberdeen was welcomed by our Chamber colleagues and businesses in the region.

The Government should work closely with industry as GB Energy carries out its work to help the UK adopt more low carbon technologies and work towards net zero.

6. How should GB Energy work with the Scottish Government and other Scottish bodies to identify appropriate funding and other mechanisms?

7. What does a just transition look like for workers and communities across Scotland’s highland and island communities, and what role might community energy and community benefits play in this?

Getting the energy transition in the North Sea right is vital to protecting the jobs and livelihoods of the over 100,000 workers who work directly in the industry and are based largely in Scotland. Engaging with communities whose livelihoods have been built around the North Sea for decades is key to providing certainty, protecting jobs and preventing the loss of communities in Scotland.

8. Can the UK learn lessons from international examples about how to effectively manage Scotland’s energy sector transition?