The Iran war has triggered another fossil-fuel energy crisis, with surging global prices and increasing concerns over energy security.
In the UK, many newspapers, opposition politicians and other public figures have used the crisis to argue in favour of issuing more licences for oil and gas drilling in the North Sea.
These arguments have also been amplified in AI-generated posts on social media, shared by fake accounts that usually post anti-immigrant and anti-Muslim content.
However, many of these arguments rest on false or misleading claims about the impact that further drilling could have on the UK’s bills, energy security, emissions and tax revenue.
The North Sea is a “mature basin” where production has been falling for decades, because most of the oil and gas it once contained has already been extracted.
While it would be possible to slow the rate of decline in oil and gas output from the North Sea, the quantities that would be economic to extract are disputed.
Overall, the transition to clean-energy supplies is expected to be far more effective at boosting UK energy security and reducing reliance on imports.
Moreover, the climate-change arguments for limiting fossil-fuel production, which have been made by scientists, the UN secretary general and even the Pope, remain as valid as ever.
Below, Carbon Brief factchecks some of the most common claims about North Sea oil and gas.
- FALSE: ‘Reopening the North Sea would lower bills’
- MISLEADING: ‘Energy from the North Sea generates a lot less CO2’
- FALSE: ‘Britain is a resource-rich nation that has chosen dependency’
- FALSE: North Sea is ‘best way to protect us from volatility and provide energy security’
- MISLEADING: ‘The head honchos of the green lobby say we should drill’
- FALSE: ‘The UK is the only country in the world banning new oil and gas licenses’
- MISLEADING: ‘With new North Sea licences would come thousands of jobs’
- MISLEADING: North Sea drilling ‘would secure a rush of revenue into the Treasury’
- FALSE: Ed Miliband is an ‘anti-North Sea’ climate change ‘fanatic’
FALSE: ‘Reopening the North Sea would lower bills’
Many right-leaning newspapers and commentators have falsely argued that opening up new oil and gas fields in the North Sea would lower energy bills in the UK.
There is no evidence to support such claims. Indeed, numerous experts have explained that new drilling would make no difference to bills in the UK.
For example, the Daily Express carried fact-free assertions from the hard-right, climate-sceptic Reform party on its frontpage under the headline: “Get drilling to stop bills soaring.” Despite the UK not using oil to generate power, it claimed:
“Open[ing] up the UK’s biggest oil field [would] stop power bills soaring.”
At the beginning of March, US president Donald Trump told the Sun that his advice to UK prime minister Keir Starmer would be:
“Open up the North Sea. Immediately. Your energy prices are through the roof.”
In the Daily Telegraph, an “energy consultant” called Kathryn Porter, who has authored “papers” for climate-sceptic lobbyists, listed why she thinks more drilling could cut energy bills under the headline: “Reopening the North Sea would lower bills.”
On Twitter, Reform said the Labour and Conservative governments had “failed the British people” by “refusing to drill in the North Sea”. It added that more drilling would make “Britain energy independent once again” and “bring down bills”.
Contrary to these claims, numerous experts have said that further drilling in the North Sea would do nothing to cut bills, because UK energy prices are set on international markets.
In 2022, the Climate Change Committee (CCC) wrote that increased UK extraction was not expected to “materially affect global oil or gas prices, as the UK energy market is highly connected to international markets and the potential supply [is] relatively small”.
It added that, even if all proven UK reserves and resources of gas from new fields were extracted, this would only meet about 1% of European demand each year up to 2050.
Jack Sharples, senior research fellow at the Oxford Institute for Energy Studies (OEIS), tells Carbon Brief that “you’re not going to bring prices down versus the current level, because you’re not going to be able to produce very much more [from the North Sea]”.
The Labour government has made similar arguments, saying in a “factsheet” on the Iran crisis that the UK is a “price-taker…not [a] price-maker”. It said:
“Future exploration in the North Sea is too marginal to make a difference to the overall supply in an international market…New licences to explore new fields wouldn’t make any difference to the prices set by international markets and paid by UK billpayers.”
Even shadow energy secretary Claire Coutinho, who has advocated strongly for further drilling, admitted in 2023 that new licenses “wouldn’t necessarily bring energy bills down”.
The North Sea is a “mature basin”, with around 90% of what it contained “already drained dry”. Most of what is produced for the basin is now oil, around 80% of which is exported.
In addition, oil and gas reserves are owned by private companies once licences are issued and the fuel is sold at international rates. Therefore, whether it is produced in the North Sea or elsewhere, its price is driven by the global market.
Moreover, the limited quantity of gas left in the ageing North Sea basin would do little to impact international markets and, thus, little to impact international prices.
Climate YouTuber Simon Clark discusses whether more North Sea oil and gas drilling could lower energy bills in the UK.
Recent analysis by the Smith School at the University of Oxford found that, even if the UK maximised North Sea oil and gas and used all revenues from the sector to subsidise lower energy bills, the impact would be limited. Under this unlikely scenario household bills could fall between £16 and £82 per year, or 1-4.6% a year.
The fact that further oil and gas production in the North Sea would have a limited impact on energy bills has been noted repeatedly, even by those in favour of drilling in the North Sea.
For example, in a separate comment piece in the Daily Telegraph calling on the UK to “max out on both renewables and North Sea oil and gas”, world economy editor Ambrose Evans Pritchard wrote:
“Reopening the North Sea would not make any difference to the current crisis, nor any difference to gas and petrol prices in the UK, since the volumes are too small to shift the traded global market.”
As such, the UK Energy Research Centre (UKERC) explained in a recent note:
“Squeezing additional oil and gas production from the UK may be technically possible, but it will have [a] negligible impact on the UK cost of living”.
MISLEADING: ‘Energy from the North Sea generates a lot less CO2’
Many North Sea advocates argue that drilling more in the basin would mean lower carbon dioxide (CO2) emissions, due to the high emissions from imported fossil fuels.
This is a line often used by the oil-and-gas industry itself, with the trade body Offshore Energies UK (OEUK) stating that “North Sea gas has a lower emissions footprint than liquified natural gas (LNG) from overseas”.
Additionally, it is an argument that is sometimes used by commentators who – in other circumstances – would not be making the case for low-carbon policies.
For example, in a Mail on Sunday column, the climate-sceptic journalist Andrew Neil wrote that “giving the North Sea a new lease of life” would:
“Even lower carbon emissions (because piping in energy from the North Sea generates a lot less CO2 than importing it).”
Conservative shadow energy secretary, Claire Coutinho, has also used this approach to question the government’s supposed opposition to North Sea drilling, writing in the Daily Telegraph:
“Doing so in the name of climate change when our own gas has four times fewer emissions than the LNG we’ll need to import instead? Unforgivable.”
The claim that UK gas from the North Sea produces “a lot less CO2” – and particularly the commonly cited “four times fewer emissions” figure used by Coutinho – is misleading.
It references the fact that imported LNG has higher overall emissions than North Sea gas, due to the energy-intensive processes needed to liquify, transport and regasify it.
However, as the chart below shows, the vast majority of emissions from gas result from burning it to produce energy.
When CO2 from gas combustion is taken into account, LNG emissions are not four times lower than North Sea gas emissions, but 15% lower.
The UK is reliant on LNG imports from a handful of countries, notably the US and Qatar. However, at present these imports make up only around 15% of the UK’s gas.
Of the remaining gas used in the UK, roughly half is produced domestically and the rest comes via pipeline from Norway. Norwegian pipeline gas has even lower emissions than UK supplies.
More broadly, analysis by the Climate Change Committee in 2022 found that, despite the small “emissions advantage” of UK domestic production replacing imports, this could be wiped out if increased UK production led to more fossil-fuel production overall.
FALSE: ‘Britain is a resource-rich nation that has chosen dependency’
One frequent false claim is that the UK has “chosen” to become reliant on fossil-fuel imports, as a result of policy decisions made by successive governments.
In fact, import dependency has primarily increased because most of the oil and gas in the North Sea has already been used up. It is a “mature basin” with falling output.
In the Daily Telegraph for example, Diana Furchtgott-Roth, former climate director at the Heritage Foundation, a US-based climate-sceptic lobby group, stated that the UK has “chosen dependency”. She wrote:
“[The UK] is not a resource-poor nation forced to depend on foreign suppliers. It is a resource-rich nation that has chosen dependency through planning rules, regulatory obstruction and a net-zero framework that treats domestic oil and gas production as a moral failing rather than a strategic necessity.”
It is true that the UK has become increasingly reliant on fossil-fuel imports. The country was a net energy exporter in 2000, but, by 2010, was dependent on imports for 30% of its energy supplies. On the same metric, the UK’s net import dependency reached 44% in 2024.
This is largely because UK fossil-fuel production peaked decades ago. Gas production in the North Sea fell by 74% between 2000 and 2025, while oil output fell by 75%.
Gas production is set to fall to 99% below 2025 levels by 2050 and oil is set to fall 94%, according to the government’s North Sea Transition Authority (NSTA). Even with further drilling, the NSTA expects gas output to fall by 97% and oil by 91%, as shown below.
Production has been in an inexorable decline for decades despite strongly supportive government policy through most of the period, including tax breaks and new licensing.
Contrary to the narrative that rising import dependency has been a policy choice, the main reason why production is falling is that the North Sea is a “mature basin”. In other words, most of the oil and gas it once contained has already been extracted and burned.
According to the thinktank Energy and Climate Intelligence Unit (ECIU), around 90% of the oil and gas that is likely to be produced from the North Sea has already been burned.
A related argument, aired on Sky News in mid-March 2026, is that the NSTA projections have been revised downwards over time, as a result of government policy. The idea is that there is more oil and gas available, but the government has “chosen” to ignore it.
Yet for gas, there is little difference between the NSTA projections published before and after the government’s 2024 election win and its decision to ban new licensing, as shown below.
While the NSTA projections for oil have shifted more noticeably between 2023 and 2026, this largely relates to output from existing fields, rather than the potential from new drilling.
There are a variety of other reasons why the NSTA projections have changed, notably including the economic viability of North Sea production.
Until the recent Iran war, UK oil prices had been declining steadily since the highs seen in the wake of Russia’s invasion of Ukraine in 2022.
This will have eroded the economics of North Sea production, particularly as the cost of extraction has gone up by roughly 40% since 2019.
A final claim relating to government policy choices is that the UK has, in the words of a recent Sun editorial, become “heavily dependent on imported energy because of unreliable wind and solar, and the government’s obsession with net-zero”.
This makes no sense – it is the opposite of the truth. Wind and solar generated more than 100 terawatt hours (TWh) of electricity in the UK last year, meeting a third of total demand.
Carbon Brief analysis shows that generating the same electricity from gas would have required around 200TWh of fuel, equivalent to three-quarters of UK imports of liquified natural gas (LNG).
In other words, without its fleet of what the Sun calls “unreliable wind and solar”, the UK would have needed to nearly double its LNG imports.
FALSE: North Sea is ‘best way to protect us from volatility and provide energy security’
The effective closure of the Strait of Hormuz has triggered the worst energy crisis since the 1970s and has reignited debate over how best to ensure the UK’s energy security.
Many politicians, newspaper editorials and comment articles have argued that getting more oil and gas out from under the North Sea would cut UK fossil-fuel imports and boost energy security.
Some have gone so far as to argue that the North Sea is the “best way” or “the” answer to ensuring UK energy security. This is clearly false. So too is the idea – promoted by the hard-right, climate-sceptic Reform party – that the UK could become “energy independent” by expanding North Sea production.
For example, Conservative leader Kemi Badenoch wrote a comment piece for the Sunday Telegraph under the headline: “Drilling the North Sea is the answer to the energy crisis.”
Meanwhile, Enrique Cornejo, energy policy director at North Sea industry trade association Offshore Energies UK (OEUK), told the Times:
“Current events demonstrate that the best way to protect us from volatility and provide energy security is to maximise our homegrown energy resources.”
The potential for extra oil and gas output is disputed, but not even the North Sea oil and gas industry claims that it could reverse the decades-long decline in production.
Analysis by the National Energy System Operator (NESO) shows that the transition to clean energy would boost UK energy security by significantly reducing fossil-fuel imports. In contrast, it says that imports would rise if the UK boosts domestic oil and gas production but fails to decarbonise.
The UK has been increasingly reliant on energy imports since 2003. This is because UK oil and gas production from the North Sea has fallen by roughly three-quarters since 2000. (See: FALSE: “Britain is a resource-rich nation that has chosen dependency.”)
The UK’s reliance on fossil-fuel imports is set to increase even further, as North Sea production continues to decline. The NSTA says oil output will fall to 94% below 2025 levels by 2050 – or 91% with new drilling. For gas, the figures are 99% and 97%, respectively.
OEUK and other advocates for the oil and gas sector dispute these figures, claiming that higher production would be possible if there are changes in government policy.
For example, a report commissioned by OEUK put forward a “high case” for North Sea production over the coming decades, predicated on what it calls “significant changes to tax, licensing and regulatory approvals”. Notably, this still showed steep declines in output.
The OEUK-commissioned report also looked at an even more optimistic “no constraints” case for higher North Sea. However, the report authors, consultancy Westwood Energy, described this as “beyond realistic assumptions”. It said:
“The ‘no constraints’ case is considered to be beyond realistic assumptions given the current regulatory and fiscal conditions and investor sentiment. For this case to be realised, major industry change would be required.”
Similarly, OEUK has published a scenario for North Sea gas production that it calls “upside potential”, in which output is held close to current levels for the next decade.
It has used these scenarios to argue that the decline in North Sea gas output is “not inevitable”. However, the details behind these claims are opaque.
The “upside potential” scenario is based on what OEUK describes as “data provided by OEUK members” and it assumes that the government immediately scraps the “energy profits levy” (EPL, known as the windfall tax, see below).
OEUK claims that this scenario is “not speculative” and that it “clearly demonstrate[s] that the decline in potential supply indicated by NSTA forecasts is the result of policy choices”.
On this point, it is worth reiterating that the NSTA forecasts for gas barely changed in response to the election of the current government in 2024, as illustrated above.
Ultimately, while it is clear that most of the oil and gas that was once under the North Sea has already been burned, significant resources do remain.
The key question is how much of this remaining oil and gas is both technically and economically recoverable under current policies and prices – and if policies were changed.
OEIS’s Jack Sharples tells Carbon Brief that the North Sea is a “very mature basin” and that “nobody’s talking about increased production versus current levels”. He continues:
“Even if licences were to be made available for further exploration and production, that would result in a little bit of extra supply over the next 12 months, let’s say, but obviously not a huge amount…We’re just talking about slowing down the rate of decline.”
Sharples adds that, nevertheless, he thinks it is “worth maximising whatever we can produce in the North Sea”.
Recent Carbon Brief analysis found that expanding clean-energy supplies would have a larger impact on UK gas imports than an increase in North Sea drilling, as shown below.
(This analysis was based on NSTA projections of possible extra North Sea gas output, which amounted to 16TWh in 2030. If the OEUK “upside potential” scenario could be realised, the extra gas would amount to further 108TWh, equivalent to around 90 LNG tankers.)
An additional aspect to this relates to timescales. It takes an estimated 28 years for new licenses to result in new oil and gas production, according to official figures.
The industry says fields that already have licenses, such as Rosebank and Jackdaw, could be developed more quickly, if they receive planning consent. The previous Conservative government had consented to these fields being developed, but this was overturned in the courts. The Labour government is in the process of considering whether to approve them.
(The new wind and solar projects from the latest renewable auction, which concluded in February 2026, are set to be operating by or around 2030.)
In a March 2026 note, the UK Energy Research Centre (UKERC) said that drilling for oil and gas “will not reduce bills or deliver energy security”. Instead, it said that “demand reduction should be a core focus of UK gas security”.
In the longer term, the National Energy System Operator (NESO) says that meeting the UK’s net-zero target would cut the country’s dependency on imported gas to 78% below current levels, whereas failing to decarbonise would see imports rising by a third as production falls.
At a recent parliamentary hearing, Miliband told MPs that this illustrated why “decarbonisation is essential for energy security”. He added that turning away from net-zero would leave the UK “really, really exposed”.
Octopus boss Greg Jackson said in a recent government press release: “Every solar panel, heat pump and battery cuts bills and boosts Britain’s energy independence.”
MISLEADING: ‘The head honchos of the green lobby say we should drill’
Numerous media outlets have picked up on supportive comments from what the Daily Telegraph has called “net zero’s champions”, backing the use of North Sea oil and gas.
Writing in the Daily Telegraph, shadow energy secretary Claire Coutinho said:
“From the wind lobbyists at RenewableUK to the chair of Great British Energy (Miliband’s ‘clean energy’ propaganda outfit), the head honchos of the green lobby say we should drill.”
This point was similarly made in an editorial in the Sun, which stated that “Octopus energy chief Greg Jackson…and even the head of RenewableUK have called for North Sea reserves to be reopened urgently”.
These comments were in reference to a handful of specific interventions that, in reality, were far more nuanced than simply calling for more drilling. Indeed, some of the so-called “net-zero champions” have clarified that they are not calling for new licenses at all.
In the Daily Telegraph, Tara Singh, chief executive of RenewableUK, wrote that “it is entirely sensible to support continued domestic oil and gas production in the North Sea”.
Similarly, Jackson wrote in the Daily Telegraph that “we should use what’s available from the North Sea”.
The Daily Telegraph published news stories to accompany both of these articles with the headlines “wind industry chief urges Miliband to restart North Sea drilling” and “Miliband must reopen the North Sea, Octopus boss says”.
On LinkedIn, Juergen Maier, chair of the government’s publicly owned, clean-energy company Great British Energy, set out several arguments in favour of more North Sea production.
These included slowing job losses in the region, the lower carbon intensity of North Sea oil and gas compared with imports and extra production supporting tax revenues.
His comments were picked up by the Financial Times and the Daily Telegraph, with the latter saying the comments from “Miliband’s clean-energy tsar” will “raise eyebrows”.
However, neither Singh, Jackson nor Maier called for new oil and gas licences – and they stressed that North Sea oil and gas will not bring down energy bills.
In fact, their position is similar to that of the UK government, which sees domestic fossil fuels playing an “important and valuable role” into the future.
Singh wrote: “Being serious about the UK’s important role in gas also means being honest about its limitations. The North Sea is a mature basin, not a limitless national asset.”
She added that politicians should not imply that more domestic drilling would bring down energy bills, as “it will not”. Instead, she wrote that new renewable generation offers “better value” for consumers, both when gas prices are normal and at “crisis levels”. (See: FALSE: “Reopening the North Sea would lower bills.”)
Expanding on her piece on Twitter, Singh clarified “we don’t represent the [oil and gas] sector and we’re not arguing for or against new licences”, adding:
“Before anyone gets too excited: I’m calling for a depoliticised conversation about energy in the UK – not an overhaul of policy to favour oil and gas.”
In his comment for the Daily Telegraph, Jackson added:
“We’re kidding ourselves if we think this is a panacea – it’s 20 years since the North Sea could meet all our needs – we’ve depleted the most abundant reserves and the remainder will be less productive and more expensive. But it makes sense to use what we have whilst we’re so dependent on gas.”
His article, titled “My plan to safeguard Britain’s energy supplies”, only briefly mentioned the North Sea and stressed the importance of “reduc[ing] our dependency on gas”.
He continued to set out other potential steps for increasing energy security and bringing down bills, including building nuclear efficiently, cutting energy waste, reforming the electricity market, rolling out domestic renewable generation and breaking the link between gas and electricity that “lets global chaos dictate our prices”.
In a follow-up interview with Jackson in the Independent, which emphasised these alternatives, he added that the UK was “deluding” itself if it thinks it can “get enough out of the North Sea and in a market where the price is set internationally”.
For his part, Maier clarified on LinkedIn that he was a supporter of a “ managed energy transition” making use of all available energy sources, but adding that this includes “the end game being mostly renewable energy generation”.
He also explicitly rejected the notion that more North Sea oil and gas would bring down bills, noting: “It doesn’t; indeed, energy costs are rising at this very moment because of fossil fuels.” Again, this mirrors the view expressed by government ministers.
Maier also subsequently pushed back against the media coverage of his original comments, writing in a follow-up post on LinkedIn that the claim he was pressuring Miliband over North Sea drilling was “wrong” and that he is “fully supportive of the government position”. He added:
“I see this as consistent with an ‘all energy’ approach to the transition. That the end game is renewables and that we need to give supply chain companies enough time to transition. I have said this numerous times in many speeches and posts here.”
FALSE: ‘The UK is the only country in the world banning new oil and gas licenses’
On LinkedIn, Conservative politician and shadow energy secretary Claire Coutinho claimed that the “UK is the only country in the world banning new oil and gas licenses”.
Her comment was made in response to a post about Denmark, which, in 2020, made a landmark decision to stop issuing new oil and gas licences and end all fossil-fuel extraction by 2050.
The post noted that Denmark is now considering “extending one or more production licenses” in the Danish North Sea, in response to the energy crisis.
However, as Coutinho surely knows, this is not the same as issuing new licences – and is more comparable to Labour’s move to allow some additional “tieback” drilling at existing fields, announced in 2025.
Denmark and the UK are not the only countries to end new oil and gas licences. Other nations to do so include Ireland, France, Portugal and Colombia.
In fact, there is an international coalition of nations that have pledged to end new oil and gas production, known as the Beyond Oil and Gas Alliance (BOGA).
This group is helping to convene the first meeting of nations that want to take immediate action to phase out fossil fuels, which is taking place in Santa Marta, Colombia, in April. Around 40-80 nations are expected to attend.
Carbon Brief understands that the UK will have a senior representative at the conference.
Despite showing its support for BOGA, the UK is currently not a member. A senior official once told Carbon Brief that this is because the UK does not currently meet the required end date for stopping all fossil-fuel production.
MISLEADING: ‘With new North Sea licences would come thousands of jobs’
Addressing parliament in March, Nigel Farage, the leader of the hard-right, climate-sceptic Reform UK party, claimed that with new North Sea oil and gas licences “would come thousands of jobs”, according to the Herald.
As noted above, the issuing of new exploration licences would only make a small difference to future production in a basin that is in irreversible decline.
Official statistics show the decline of the basin caused direct jobs in oil and gas production to fall by a third between 2014 and 2023. Indeed, according to the government, more than 70,000 jobs have been lost in the last decade alone.
This decline has occurred despite the previous Conservative government, which was in power from 2010-24, holding six new licensing rounds and issuing hundreds of new licences.
The Norwegian oil-and-gas company Equinor has claimed that, if approved, its large oil project, Rosebank, could create up to 1,600 jobs while at the height of its construction phase. (Rosebank has a licence, but has not yet obtained final consent from the government.)
However, analysis by the North Sea non-profit Uplift says that this figure is “inflated” and that the project would only create 255 jobs over its lifetime.
As part of its “North Sea future plan” announced in 2025, the current Labour government has pledged to establish the “North Sea jobs service” – a national employment programme offering support for oil and gas workers seeking new opportunities in clean energy, defence and advanced manufacturing.
However, campaigners have warned that the plan does not go far enough.
In 2023, the UK’s Climate Change Committee (CCC) published an analysis of how jobs might change as the country strives for its legally binding net-zero target.
Its review of available data suggested that the gradual phase-down of high-emitting sectors, such as oil and gas production, could lead to there being 8,000-75,000 workers “whose jobs cannot continue in their current form”. (It notes that the wide range is due to “much uncertainty in these estimates”.)
But it added that this would be outweighed by “extensive job creation”. It estimated that there could be between 135,000-725,000 new jobs created by the transition to net-zero, in sectors such as renewable energy generation, retrofitting and electric vehicles.
This job creation is not “guaranteed” and is dependent on the government implementing measures to support and upskill its workforce on the journey to net-zero, the CCC noted.
A report published this week by the Renewable Energy Association, the UK’s largest renewables trade body, found that jobs in renewable energy in the UK now outstrip those in oil and gas.
According to the figures, there were 145,000 jobs in the renewable energy sector in 2025, compared with 115,000 in oil and gas.
MISLEADING: North Sea drilling ‘would secure a rush of revenue into the Treasury’
One common argument in favour of more North Sea drilling is that the sector provides an important source of tax revenue for the government.
An editorial in the climate-sceptic Daily Telegraph claimed that “tapping” new North Sea oil and gas “would not resolve the problem of high energy prices”, but would “secure a rush of revenue into the Treasury and provide households and businesses struggling under current circumstances with a helping hand”.
The tax revenue argument is often made by North Sea proponents who try to position themselves as being even-handed and moderate, as illustrated in recent columns in the Guardian and Observer.
However, the idea that new projects would usher in significant revenue is highly misleading.
The Office of Budget Responsibility (OBR), the UK’s independent fiscal watchdog, in March forecast that total UK oil and gas venues are expected to fall from £6bn in 2024-25 to just £0.1bn by 2030-31. (This is at baseline prices that do not consider the current energy crisis.)
Part of this decline comes from the expected end of the windfall tax, a levy first introduced by the Conservative government in 2022 in response to soaring oil-and-gas company profits fuelled by the end of Covid restrictions and Russia’s invasion of Ukraine.
(Many proponents of North Sea oil and gas have repeatedly called for an end to the windfall tax, while also frequently talking up the tax benefits from oil-and-gas production.)
However, the downgraded OBR forecast also reflects the decline of production in the basin as resources dry up, a shrinking tax base and falling prices, says Daniel Jones, head of research, policy and legal at the campaign group Uplift. He tells Carbon Brief:
“Even the windfall receipts generated during a genuine price crisis are temporary and price-dependent. At normal prices, the basin contributes very little. The structural decline continues regardless of the spike.”
As old oil and gas assets reach the end of their lives, the companies behind them are able to access significant tax relief for decommissioning costs, “further reducing the net contribution to the public finances”, says Jones.
(In some years, this tax relief has meant that far from being a source of revenue, certain oil and gas companies have been paid money by the exchequer.)
In addition, new developments “tend to be smaller and more expensive than the fields they replace”, Jones says, leading to the government offering large tax deductions for exploration, drilling and construction costs from 2014 onwards. He continues:
“These deductions can wipe out any taxable profit for years, meaning the Treasury collects nothing until investment costs have been fully offset. By the time a new field generates net tax receipts, it may be well into its production life – if prices and production hold up long enough to get there at all.”
An analysis by Uplift and NGO WWF Norway in 2025 found that the Rosebank oil field currently seeking development consent from the government could, in a “base-case scenario”, lead to £258m in net losses for the UK, due to the reasons set out above.
FALSE: Ed Miliband is an ‘anti-North Sea’ climate change ‘fanatic’
A huge amount of the criticism of the UK government’s position on North Sea oil and gas has been personally levelled at one man: Ed Miliband.
The energy secretary has been repeatedly labelled by opposition politicians and their media allies as “dangerous” and a “fanatic” with a “cult-like conviction”, because of his reported opposition to more drilling in the North Sea.
Miliband’s Conservative counterpart, Claire Coutinho, wrote in the Daily Telegraph:
“As the world gets more dangerous, [Miliband’s] anti-North Sea fanaticism is making Britain weaker and poorer.”
As with much of the criticism aimed at Miliband in right-leaning media, these attacks are often highly personal. The Sun’s US editor-at-large, Harry Cole, referred to Miliband as a “Greta [Thunberg]-loving Marxist, who has never seen a market he doesn’t want to destroy”.
In fact, Miliband is simply the energy minister in a government that has explicitly prioritised climate policies and transitioning away from fossil fuels.
Labour’s 2024 manifesto for the general election in which the party won an overwhelming victory and, hence, mandate stated:
“We will not issue new licences to explore new [North Sea] fields because they will not take a penny off bills, cannot make us energy secure and will only accelerate the worsening climate crisis.”
While the government has repeatedly ruled out new licences, it is considering approving several new projects at sites that have already received licences, but not consent to begin development.
It has also announced new “transitional energy certificates”, which will allow new oil and gas production at or near existing sites.
As for Miliband, his views are far more moderate than the “fanatical” ones portrayed by his detractors.
The energy secretary has been clear that he expects the UK to continue producing oil and gas even as it transitions to net-zero, writing in a recent Observer article:
“As we build our clean-energy future, North Sea production continues to play an important and valuable role, which is why we are keeping existing oil and gasfields open for their lifetime.”
Arguing against more expansion, Miliband noted that the North Sea is a “maturing basin” and that “new exploration licences are simply too marginal to have a meaningful impact on levels of oil and gas production”.
The post Factcheck: Nine false or misleading myths about North Sea oil and gas appeared first on Carbon Brief.
Factcheck: Nine false or misleading myths about North Sea oil and gas
Anuradha Barua, Aakriti Wanchoo and Swapan Mehra are from Iora Ecological Solutions, a New Delhi-based company focused on nature-based solutions, climate action, conservation and environmental policy.
When Rojo Neog’s village in northeast India was hit by a power cut in July, he headed out to buy candles. Three days later, his body was recovered – swept away by surging floodwaters. His niece said the water had risen from knee- to neck-level in about half an hour.
The devastating floods highlight how climate risk across India is becoming harder to confine to a season or a disaster bulletin. Just weeks before the disaster in Assam, authorities in Mumbai rationed water as reservoir storage fell to just over 10%.
India does not lack warnings about climate risk. The more difficult task is making sure money, institutions and communities are ready to act before those warnings become disasters. Adaptation should not be just an obligation once a crisis has arrived, but an investment made while there is still something to protect.
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Bonn climate talks end in “gridlock” on adaptation and emissions-cutting
Splits between developed and developing countries over finance and science held back progress on key areas of climate action, leaving disappointment and much work for COP31
As governments head towards COP31 in Antalya this November, India should push not only for more adaptation finance, but for finance that arrives earlier and can be traced to outcomes on the ground.
That is the gap India needs to close if we wish to become truly resilient in the face of the changing climate. Money must move with risk, institutions must know what to do before an emergency is declared, and long-term spending must reduce vulnerability before it becomes loss.
India’s adaptation disconnect
This year the disconnect has become painfully clear in Assam, where more than 100 people have died due to the flooding, with nearly 140,000 people across seven districts affected. More than 450 villages remain inundated, while some 49,000 people are taking shelter in relief camps after losing everything.
No financing mechanism can stop a river from rising. But timely measures can change what happens before it does. If forecasts and river levels triggered financing before the water arrived, authorities could position boats and stock shelters, and evacuate people where needed, while families could move cattle, seed, medicines and documents before roads disappeared.
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India already has much of the information needed to address climate change. High-risk states and districts should agree in advance which local thresholds trigger action, who is responsible and how funds will be released, so officials do not have to negotiate responsibility and budgets from scratch once risk becomes an emergency.
Linking community know-how to financing
Our work in Majuli, a river island district in Assam, shows why this matters.
Across 64 villages, communities helped identify flood and erosion risks, assess their capacity to respond, and to develop resilience measures with indicative budgets and possible funding sources.
Communities often know what would help; the harder task is connecting that knowledge to institutions and finance that can act on it.
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Public health offers an example of how systems can adapt as risks change. In New Delhi, vector-control workers who once prepared for a defined “dengue season” now remain on alert throughout the year, using surveillance and hotspot mapping to identify risks earlier.
The next step is to make these systems more predictive by integrating climate forecasts into public health planning.
India needs sustained investment in drainage, health systems, wetlands, water security and climate-resilient agriculture. Some will remain public responsibilities; others, including water reuse, efficient irrigation, resilient cold chains and risk-proofed infrastructure, can generate savings or revenue and attract private capital if projects are prepared well.
The economic case for adaptation is not always about generating new revenue. Often, it is about avoiding future costs. Flood shelters, public-health preparedness, early-warning systems and support for the poorest households will still need public or grant finance. The point is to match the finance to the risk rather than treat adaptation as a single financing problem.
Rising disaster bill shows cost of inaction
India is already spending heavily on adaptation, with related expenditure reaching 5.6% of GDP in 2021-22. Yet tracked adaptation finance was only about $15 billion annually, almost entirely from domestic public sources, against estimated needs of about $100 billion a year through 2030.
Internationally, the shortfall is wider: developing countries may need $310 billion-$365 billion annually by 2035, compared with just $26 billion in international public adaptation finance in 2023.
For governments repeatedly paying for flood, droughts and heat relief, the cost of inaction can quickly exceed the cost of building resilience, though not all the costs of inaction appear neatly on a balance sheet.
In floodplain landscapes such as Assam’s Kaziranga National Park, animals move towards higher ground every monsoon as the floodplain fills, crossing roads and leaving the park in search of safety. During the 2024 floods, 215 animals died, including 13 one-horned rhinos.
Development plans in such sensitive landscapes must leave room for water, wildlife and communities to move safely. A wetland may not generate monetary revenue, but the floodwater it stores has real value. The cost of losing that capacity may only become visible when the next flood arrives.
Comment: Climate adaptation in Africa needs investment, not imported solutions
Success should not be measured only by how quickly relief follows a disaster. It should also be measured by what never had to be replaced: people and animals moved before the water rose, seeds kept dry, medicines waiting at the shelter, a wetland that still had room to hold water, and a family that could leave while the road was still open.
Adaptation becomes an investment when it preserves those choices before they disappear.
The post India needs climate adaptation cash to be an investment, not a quick fix appeared first on Climate Home News.
India needs climate adaptation cash to be an investment, not a quick fix
The African continent’s hopes for a legally binding agreement to combat drought have been dashed again, as UN land restoration talks in Mongolia passed the issue onto the next set of talks in Egypt in two years’ time.
For over a decade, Africa has pushed for a UN protocol on drought risk management that would acknowledge drought as an issue requiring a regional and global – not just a national – response, potentially paving the way for more finance to help ensure water is available when drought hits.
A formal protocol would enable countries to transition from reacting to drought once it hits to “a proactive enabling mechanism to address drought and its effects such as migration”, said a Tunisian negotiator on behalf of the African Group of countries last week. Once land is regularly too dry and infertile to grow crops or graze animals, people often leave to seek a living elsewhere.
But this effort to adopt a protocol, led by Africa, has been resisted at successive land restoration COPs under the UN Convention to Combat Desertification (UNCCD), mainly by developed countries, which argue that a legally weaker alternative – a framework – would be faster and cheaper to set up.
Governments at the previous COP in Saudi Arabia in 2024 failed to reach agreement despite talks running past midnight, while this year’s saw African officials coordinate a walkout from negotiating rooms on Wednesday morning, according to two sources at the talks.
Drought deal delayed until 2028
The IISD’s Earth Negotiations Bulletin, a non-governmental organisation which unlike the media is allowed to watch and report on closed-door talks, said a call to suspend negotiations on Wednesday showed negotiations had reached “boiling point” and “made some jaws drop”.
Negotiations resumed after a lunchtime meeting with the Mongolian COP presidency although governments were only eventually able to agree that they could not find consensus in Ulaanbaatar and should resume talks on an instrument to deal with drought in 2028.
Christine Colvin, WWF’s head of freshwater policy, told Climate Home News that, with droughts hitting from Honduras to the English region of Hampshire, something concrete – whether a protocol or a framework – is needed urgently “rather than the can being kicked down the road for another two years as will now happen with the protocol procrastination”.
But, in a closing press conference on Friday, the Mongolian minister presiding over talks celebrated that governments had reached consensus on several “contentious” issues and that agenda items blocked at this year’s COP17 would be put on the agenda for COP18 in Egypt.
US blocks agenda items
Other agenda items that divided countries were on measuring land degradation’s effects on women, enhancing the involvement of civil society and women in land COPs, and the UNCCD working more closely and effectively with the UN’s climate and nature conventions.
On the COP’s opening day two weeks ago, the US representative said the Trump government objects to these agenda items “on their premise and no amount of negotiation will allow us to join consensus on these items. As such we request that they be struck from the agenda at which time we will then be able to approve it, saving us valuable negotiating time.”
A US State Department spokesperson later told Climate Home News that the US wants the UN “to get back to basics by refocusing on its core mandate, eliminating overlap, and reducing competition for scarce resources”.
The spokesperson added, “that means prioritising the concrete work member states created [the UN] to do – rather than diverting limited time, attention, and resources toward social and political agendas, including gender-related initiatives.”
On COP’s first day, the European Union and Brazil pushed back against the blocking of these agenda items, with a Brazilian negotiator saying his country attaches “great importance” to them. But the Mongolian presidency directed governments to adopt the rest of the agenda without the controversial items, which were discussed privately with countries throughout the two weeks.
An EU statement, read out later by Irish minister Timmy Dooley, accused “some parties” (meaning national governments) of having adopted a “less constructive approach” and preventing “discussions on important matters from even commencing”.
The agenda items the US refused to engage with were never discussed and were only placed onto the agenda for the next COP on the last day. Those talks will take place in Egypt in two years’ time, with Donald Trump due then to be in his last year as US president.
No restoration without women
The blocking of the gender agenda item has stymied attempts, agreed on by governments at the last COP, to develop gender-specific indicators for the UNCCD’s next overall framework and to facilitate more women delegates at COPs. Women made up only about a quarter of delegates to COP15 in 2022, UNCCD analysis with the latest data shows
Criticising the move to keep gender off the agenda, the EU said in a statement that it welcomes “the attention being given at COP17 to women pastoralists and herders, recognising their contribution to sustainable land management and resilient rural livelihoods”.
The head of the UNCCD, former Egyptian environment minister Yasmine Fouad, said on Friday that “regardless that the agenda item was blocked”, she was proud that she and COP17 President Batmunkh Battsetseg had led the COP as women and attended the gender caucus (a meeting of groups supporting women at the talks).
“Without the women,” she told the closing press conference on Friday, “we will not be able to restore land, restore hope, restore life or restore even our children and grandchildren. And we will keep on pushing that agenda.”
The civil society agenda item aimed to allow NGOs to attend land COP negotiations, as they do at climate COPs, and included terms of reference for an Indigenous Peoples Caucus.
A representative of Indigenous Peoples told the COP’s closing plenary meeting that the group had “deep disappointment that the agenda of this COP has removed the dedicated space for indigenous peoples”. “We cannot restore the land while removing the voices of those who care for it,” she said.
On Tuesday, the UNCCD’s deputy head Andrea Meza was asked about Indigenous Peoples’ participation. She said that the blocking of “one agenda item” is “generating uncertainty in the progress” towards creating caucuses for Indigenous Peoples and for Local Communities within the talks.
Because of the “complex geopolitical situation” making it hard to obtain consensus, coalitions of the willing have become more important, she added.
Mining out, money in
Outside the formal negotiations, the summit was marked by a focus on the strongly Mongolian issues of the role played by pastoralists and rangelands like grasslands, as well as mining, in both degrading and restoring land.
Part of the conference was sponsored by Australian mining company Rio Tinto and its local partner Oyu Tolgoi. Their presence was protested by campaigners wearing T-shirts calling on the companies to “stop wasting drinking water” and to “get out of Mongolia”.
The UNCDD and others praised the success of the summit in raising more finance for land restoration. The COP saw institutions like the Asian Development Bank and Global Environment Facility pledge money to combat land degradation, with the UNCCD estimating that $645 million of new commitments were made.
An estimated $355 billion a year is needed through 2030 to meet global land restoration commitments, compared with around $77 billion currently invested. Private finance accounts for only around 6% of global investment, according to the UNCCD.
UNCCD chief scientist Baron Orr told a press conference that many of the announcements were public-private partnerships that use government money to “even the playing field” for companies that want to protect land, in a bid to ensure they are not disadvantaged compared with those that do not.
Such partnerships are a “huge opportunity”, he said, especially as “we’re not in a moment of public finance – public finance is tight in every country.”
The post Despite African walkout, fractious land COP ends without drought deal appeared first on Climate Home News.
Despite African walkout, fractious land COP ends without drought deal
Burdened by rising fuel import costs and an “ocean crisis” of record-breaking heat, Pacific island nations are seeking to build support for a new regional fund ahead of COP31, intended to channel investment into renewable energy, community resilience and ocean protection, experts said.
Leaders from the 18-member Pacific Islands Forum (PIF), including Australia and New Zealand, are expected to issue a call for global pledges to the Pacific Resilience Facility (PRF) at a high-level meeting this coming week in Palau, seeking to build a new model for financing climate action.
The new regional fund was formally launched in May this year and is meant to “serve communities at a community level”, swiftly channelling investments for their projects on the ground, according to Fiji’s assistant minister for foreign affairs, Lenora Qereqeretabua.
“We are expecting pledges for the PRF, and these funds will go to communities that apply,” she told journalists at an online briefing. “We have organised it in such a way that it makes our application processes much, much easier than applying for global funding.”
Qereqeretabua added that she expects that PRF funds will be “utilised by communities to protect themselves from climate change and the effects of climate change.”
The Pacific Islands Forum meeting is expected to shape the region’s priorities ahead of this year’s pre-COP, hosted by Fiji and Tuvalu, and COP31, which will be co-led by Australia and Türkiye.
At COP31, a dedicated session on the climate finance needs of small island states will seek to drive pledges into the PRF. The fund has so far received about $172 million in capital – with about $67 million coming from Australia – and aims to close the year with $500 million.
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Ocean heat and fossil fuel shocks
Leaders from the Pacific will meet in Palau from Sunday amid an “ocean crisis” of record-breaking ocean heat caused by this year’s “super El Niño”, according to Kevin Chand, Pacific ocean policy director at National Geographic’s Pristine Seas conservation project.
Leaders at the PIF are expected to put forward commitments towards new marine protected areas, which will be key for shielding ecosystems from future climate extremes, Chand said. The forum is expected to issue a statement on the need for ocean action at COP31, and announce commitments towards reaching the global goal of protecting 30% of the planet’s land and sea ecosystems by 2030.
Rising ocean heat could lead to food insecurity and lost government earnings in the region, as key fish stocks like tuna start migrating away from their coastline in search of colder waters, said Coral Pasisi, director of climate change and sustainability at the Pacific Community (SPC).
Climate shocks are deepening existing economic pressures, as Pacific nations have spent up to a quarter of their GDP on fossil fuel imports due to the war in Iran, according to a recent report by the University of New South Wales (UNSW) in Australia.
Wesley Morgan, one of the study’s authors, told journalists that partner nations “ought to be putting their money where their mouth is”, and should support the energy transition in the Pacific by covering the upfront costs of switching from polluting diesel to solar power, batteries and electricity grid upgrades.
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Given the increase in climate-related shocks and sea-level rise, the PIF should also mention the need to phase out fossil fuel extraction and consumption, said Sindra Sharma, international policy lead at the Pacific Islands Climate Action Network (PICAN).
Last year’s COP30 failed to deliver a global roadmap on transitioning away from fossil fuels, which led to a group of countries – including several Pacific island nations – pursuing their own fossil fuel phase-out summit in Santa Marta, Colombia. Next year’s conference will be hosted by Tuvalu and co-chaired by Ireland, which should also receive backing from the PIF, Sharma said.
Both the chairs of the Santa Marta coalition and the Australian COP31 co-presidency have vowed to continue a push for this topic to be discussed at COP31.
New fund to test allies
As local communities in the Pacific struggle to access global climate funds, the PRF’s planned model for quick, direct disbursements has “very solid and good” intentions, Sharma said, but it will need political and financial backing from donor countries.
“The proof is going to be when the fund actually starts operating and delivering to communities,” she added. “If there is too much bureaucracy in being able to access the funds, for example. These things will have to be scrutinised.”
The facility aims to deliver funds in two categories: one for climate adaptation and “disaster resilience”, and another for social and community resilience that includes areas like community capacity-building, education, data analytics and financial management, among others. It will launch its first call for proposals at the PIF.
Morgan added that Australia will need to “leverage global interests” so that funding is directed to the Pacific Resilience Facility “or else the Pacific won’t be able to trust Australia as a partner”. The country ratified the PRF treaty in May, triggering its entry into force.
“The perception [of Australia] in the region is genuinely divided, and it’s worth being honest about it,” Sharma said, adding that the pre-COP31 in Fiji, which is usually limited to a technical space for negotiations, will determine how meaningful Australia’s advocacy for the Pacific can be.
This time, Pacific nations want to use the pre-COP in early October as an opportunity to demonstrate the challenges their largely low-lying islands face and to advocate for their political priorities, including a renewed global effort to limit global warming to 1.5C by cutting emissions faster and deeper. World leaders are due to visit Tuvalu to experience the frontline of rising sea levels, although Australia and Fiji have yet to confirm who will attend.
“In Bonn, Australia was largely missing on the negotiated outcomes that we so urgently need to see. It’s not enough to get Pacific priorities on the agenda. Agenda placement is not delivery,” Sharma added.
The post Pacific islands seek backing for new regional fund ahead of COP31 appeared first on Climate Home News.
Pacific islands seek backing for new regional fund ahead of COP31
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