London Daily

Focus on the big picture.
Friday, Mar 27, 2026

Climate change: UK government oil and gas subsidies hit £13.6bn since Paris Agreement, campaigners say

Climate change: UK government oil and gas subsidies hit £13.6bn since Paris Agreement, campaigners say

Tax breaks for decommissioning oil and gas infrastructure in the North Sea are being challenged in the High Court in December by campaigners, backed by groups linked with Paid to Pollute.

The UK government has handed the oil and gas industry £13.6bn in subsidies since the landmark Paris climate accord was signed in 2015, according to campaign group Paid to Pollute.

Its analysis of new OECD data claims that from 2016 to 2020 companies received £9.9 billion in tax reliefs for new exploration and production and £3.7 billion in payments towards decommissioning costs.

Tax breaks for decommissioning oil and gas infrastructure in the North Sea are being challenged in the High Court in December by campaigners, backed by groups linked with Paid to Pollute.

Mikaela Loach is one of three complainants challenging oil and gas industry tax breaks in court


One of the complainants, climate activist Mikaela Loach, told Sky News: "No one's calling for the tap to be turned off tomorrow - that's just industry scaremongering.

"The UK has enough oil and gas already in production to see us through this transition. We don't need any additional fossil fuel developments."

There are 18 UK oil and gas projects in the pipeline that, if approved, could enjoy these subsides, including the Cambo oil field north-west of the Shetland Islands.

In the Glasgow climate pact from COP26, countries including the UK committed to "phasing down" inefficient fossil fuel subsidies and reaffirmed their commitment to limit warming to 1.5C above pre-industrial levels.

To hit that target, the world must reach net zero emissions by 2050, which means there can be no new oil and gas developments after this year, the International Energy Agency (IEA) has warned.

The financial think tank Carbon Tracker has warned that the 1.5°C target means Cambo and at least four other proposed projects risk becoming stranded assets with little or no economic value.

The group's head of oil gas and mining, Mike Coffin, told Sky News: "Any organisation that is claiming alignment with the 1.5C goals of the Paris agreement, or Net Zero 2050, cannot simultaneously be supporting new oil and gas projects going ahead.

"Many projects - including for example Cambo - are potentially uneconomic, even under slower transition scenarios which result in warming in excess of 1.5 degrees."

Paid to Pollute acknowledges that its expanded definition of tax break differs from the government's, but says it does meet the criteria as set by the World Trade Organisation and the International Monetary Fund.

The UK Government, however, says it does not give any subsidies to fossil fuels, and follows the IEA's approach to phasing them out.

A spokesperson said: "No other significant oil and gas producing nation has gone as far as the UK in supporting sector's gradual transition to a low carbon future, as demonstrated by our North Sea Transition Deal.

"While we are backing the UK's oil and gas industry's transition to green energy, there will continue to be ongoing but diminishing need for oil and gas over the coming years while we ramp up renewable energy capacity, as recognised by the independent Climate Change Committee."

Newsletter

Related Articles

0:00
0:00
Close
Jaguar Land Rover Halts Production at UK Plant Amid Supplier Disruption
UK Police Reverse Position, Confirm Arrests Will Resume for Palestine Action Protests
UK Small Businesses Face Europe’s Steepest Cost Pressures, New Survey Reveals
US Envoy Urges UK to Proceed with King’s Visit Amid Diplomatic Sensitivities
FTSE 100 Drops Over One Percent as Middle East Tensions Weigh on Markets
UK CO2 Plant Set to Reopen as Authorities Move to Safeguard Supplies Amid Middle East Tensions
Trump Urges Stronger Defence Investment as He Questions Allied Naval Capabilities
New COVID Variant Detected in UK Raises Concerns Over Vaccine Effectiveness
FTSE Russell Moves to Standardise Free-Float Rules for UK and International Listings
HBO Max Launches in UK and Ireland, Marking Major Step in Global Streaming Expansion
UK Signals Readiness to Seize Russian ‘Shadow Fleet’ Vessels in Escalation of Sanctions Enforcement
Escalating Middle East Conflict Seen as Major Threat to UK Economic Stability
Early Challenges Mark Prince Harry and Meghan’s Australia Visit
UK Government Rejects Cover-Up Claims After Theft of Former PM Aide’s Phone
Cyprus Opens Strategic Talks with UK Over Sovereign Base Areas
UK Faces Risk of Sharp Inflation Surge Despite Stable Pre-Crisis Figures
UK Police Arrest Two Over Suspected Antisemitic Arson as Iran Link Investigated
UK Inflation Holds at Three Percent Ahead of Oil Price Shock from Iran Conflict
UK Fuel Prices Face Upward Pressure as Global Oil Trends Raise Cost Outlook
Girlguiding UK Sets September Deadline for Membership Policy Change Affecting Trans Participants
Germany and UK Accelerate Wind Power Expansion to Strengthen Energy Security
UK Moves to Ban Cryptocurrency Donations to Political Parties Over Foreign Influence Concerns
UK and Turkey Finalise Major Air Defence Agreement Worth Billions
Apple Introduces Mandatory Age Verification for iPhone Users in the UK
Diverging Views Emerge Over Meghan Markle’s Planned Australia Appearance
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
×