London Daily

Focus on the big picture.
Monday, Aug 24, 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
Prime Minister Andy Burnham to Give Ukraine Classified Storm Shadow Blueprints for Domestic Missile Production
UK Graduate Job Vacancies Plunge 45% to Lowest Levels on Record
Government Audit Reveals Pressure on UK Hospitality From Business Rates and Rising Costs
Kindertransport Survivor Prepares to Revisit European Sites Linked to Her Family’s Wartime Separation
Northern England Transport Operators Strengthen Contingency Plans as Travel Demand Rises
New Implant Trials Offer Treatment Prospects for Patients With Refractory Angina
South Wales Reviews Wildfire Response After Exceptionally Dry Summer
UK Treasury Prepares Autumn Fiscal Statement Amid Spending and Defense Pressures
Norfolk Records First Wild Beaver Births in More Than Five Hundred Years
Historic Portrait of Benjamin Disraeli Reported Missing From Parliament’s Art Collection
Five People, Including Police Officers, Killed in A66 Crash as Families Pay Tribute
Most English Secondary Schools Found to Fall Short of National Healthy Food Standards
UK Think Tank Says Productivity Growth May Be Stronger Than Official Data Shows
Reform Party Proposes Lower Social Housing Priority for Foreign-Born UK Citizens
UK Government Plans Business Rate Overhaul to Ease Pressure on Pubs and Hotels
New Daily Diabetes and Weight-Loss Pill Launches Across NHS Pharmacies in England
UK Graduate Job Vacancies Fall to Lowest Level in a Decade
UK Prime Minister Andy Burnham Visits Kyiv to Reaffirm Long-Term Military Support for Ukraine
Iranian Hackers Shut Down British Power Plant for Four Days in Landmark Cyber Attack
Novak Djokovic Reveals Relentless Self-Doubt and Rejects Retirement in New Documentary
Trump Imposes 50% Tariffs on Canadian Goods After Bilateral Trade Talks Collapse
First Bus Bars Unaccompanied Under-Sixteens From Evening Services in Stoke-on-Trent
Lithium-Ion Battery Fires Cost UK Waste Sector About One Billion Pounds a Year
Reform UK Proposes Lower Social Housing Priority for Foreign-Born Naturalised Citizens
UK Government Deploys AI Drones in Crackdown on Illegal Waste Dumping
EU Biometric Border Checks Cause Disruption for British Travellers and Freight Operators
UK Expands Voluntary Drug Treatment Programme for Sex Offenders to Twenty Prisons
CrossCountry Cancels Most Services After Major Power Failure at Control Centre
Met Office Warns El Niño Could Bring Severe Autumn Storms and Higher Food Prices
Resolution Foundation Says UK Productivity Growth May Be Stronger Than Official Data Suggest
Andy Burnham Proposes Giving Regional Mayors Greater Planning Powers
UK Government Overhauls Planning Rules to Accelerate Housing Near Transport Links
Russia Withdraws Ambassador to Britain and Warns of Retaliation Over UK Drone Supplies to Ukraine
Iran-Linked Hackers Blamed for Cyberattack That Shut Down UK Power Plant
Andy Burnham Pledges UK Support for Long-Range Missile Production in Ukraine
Australia Combines Indigenous Fire Knowledge With Satellite Tech to Combat Catastrophic Wildfires
Father and Son Jailed in Scotland Over £900,000 Airport Cannabis Smuggling Operation
UK Fraud Reports Surge Sevenfold as Criminals Exploit QR Codes in Parking Meters and Phishing Emails
Brighton Thrash Aston Villa in Four-Goal Opening Half as Manchester City Trail Bournemouth
Erin Patterson Appeals Triple Murder Convictions After Hotel Mixed Sequestered Jury With Prosecution
Bank of England Maintains Close Watch on Banks Amid Global Economic Uncertainty
Warm Weather and Tourism Support UK High Street Spending During Summer
Westminster Faces Continuing Political and Administrative Fallout From Epstein Files Release
UK Invests in Domestic Defence Drone Manufacturing to Strengthen Military Supply Chains
Around Five Million UK Households Face Higher Mortgage Payments by 2028
Bluetongue Virus Cases Rise Across England, Wales and Scotland
UK Government Holds First National Day for Victims and Survivors of Terrorism
Historic Summer Droughts Threaten UK Harvests and Put Further Pressure on Food Prices
UK Economy Holds Up in Second Quarter Despite Global Energy and Geopolitical Pressures
UK Opens National Artificial Intelligence Safety Testing Facility
×