UK Issues New Environmental Guidance on North Sea Drilling

Ministers must now assess carbon emissions when approving existing oil and gas projects

The UK government has issued updated environmental guidance requiring the assessment of both economic benefits and carbon mitigation measures—including downstream emissions and carbon removal efforts—when approving North Sea oil and gas developments.

The guidance, introduced in response to a Supreme Court ruling that halted licenses for major fields like Jackdaw and Rosebank, ensures that existing projects consider full lifecycle emissions and cannot rely solely on purchased carbon credits.

While no new licenses will be issued, current producers like Shell, Equinor, and Ithaca Energy must amend applications and await ministerial decisions in the autumn under stricter climate-aligned criteria.