North Sea Transition Deal: watch out for the sting in the tail

SourceEnergy Voice
CountryMiddle east

The North Sea Transition deal, announced on March 24, has given industry a clear statement of intent for the coming decade and beyond, but the energy sector would do well to prepare itself for the inevitable legal and regulatory consequences that follow. The landmark agreement, the first of its kind in the G7, is designed to safeguard North Sea jobs while keeping carbon neutral targets very much in the foreground of ongoing developments, but just how those safeguards will be implemented – and the consequences for failing to do so – have yet to materialise. While the deal signals positive intent towards reaching these ambitious targets, it will ultimately be the laws and regulations imposed on the sector that will shape its behaviour in real terms. The timing of the deal is also a factor. The UN Climate Change Conference, COP 26, set to be held in our neighbouring Glasgow in November, will mean the eyes of the world are very much on Scotland and its own efforts to tackle climate change, and there could well be a raft of announcements not just as a consequence of the conference itself, but also off the back of the Transition Deal. The UK is looking to more...