Harder UK Target Make Sector Deal More Important: Upstream
UK upstream lobby group Oil & Gas UK has restated the significance of securing a sector deal, in light of a tougher new emission reduction target announced by the government December 4. Prime minister Boris Johnson raised the CO2 emissions reduction target by at least 68% by 2030, based on 1990 levels.
These ambitious new targets will see the UK commit to reducing emissions at a rate faster than any major economy and came the same day that Denmark announced the end of oil and gas production in its waters by 2050.
OGUK CEO Deirdre Michie described the new goal as "ambitious" and said it "reinforces the significance of securing a transformational sector deal for our changing sector. The UK offshore oil and gas industry has a vital role to play in supporting the UK to achieve the targets set out today. Through continuing to reduce our own carbon emissions, and by tapping into the expertise within our supply chain to develop solutions, we can help meet the country’s climate goals through developing critical solutions including carbon capture and storage and hydrogen at scale.
“This will help to unlock the full potential of this industry, including its world-class supply chain to deliver a green recovery which delivers our climate goals, supports jobs and enables our energy communities to adapt and thrive."
OGUK said it continued to work with the government on proposals for the North Sea transition deal while protecting domestic energy supplies, jobs and communities in a low-carbon economy.
The official 1990 baseline for the UK’s greenhouse gas emissions is 794.4mn metric tons CO2 equivalent. Increasing the official 2030 target from a 57% to a 68% reduction implies a total reduction of 540mn mt CO2e/yr, according to the Global Warming Policy Foundation.