The UK government has announced a new North Sea drilling strategy designed to honor its commitment to stop issuing new oil and gas licences while still permitting a small amount of extraction from existing fields.
Energy Secretary Ed Miliband returned from the Cop30 climate summit in Brazil reaffirming the government’s stance: the UK remains on track to be the first major economy with a 1.5C-aligned “no new licences” position. However, the policy now includes a mechanism for drilling near existing fields using “transitional energy certificates.”
These so-called tiebacks allow limited new fossil fuel extraction where infrastructure already exists, which officials argue will keep fields profitable and secure during their operational lifespan.
Environmental Groups Call for a Stronger Clean Energy Transition
Campaigners welcomed the symbolic end of traditional licensing but warned that the new model risks slowing the transition to renewables. Leaders from the climate advocacy group Uplift said the North Sea is already past its peak productive years and that further extraction will not meaningfully support long-term energy security or jobs.
Analyses from Uplift and the North Sea Transition Authority estimate that areas around current fields hold only small remaining resource—approximately 25 million barrels of oil and 20 million barrels of gas equivalents. By contrast, the proposed Rosebank development could total close to 500 million barrels over its lifetime.
Environmental organizations are urging the government to prioritize investment in green jobs and phase-out plans instead of incremental extraction.
Fuel Duty Freeze and New EV Charge Spark Policy Debate
Alongside the drilling strategy, the autumn budget froze fuel duty again until next September. Although originally designed to rise annually to encourage greener travel, the tax has been unchanged since 2010. Research shows this has reduced its real value significantly and has cost the government more than £130bn.
But the budget also introduced a 3p-per-mile tax on electric vehicles and plug-in hybrids. Analysts warn this could contradict other policies intended to push consumers toward cleaner transport options, potentially slowing EV adoption.
Think tanks note that the freeze on fuel duty primarily benefits higher-income households, who are more likely to drive larger cars, while the poorest benefit least. Since domestic transport accounts for around 28% of UK emissions, critics say stronger incentives are needed for EV and public transport uptake.
Changes to Energy Bills and the Shift of Green Levies
In another policy shift, the government will move green levies off household energy bills and into general taxation—an approach experts say will save the typical household roughly £150 per year.
While praised for easing costs, critics warn that scrapping the ECO energy upgrade scheme will hit the poorest hardest and may weaken support for insulation and other efficiency programs.
Experts at the Centre for Net Zero argue that the government’s climate-driven policies must not undermine programs that permanently lower energy consumption, especially for low-income households.
Windfall Tax on Oil and Gas to Stay Until 2030
Despite lobbying from fossil fuel firms, the government confirmed that the windfall tax introduced in 2022 will remain until at least 2030. It is projected to bring in £2.7bn next year, though revenue is expected to fall sharply as North Sea reserves decline.
Environmental groups say the decision shows the government remains committed to long-term clean energy goals, even while balancing short-term energy demands.
Conclusion: Balancing Climate Promises With Energy Security
The new North Sea drilling strategy reflects a political tightrope: fulfilling a flagship promise to end new licences while still allowing limited extraction during the transition away from fossil fuels. Campaigners say the next step must focus on workers, communities, and accelerating clean energy investment to avoid prolonging dependence on oil and gas.
