UK backs North Sea oil 🛢️ despite net-zero pledges

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Hello!

The United Kingdom is in focus this week after it committed to granting hundreds of licenses for North Sea oil and gas extraction, drawing criticism from environmental campaigners 📣.

Prime Minister Rishi Sunak confirmed plans for more than 100 such licenses, which attracted bids earlier this year, and said hundreds of future licenses could also be granted.

Britain has a target to reach net-zero emissions by 2050, but Sunak said even by this date the country is expected to get more than a quarter of its energy from oil and gas 😬. 

Dividing line

British efforts to reach the net-zero target have become a sharp dividing line between the governing Conservatives and the opposition Labour Party ahead of an election expected next year, with Sunak saying the target should be met in a "pragmatic" way that does not add to household bills 🧾.

The government argues that stemming the decline in domestic supply would reduce the carbon footprint when compared with an alternative option of importing liquefied natural gas, however it is facing legal challenges from climate activists and green groups 💚 who warn increasing fossil output is at odds with the goal.

Carbon capture and storage

Sunak also announced fresh support for two carbon capture and storage (CCS) clusters in Scotland and northern England.

The plans were welcomed by energy companies, including Shell and Harbour Energy, who are among the partners in the Acorn CCS project which will gain so-called Track 2 status and can now enter into commercial negotiations with the government 🤝.

Britain aims to use CCS technology, which involves capturing planet-warming carbon from industrial smokestacks before it hits the atmosphere and storing it underground, to hold 20 million to 30 million tonnes of CO2 by 2030.

There is no large-scale or commercial CCS project operating in Britain currently, and the government has faced criticism for slow progress on its deployment.

Mike Childs, head of policy at Friends of the Earth said the CCS announcement was an attempt to put a green gloss on the new licenses. "CCS won’t capture all the climate pollution caused by burning fossil fuels," he said.

Is the technology proven?

CCS works by having the CO2 separated from other gasses produced in industrial processes or during power generation.

Once captured it has to be compressed and transported to sites for storage often via pipelines. After that, it has to be injected into rock formations underground - typically 1 km (0.62 mile) or more under the ground - for storage for decades 🚛.

CCS has been in operation since the 1970s with more than 200 million tonnes of CO2 captured and stored deep underground globally, the Global CCS Institute says.

Many projects however have failed to deliver the carbon savings promised 🤷.

The world's largest commercial CCS project, Chevron Corp's Gorgon project in Australia has struggled to hit capacity.

In Conversation

Helen Salvin, associate director at UK-based PR Agency PHA Group, shares her thoughts on the 'race to the bottom' of the UK green agenda:

“Both the Labour and the Tory party have lost their nerve on the green agenda.  

Spooked by last month’s by-elections, Leader of the Labour Party Keir Starmer has rowed back on supporting the British capital's Ultra Low Emission Zone (ULEZ) expansion — a policy which has successfully reduced nitrogen dioxide levels in central London by 46%. 

Meanwhile, Conservative Prime Minister Rishi Sunak is signaling a pushback on the 2030 sales ban on new petrol and diesel cars. 

The Government’s net zero policy is becoming more unclear by the day. While pledging to ‘Build Back Greener’, the Tories appear willing to leverage a slower net zero roadmap to retain power. 

From scrapping deposit return schemes and green subsidies to reversing the ban on new petrol cars and the expansion of ULEZ, several net-zero policies desperately need reputational rehabilitation. 

We can’t underestimate the scale of the task. Net zero presents the biggest behavior change challenge in living memory, but consistency is key. Consumers won’t feel incentivised if their government isn’t sticking to the script. 

The Government must urgently align on key climate priorities and work to restore people’s trust in its net zero pledges. Consumer education is key, and increased investment is required to shift attitudes and influence meaningful action. 

Our time will be judged by how we handle this crisis. Power can’t be placed over the planet.”

ESG Lens

In Beijing's western suburbs, cars were swept away as relentless rain since the weekend transformed roads into rivers, killing at least two and trapping hundreds, despite an overnight evacuation of tens of thousands from their homes.

Hundreds of roads have become flooded in China's capital, with videos posted by state media showing half-submerged vehicles in Mentougou district pulled along by fast-moving torrents as the remnants of Typhoon Doksuri dumped record rainfall on the city of nearly 22 million

ESG Spotlight

Today’s spotlight shines a light on a group of animal rights activists who gathered near the Vatican in Rome, Italy, dressed in red capes and fake horns to urge Pope Francis to denounce what they see as the barbaric practice of bullfighting 🐂.

"Catholic Church: Silence is Violence! Denounce bullfighting," read a banner held up by the activists near the ancient Roman Castel Sant'Angelo fortress on the banks of the River Tiber, in view of St Peter's Basilica ⛪.

Since bullfighting events "are often held in honour of Catholic saints or during holy Christian celebrations, the Catholic Church can and must help end this abuse by publicly condemning bull torture in the name of religion," animal rights group PETA said in a statement.

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