Jo Blackman, SERA Executive Member and East London Councillor in Labourlist
Keir Starmer’s successor faces many pressing decisions that will determine the future direction of both Party and country. At the top of the list is a critical climate test – whether to approve the Rosebank oil field, the UK’s largest undeveloped oil field.
As Labour’s affiliated environmental organisation, SERA has a proud history of campaigning to phase out oil and gas production and we strongly welcomed the 2024 manifesto commitment not to issue any new oil and gas exploration licences. This commitment reflects a Labour Party that is serious about climate leadership, understands the economics of North Sea oil and gas versus the opportunities in home-grown clean energy for communities and workers, and grasps the science that calls for bold action if we are to limit global warming to avoid dangerous climate breakdown.
Yet, as the result in the Aberdeen South by-election shows, the decision on Rosebank is not easy politically. In addition to a strong oil and gas lobby, the Conservatives have shown how far they have moved away from the proven economics and science of the green transition to fully embrace misinformation and political opportunism to win seats. In Parliament, Labour MPs are now regularly having to attend Conservative debates on North Sea oil to ensure the facts about the sector are heard.
Anyone who has looked in any detail at the North Sea basin can tell you that it is in decline. Long gone are the prospects of endless profits, jobs and tax revenues. Despite multiple licences granted under the last Tory government, jobs in North Sea oil and gas industry more than halved in the last 10 years. On the other hand, as the CBI’s Report recently showed, the clean energy sector is booming and is where future growth lies. Clean energy already generates around £105bn in Gross Value Added and supports 1.1m full-time equivalent jobs, spanning energy, manufacturing, construction, engineering and professional services, as well as supply chain activity. Critically for a new Labour leader who cares about the regions, the sector is also one of the most geographically distributed with high-quality and well-paid jobs to level up our communities.
This week’s record-breaking temperatures are a stark reminder of the reality of climate change and the climate impacts of Rosebank are very real. Rosebank would emit 254 million tonnes of carbon dioxide, equivalent to 70% of UK annual emissions, if its oil and gas are extracted and burnt, pushing us further away from the safe 1.5C warming limit.
On the other hand, approving Rosebank would do nothing to bring down consumer energy prices or help energy security. The UK does not own Rosebank or its oil. Oil from Rosebank will be sold to the highest bidder on the international market, while its profits will pass primarily to the Norwegian energy giant Equinor. The Tory claim that drilling in the North Sea will generate more tax revenue is also flawed. As well as receiving significant tax breaks, oil companies are skilled at exploiting tax loopholes to ensure most profits end up back with them.
As Mayor, Andy Burnham made much of his environmental credentials and committed to moving away from fossil fuels last year when he advocated for a Fossil Fuel Treaty at an event with Massive Attack on the rooftop of the Greater Manchester Combined Authority HQ. This ability to bring communities together and unite them on issues is part of his appeal to Party members and the wider country who are waiting to see if he can deliver nationally.
If he wants to remain popular, then tackling the cost-of-living crisis must be a priority. Further backing clean energy is the only way to prevent skyrocketing consumer energy prices. The conflict in Iran is the latest reminder of why that matters: global volatility continues to leave British households exposed to surging oil and gas prices, while clean energy strengthens our energy security and protects consumers from international shocks.
Andy must also deliver on a robust transition policy to support workers – working with unions and the communities impacted by the shift away from fossil fuels to ensure they benefit from new opportunities in the green economy and de-commissioning. Whilst also scaling up measures that help reduce our reliance on oil and gas like heat pumps, energy efficiency and electric vehicles.
At our AGM earlier this month, SERA called on future Labour leadership contenders to reject the application for oil and gas at Rosebank with our youth wing – Young SERA – passionately making the case for their generation that Labour must hold the line on this issue.
Rejecting Rosebank is the right thing to do for energy affordability and security, for our economy, communities and workers and for future generations. Ditching Rosebank and taking forward the legislation and policies needed to ensure our economy and energy system is fit for the future is the best way for a new PM to show commitment on climate and to future generations.