The former Tory government’s approval of the controversial Rosebank oil field was unlawful, a Scots judge has ruled.
A legal challenge by green campaigners to block multi-billion-pound drilling plans at the massive proposed development off Shetland has been upheld by the Court of Session in Edinburgh. It marks a huge victory for green groups who have long called for new fossil fuel projects in the North Sea to be ditched.
Activists including Greenpeace and Uplift said the decisions to greenlight Rosebank and also the Jackdaw gas field off the coast of Aberdeen had not given enough consideration to emissions created by burning fossil fuels at the planned sites. They argued the UK Government, then led by Rishi Sunak, and North Sea Transition Authority (NSTA) had acted unlawfully when granting consent to the projects.
Sunak’s government approved Shell’s proposals to develop the Jackdaw field in 2022, and cleared Equinor and Ithaca Energy’s plans to drill in the Rosebank field in September 2023. In a judgement published on Thursday, Lord Ericht said the decision to grant consent was unlawful, and ruled the consent should be “reduced” (quashed) and reconsidered.
It means if developers want to continue the projects, they’ll have to start the approval process again and produce new environmental impact assessments. Lord Ericht added no oil or gas should be extracted before a new decision on consent is made.
Rosebank is estimated by developers to contain about 300million barrels of oil, making it the largest untapped reserve in the North Sea. Analysts say it could be worth around £3.2billion to shareholders after tax following a £2.2billion investment, while Shell is planning to invest just over £1billion at Jackdaw.
Campaigners declared victory, with Philip Evans, senior campaigner at Greenpeace UK, saying: “This is a historic win – the age of governments approving new drilling sites by ignoring their climate impacts is over. The courts have agreed with what climate campaigners have said all along: Rosebank and Jackdaw are unlawful, and their full climate impacts must now be properly considered.
“Fossil fuels are an economic dead end. Now that the ball is back in the Government’s court, ministers have the opportunity to sort out the legal mess left by their predecessors.”
Tessa Khan, executive director of Uplift, said: “This is a significant win which means that Rosebank cannot go ahead without accounting for its enormous climate harm. The continued burning of oil and gas is why we are seeing more extreme weather like Storm Eowyn and flooding that have claimed lives and caused hundreds of millions of pounds in damage and clean-up costs, not to mention the devastation it’s causing in other countries.
“Most people are now joining the dots with endless oil and gas drilling and are worried about the future.”
Friends of Earth Scotland oil and gas campaigner Freya Aitchison said: “New oil is over – this signals the beginning of the end for fossil fuel production in the UK. Political attention must immediately turn to developing an urgent and fair transition plan for workers.”
Liz Murray, head of Scottish campaigns at Global Justice Now, added: “This is a huge milestone towards a liveable planet and away from polluting fossil fuels. Rosebank wouldn’t lower bills or give us more energy security, but it would boost the profits of big oil companies – and the UK public should not have to bear the costs of their tax breaks while our environment suffers.”
But developers vowed to press ahead with their plans. Norwegian state-owned oil giant Equinor, which is the lead partner on the Rosebank scheme, claimed it welcomed the ruling. A spokesperson said the firm was “pleased with the outcome which allows us to continue with progressing the Rosebank project while we await new consents”.
They added: “Rosebank is critical for the UK’s economic growth, with an estimated 77 per cent (£6.6billion) of total direct investment benefiting UK businesses. Equinor and its Rosebank JV partner, Ithaca, have already committed over £2.2billion on developing Rosebank – awarding vital contracts across the supply chain and employing personnel to deliver the work.”
A Shell spokesperson said: “We have spent more than £800million since the regulator approved Jackdaw in 2022. Swift action is needed from the Government so that we and other North Sea operators can make decisions about vital UK energy infrastructure.
“When operational, Jackdaw would provide enough fuel to heat 1.4 million UK homes, at a time when older gas fields are reaching the end of their production and the UK is reliant on imported gas to meet its energy needs.”
In his published opinion, Lord Ericht said: “Having considered all the circumstances of the case and the various public and private interests, I have reached the conclusion that the balance lies in favour of granting reduction. The public interest in authorities acting lawfully and the private interest of members of the public in climate change outweigh the private interest of the developers.
“The factors advanced by Shell, Equinor and Ithaca in respect of their private interest do not justify the departure on equitable grounds from the normal remedy of reduction of an unlawful decision. The decisions will be reduced, and can be taken again, this time taking into account downstream emissions.”
He said there was a public interest in having the decision “remade on a lawful basis” because of the effects of climate change. He continued: “The effect of the burning of fossil fuels on climate change and the lives of individual persons is now well recognised in law.”
A spokesman for the UK Government’s Department for Energy Security and Net Zero said: “The government has already consulted on revised environmental guidance to take into account emissions from burning extracted oil and gas to provide stability for industry, support investment, protect jobs and deliver economic growth. We will respond to this consultation as soon as possible and developers will be able to apply for consents under this revised regime.
“Our priority is to deliver a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations, which drives towards our clean energy future of energy security, lower bills, and good, long-term jobs.”
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