UK Energy Policy - Driving the Transition

UK ENERGY POLICY Driving the Transition

Figure 5: UKCS supply chain readiness for CCUS

Source: OGUK

The HMT net zero interim report also highlights the communities and workforce impacts of energy transition. Those impacts need to be carefully managed to guarantee the social acceptance of the energy transition. To support the world-class reputation that the UK oil and gas industry has established, there has been significant investment over the last few decades in developing the UK’s talent base. In order to deliver the UK’s net zero ambitions, there must be a similar concerted effort to both transition parts of the UK’s existing oil and gas workforce to new roles and attract and nurture the next generation of talent.

To accelerate the transformation of the supply chain and help it pivot, the Government should consider making funds available to prepare capabilities and invest in the resources required for net-zero projects as well as ensuring those activities are embedded in UK communities, thereby bringing added benefits to local economies and job opportunities. Export and import of energy products and government support for energy transition will also depend on the terms of the implementation of the EU-UK TCA in the energy sector and future export finance arrangements. Considering the broad alignment between the Energy White Paper and the European Green Deal, there is an opportunity for the UK to take a leadership position with its European partners on Energy Transition and for the UK supply chain to build competitive advantage by maintaining connectivity with the rest of Europe.

March 2021

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