Licensing plan for oil in king's speech
The Guardian|November 06, 2023
Rishi Sunak will announce legislation for a new annual system for awarding oil and gas licences as part of a highly political king's speech tomorrow that the Conservatives hope will open up clear dividing lines with Labour.
Pippa Crerar
Licensing plan for oil in king's speech

The government said the plans would protect thousands of jobs and bolster energy security, reducing the UK's reliance on imports from hostile foreign regimes such as Russia, even though the UK has committed to move away from fossil fuels.

The prime minister said the move would help Britain reach its climate commitment of net zero carbon emissions by 2050 in a "proportionate and realistic" way, with new licences contingent on specific tests he said would support the transition to net zero.

Sunak has already watered down the government's climate targets, pushing back the deadline for selling new petrol and diesel cars and the phasing out of gas boilers, prompting furious condemnation from the automobile and energy industries.

The proposed legislation could set a political trap for Labour, which has said it would block new domestic exploration licences if it won power, proposing instead to invest heavily in renewable sources such as wind and well as in nuclear power.

Ed Miliband, the shadow climate secretary, said the plan to mandate annual oil and gas licensing was unnecessary, suggesting the government was more focused on creating dividing lines over the green agenda before the next election.

"This proposed bill is a stunt which does nothing to lower bills or deliver energy security," Miliband said. "We already have regular North Sea oil and gas licensing in Britain, and it is precisely our dependence on fossil fuels that has led to the worst cost of living crisis in generations.

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