North Sea Future Plan outlines framework for a fair and managed transition

The UK government has released the North Sea Future Plan on 26 November, setting out measures intended to support a stable and sustainable future for the region’s workforce, communities, and industries. The plan details actions to maintain existing oil and gas fields for the duration of their operational life and confirms that no new licences will be issued for exploration of new fields.

The government states that the North Sea will continue to contribute to Britain’s energy needs for decades, although oil and gas reserves have declined over the past 20 years. This reduction has contributed to the loss of more than 70,000 jobs over the last decade and prompted the need for long-term planning. The plan aims to address these challenges by creating a framework for clean energy growth, supporting the management of existing fields, and helping workers and communities adapt to changing industry needs.

Key components of the North Sea Future Plan

The plan fulfils the government’s commitment to manage existing oil and gas fields for their full lifespan and to halt new exploration licences. It reflects scientific assessments that new fossil fuel exploration is incompatible with limiting global temperature increases to 1.5C. As part of the strategy, the government will introduce Transitional Energy Certificates to allow limited production in or around existing fields when linked to established infrastructure and when necessary to support a managed transition. No exploration activity will be permitted for these developments.

Following consultation with workers and unions, the government will establish the North Sea Jobs Service. This national programme will offer personalised support for workers seeking roles in sectors included in the government’s industrial strategy, such as clean energy, defence and advanced manufacturing. The service will assist workers with identifying opportunities, accessing training and securing employment. It will operate alongside the expanded Energy Skills Passport and funding of up to £20 million from the UK and Scottish Governments for retraining initiatives in response to demand from the Aberdeen skills pilot.

Energy Secretary Ed Miliband said the plan is intended to support the North Sea’s workforce and communities, emphasising their contribution to energy supply over several decades. He noted that the plan incorporates the government’s commitments and aims to ensure that the region continues to serve as an energy hub throughout the twenty first century.

A new minister-led delivery board will also be created to bring together experts from industry and trade unions. This body will meet regularly to oversee progress, coordinate actions and support long-term planning for the transition.

Growing clean energy industries

The government describes the North Sea as a central asset in its aim to become a clean energy leader. Since July 2024, over £62 billion of private investment has been mobilised across Britain. This is accompanied by £63 billion in government funding for homegrown clean energy over the current Parliament, confirmed during the Spending Review earlier this year.

A new five-year plan will support supply chain companies by providing clarity on upcoming projects across the North Sea. The wider Industrial Strategy launched earlier in the year is expected to unlock further investment and support 1.1 million new jobs over the next decade, including in sectors where oil and gas workers already possess in-demand skills such as advanced manufacturing, defence and construction.

Managing existing oil and gas fields

The plan’s ban on new licences will end new offshore exploration and halt new onshore licences in England, aligning with commitments to end fracking. Transitional Energy Certificates will allow limited production in areas that form part of an existing field or are adjacent to licensed fields when connected via a tieback. These sites must remain economically viable and be managed throughout their entire lifespan. No exploration will be permitted at these locations.

The North Sea Transition Authority’s objectives and powers will be updated to align with the region’s evolving circumstances. The regulator will assess decisions based on three main objectives: maximising societal economic value, supporting net zero goals and considering long-term benefits for workers, communities and supply chains.

Supporting workers and communities

The North Sea Jobs Service will begin operating next year, offering end-to-end support for workers moving into sectors such as clean energy, defence and advanced manufacturing. It builds on an existing Ministry of Defence programme designed to help armed forces personnel into civilian employment.

Worker training will be supported through links with the Clean Energy Jobs Plan announced last month. This includes up to £20 million in funding from the UK and Scottish Governments and an expanded Energy Skills Passport, which will now include nuclear and networks in addition to offshore wind. A new Fair Work Charter will be introduced between offshore wind developers and trade unions to ensure that companies receiving public funding offer appropriate wages and workplace rights.

North Sea Transition Authority Chief Executive Stuart Payne said the plan provides direction for the energy sector and for the organisation itself. He said the Authority will continue working with government and industry to support the transition and deliver the next stage of development for the North Sea.

Additional context

The government reports that it is expanding clean energy industries and industrial supply chains. This includes £9.4 billion in backing for carbon capture, usage and storage projects during this Parliament, including funding for the Acorn and Viking projects in Scotland and the Humber. Earlier this year, the government, Great British Energy, industry and The Crown Estate committed £1 billion to offshore wind supply chains.

The National Wealth Fund has pledged at least £5.8 billion over this Parliament for investments in ports, hydrogen, carbon capture, gigafactories and green steel. More than £500 million in funding is being directed to hydrogen infrastructure, including support for the first regional hydrogen network set to begin operations in 2031. Over £2 billion was allocated last year to eleven hydrogen projects, with a furthe