A Scottish court overturned Britain's approvals for two large oil and gas fields in the North Sea on Thursday, marking a significant victory for environmental advocates and leaving the final decision regarding the projects in the hands of the government.
Shell and Equinor sought to maintain the approvals despite challenges from Greenpeace and Uplift, which contended that the approvals did not adequately consider the downstream emissions resulting from the use of the oil and gas.
The Court of Session in Edinburgh determined that Britain's approvals were unlawful, necessitating a reassessment of the decisions.
Judge Andrew Stewart stated in his written ruling, "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."
While the three companies can continue their preparatory work on the projects, extraction of oil or gas is prohibited until the government re-evaluates the approvals.
In light of the ruling, the government announced it is developing new environmental guidelines for accounting emissions and indicated that the companies may reapply for consent under these updated regulations.
A representative from Shell emphasized the necessity for prompt government action to enable Shell and other North Sea operators to make informed decisions regarding essential UK energy infrastructure.
Equinor expressed satisfaction with the decision, which permits the advancement of the Rosebank project while awaiting new approvals. Ithaca also expressed support for the ruling.
The judicial reviews initiated by Greenpeace and Uplift followed a significant ruling from the United Kingdom's Supreme Court, which mandated that planning authorities consider the consequences of burning fossil fuels, in addition to their extraction, when evaluating project proposals.
As a result, the UK government announced it would not support the cases brought by Greenpeace and Uplift, having also retracted its opposition in other similar instances.
Catherine Higham, Senior Policy Fellow at the Grantham Research Institute on Climate Change, noted that while proponents could still file a new application, the project's implications for the UK's energy transition would face increased public scrutiny.
Greenpeace celebrated the ruling as a "historic win," with senior campaigner Philip Evans stating, "The era of governments approving new drilling sites without regard for their climate impacts has come to an end."
Shell is advancing the development of the Jackdaw gas field, which it has indicated could supply sufficient energy to heat 1.4 million homes. Meanwhile, Equinor, in collaboration with its partner Ithaca Energy, is working on the Rosebank oil and gas field.
The three companies assert that these projects are crucial for the energy security of the United Kingdom, warning that any delays could result in significant financial repercussions and job losses.
