Designing a climate compatibility checkpoint for future ...

Designing a climate compatibility checkpoint for future oil and gas licensing in the UK Continental Shelf

Consultation Document

Closing date: 28 February 2022

December 2021

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Contents

General information _________________________________________________________ 4 Why we are consulting _____________________________________________________ 4 Consultation details _______________________________________________________ 4 How to respond __________________________________________________________ 5 Confidentiality and data protection ____________________________________________ 5 Quality assurance _________________________________________________________ 5

Background _______________________________________________________________ 7 Why are we designing a checkpoint? __________________________________________ 7 How does the licensing process work?_________________________________________ 7 Where in the process would the checkpoint fit in? ________________________________ 8 What kinds of project will be affected by this checkpoint? __________________________ 9

Proposals ________________________________________________________________ 10 Principles of the Checkpoint ________________________________________________ 10 Checkpoint Tests ________________________________________________________ 11 Potential Tests __________________________________________________________ 13 Potential test 1: Reductions in operational greenhouse gas emissions from the sector vs. commitments__________________________________________________________ 13 Potential test 2: Reductions in operational greenhouse gas emissions from the sector benchmarked internationally ______________________________________________ 16 Potential test 3: Status of the UK as a net importer or exporter of oil and gas ________ 18 Potential test 4: Sector progress in supporting Energy Transition technologies _______ 21 Potential test 5: Consideration of international Scope 3 emissions_________________ 23 Potential test 6: Consideration of the `global production gap' _____________________ 24 Implementation of the Checkpoint ___________________________________________ 25 `Out of Round' Licence Awards _____________________________________________ 26

Consultation questions ______________________________________________________ 27

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Designing a Climate Compatibility Checkpoint for Future Oil and Gas Licensing

General information

Why we are consulting

In March 2021, HMG announced the outcome of a review which looked at the compatibility of continued oil and gas licensing with the UK's climate objectives. The main outcome of the review was that continued licensing can in principle continue in alignment with UK climate objectives, but that a checkpoint should be introduced to ensure that licensing is only allowed to continue for as long as this remains the case. This consultation is to gather input on the design of that checkpoint.

Consultation details

Issued: 20 December 2021 Respond by: 28 February 2022 Enquiries to: Oil and Gas Exploration and Production Department for Business, Energy and Industrial Strategy 1 Victoria Street London SW1H 0ET Email: oilandgasconsultations@.uk Consultation reference: Designing a climate compatibility checkpoint for future oil and gas licensing in the UK Continental Shelf Audiences: We are seeking views from affected organisations and groups. These are predominantly:

? UK oil and gas industry and the investment community ? Non-Governmental Organisations

Territorial extent: Exploration and Production of Oil and Gas offshore is a reserved matter. Views are therefore sought from all countries within the UK.

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Designing a Climate Compatibility Checkpoint for Future Oil and Gas Licensing

How to respond

Respond online at: beisgovuk.energy-development/oil-gas-licensingcheckpoint

or

Email to: oilandgasconsultations@.uk

Write to:

Oil and Gas Exploration and Production Department for Business, Energy and Industrial Strategy 1 Victoria Street London SW1H 0ET

When responding, please state whether you are responding as an individual or representing the views of an organisation.

Your response will be most useful if it is framed in direct response to the questions posed, though further comments and evidence are also welcome.

Confidentiality and data protection

Information you provide in response to this consultation, including personal information, may be disclosed in accordance with UK legislation (the Freedom of Information Act 2000, the Data Protection Act 2018 and the Environmental Information Regulations 2004).

If you want the information that you provide to be treated as confidential, please tell us, but be aware that we cannot guarantee confidentiality in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not be regarded by us as a confidentiality request.

We will process your personal data in accordance with all applicable data protection laws. See our privacy policy.

We will summarise all responses and publish this summary on GOV.UK. The summary will include a list of names or organisations that responded, but not people's personal names, addresses or other contact details.

Quality assurance

This consultation has been carried out in accordance with the government's consultation principles.

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