Reacting to the announcement of a new clean energy deal with the EU, William Bain, Head of Trade Policy at the BCC, said:
“It is essential for the UK’s energy security and economic growth that we co-operate more closely with our European allies to realise the full potential of the North Sea.
“The commitments set out in the Hamburg Declaration will deliver on that, allowing our businesses to work on joint projects on renewables, interconnectors and other vital energy infrastructure.
“But we must not stop there. Action is also needed to ensure the competitiveness of oil and gas extraction and refining in the UK. This is a vital part of our energy mix in an uncertain world where we face multiple geopolitical and security threats.
“The UK government must ensure that its fiscal and policy decisions in the North Sea provide some much-needed certainty to businesses, workers, and communities across the country.
“Firms are clear that the current tax regime is not sustainable for another four years. If the Energy Profits Levy remains unchanged, it will negatively impact jobs and investment in the UK.
“The government must move to the recently announced Oil and Gas Price Mechanism as soon as possible, 2030 will be too late.
“The full commercial possibilities of offshore hydrogen exports from the UK, and carbon capture and storage also need to be explored. This is already a focus of energy security for many of our European partners.
“Businesses in the UK are desperate to see lower energy costs. The EU Reset offers an opportunity to bring the UK closer to a large and growing market for the surplus electricity it generates. This would secure increased investment, lower wholesale costs, and continuity of supply.
“The momentum from today’s Summit and Business Conference needs to be kept up. Economic growth, lower costs for businesses, and tens of thousands of jobs in the North Sea energy sectordepend upon it.”
More information on the clean energy security pact can be found here.