The BCC’s Head of Trade Policy, William Bain, was in the historic trading city of Hamburg on Monday 26 January for the 3rd North Sea Summit.
He joined Energy Ministers from ten European countries, the EU Energy Commissioner, NATO representatives, and nearly 100 business leaders as a new chapter in the North Sea’s economic development began.
Together with Ben Martin, the BCC’s energy policy expert, he analyses how significant the summit was:
A common thread running through all the commitments agreed at the meeting was security, both in terms of energy and more widely from a geopolitical perspective. The delegates also recognisedthat resilience and competitiveness were key to their common energy future.
An impressive 100 GW of offshore wind energy investment and new hybrid interconnector infrastructure was set in train at the Summit with a long-term commitment to 300 GW by 2050, and 15 GW annually between 2031-2040. This involves two-sided contracts for difference (CfD) being introduced by Governments to allow secure financing, and a commitment to €9.5bn in new private investment, which is projected to catalyse up to €1trillion in additional funding in the next ten years.
A bold direction was also set in the development and trade of green hydrogen, which the UK stands ready to benefit from. The overarching strategy was to meet the economic, climate and geopolitical challenges of producing increasing levels of secure, clean energy to power the European economy in the decades ahead.
The key agreements from the Summit included:
- The Hamburg Declaration – pledging enhanced cooperation and secure energy and infrastructure – signed by heads of government, including Germany’s Chancellor, Friedrich Merz.
- A declaration by Energy Ministers on an action plan to facilitate long-term private-sector financing for energy infrastructure.
- A Joint Offshore Wind Investment Pact, signed by governments and many of the key business stakeholders, to drive future investment in the North Sea.
- A Joint Declaration of Intent on cooperation on projects for an interconnected offshore renewable energy grid between the UK, Germany, Denmark, Belgium and the Netherlands.
- A Joint Declaration of Intent between the UK and Germany on renewable energy infrastructure.
The Summit also heard directly from the ten Energy Ministers, EU Energy Commissioner, Dan Jorgensen, as well as energy policy stakeholders and businesses from the 10 countries involved.
Energy Secretary, Ed Miliband, also referred to the UK’s potential new relationship – being negotiated with the EU – in electricity market integration. This has the potential to scale investment, secure supplies, and lower costs for businesses and households alike.
The energy transition in the North Sea is vital for energy security, economic growth, renewable energy deployment, jobs, and defence. However, the UK faces several challenges in delivering this transition.
Our businesses continue to face some of the highest energy costs in the world, while the pace of renewable energy deployment is not yet fast enough to make up for the decline in domestic oil and gas production.
At a time of increased geopolitical uncertainty and with the urgent need to decarbonise our energy system, closer collaboration with our European allies is essential. Indeed, a German Federal Government document published at the Summit estimates the UK’s long-term potential capacity in Offshore Wind at 420GW. This is based on research, carried out in 2025, by the Fraunhofer Institute for Systems and Innovation Research.
The BCC welcomed the announcement of a new Clean Energy Security Pact that was made at the Summit. Under this agreement, the UK and other European countries will work together to deliver cross-border offshore wind projects, with wind farms connected to multiple countries through interconnectors.
Commitments to deepen cooperation on research and development into offshore hydrogen production, and to explore the potential deployment of offshore hydrogen systems, were also welcome. These will help to unlock the potential of hydrogen as part of the future UK and European energy mix and support the transition to a low carbon economy.
But while there was much to welcome from the summit, the UK Government must still ensure that its North Sea policy framework is able to deliver a successful and orderly energy transition. This includes putting in place a stable, proportionate, and long-term fiscal regime that provides certainty for industry, and avoids further losses of jobs and investment from the Energy Profits Levy.
The Government’s Oil and Gas Price Mechanism, announced in the Autumn Budget, last November, must be introduced as soon as possible, and well ahead of the currently planned date of April 2030.
In addition, the Government must take steps to support a resilient UK energy system by ensuring that the decline of oil and gas production does not outpace the build-up of renewable energy. Failing to manage this transition effectively will result in the loss of jobs, businesses and investment, particularly in regions heavily reliant on the North Sea energy sector.
Businesses are at the heart of the North Sea, spanning oil and gas, the renewables sector, and the supply chain. They are the critical link between today’s energy system and the low carbon technologies of the future. This includes the tens of thousands of skilled workers currently employed in oil and gas, who will be needed by the low carbon sector.
The future of many businesses, communities, and workers across the UK and Europe depend on getting this transition right. That’s why the BCC stands ready to work with the Government to deliver a successful, secure, and sustainable energy transition.
Hamburg has been at the heart of Northern Europe’s trade for centuries. This Summit gives the UK and its European allies the opportunity to be a world powerhouse for renewables and hydrogen, while recognising the key role still being played by oil and gas.
Secure and resilient energy supplies, and a globally competitive North Sea energy ecosystem are the huge prizes now in reach thanks to the strategic direction and investment plan set in Hamburg.