The British Chambers of Commerce (BCC) is calling for an independent taskforce to urgently examine energy transition in the North Sea and safeguard tens of thousands of UK jobs.

It comes after a new BCC report published today, found a careful balancing act will be needed to reach net zero and protect the huge oil and gas sector workforce, alongside thousands more jobs linked to the industry across the UK.

The report recognises the UK must achieve its climate commitments; however, it says current fiscal plans for the oil and gas industry risk reducing investment and impacting current energy security.

The independent taskforce should bring together the experience and expertise of all the sectors impacted by North Sea operations, including the energy sector, economists, environmentalists and the unions. It would produce recommendations for the Government on the pathway to an accelerated North Sea transition while maintaining jobs, skills and employment. Crucially, it should also examine the fiscal regime for the industry for the long-term.

The report calls for a “national conversation” about the North Sea as a “critical asset”. It highlights recent estimates that 200,000 direct and indirect jobs across the UK are reliant on the oil and gas industry.

And it concludes that there needs to be “strong dialogue” and “collaboration” between all interested parties.

Shevaun Haviland, Director General of the British Chambers of Commerce, said: “The imperative for Net Zero is ratcheting up daily as fresh evidence of the damage caused by climate change emerges. But it’s equally important that we manage this process to avoid catastrophic harm to our economy and workforce.

“We need an effective energy transition which does not cut adrift the tens of thousands of highly skilled people across the UK who rely on the sector for their livelihoods.

“It must also balance the diversity of our power supplies, so that the UK’s energy security is not put at risk, and we do not become over-reliant on imported fuels.

“This means having a clear and integrated plan in place as soon as possible. Politicians cannot keep kicking the can down the road. It is in everyone’s interests to get round the table and find pragmatic solutions.

“There also need to be honest conversations about how this can be financed. Plans to reduce capital and investment allowances will undermine business confidence in the sector and jeopardise a successful transition.

“If private investment in the sector is put at risk, then the repurposing of infrastructure and the pathway forward are also put in doubt.

“We are therefore calling for the establishment of an independent taskforce to further our research and support the new Government. A partnership approach can create a future for the North Sea which preserves the investment and skills needed for the green economy and safeguards thousands of jobs.

“Last week’s announcement that Government will consult on new environmental guidance for the oil and gas sector, provides an opportunity for all parties to shape the fair and just future everyone wants to see. This report provides the framework for this to happen.

“Independent recommendations from a taskforce will help create a route towards the certainty and confidence that businesses, the workforce, unions and environmental groups can all believe in.”