The North Sea Transition Taskforce has called on the UK Government to rapidly establish a long-term, integrated plan to deliver a just energy transition in the North Sea.

The Taskforce’s new report finds the “window of opportunity to secure the future of the North Sea is closing fast.”

But it said acting now could deliver economic growth, green jobs, energy security and climate leadership.

The Taskforce makes a series of recommendations, including the replacement of the current windfall tax with a more proportional system, the creation of a minister-led North Sea Transition Committee to coordinate action across Government, and the development of a long-term framework for large-scale investment in low carbon technology.

The Taskforce is an independent body, supported by the British Chambers of Commerce (BCC), which has brought together representatives from supply chain business, academia, environmental groups, and trade unions.

It also undertook a range of interviews with other interested parties, including industry bodies, NGOs, supply chain organisations, Government agencies, current operators and further trade unions.

Its report looks at managing the transition from a North Sea dominated by oil and gas production to one which successfully exploits its potential for commercially viable renewable energy.

“Done well, a successful, just transition will hasten the journey towards net zero,” said the BCC. “It will also guarantee energy security, underpin the UK Government’s industrial strategy and protect the workforce linked to the North Sea.

“Done badly, it risks a rapid erosion of its infrastructure, and damage to a world-leading supply chain and skilled workforce, to the detriment of economic activity in communities across the UK.

“Currently there is a real risk of a faster than expected decline in oil and gas production, while wind and other renewable projects will take longer to fully develop.

“If this gap is allowed to open, there will be no viable industry left to transition over, and the window of opportunity is closing fast.

“The report makes a number of recommendations; calling on the Government to replace the Energy Profits Levy with a more proportionate tax regime, introduce a multi-annual framework to support the growth of renewables, set out a clear regulatory regime for exploration, provide clarity on spatial planning, and assess the skills and workforce landscape needed for a just transition.

“It also calls for the creation of a government-led, cross-agency North Sea Transition Committee and expansion of the North Sea Transition Authority’s (NSTA) remit to coordinate the delivery of the plan.”

Philip Rycroft, Chair of the Taskforce, said: “The North Sea is a tremendous asset for the UK. A successfully managed transition as the oil and gas basin matures to a renewables future is in the UK’s national interest, vital for good quality jobs, revenues to the public purse, energy security and the achievement of net zero. Getting this right should be a top priority for both the UK and Scottish governments.

“The North Sea Taskforce has established beyond doubt that there are widespread concerns that a gap is opening up between the North Sea as it is now and as it might be. Government needs to act now to restore investor confidence in the future of the North Sea, treat this as a national mission and put in place a long-term and coherent plan for a just transition.”

Shevaun Haviland, Director General of the British Chambers of Commerce and Executive Director of the Taskforce, said: “The North Sea is a national asset which deserves national action. There is a delicate balancing act that must be carried out to secure its future.

“But with the right approach it is possible to deliver economic growth, green jobs, energy security and climate leadership. This is not an either-or answer, it is perfectly possible to do all these things.

“The financial landscape that underpins the North Sea’s future is critical; it must support investment rather than draining it dry. Getting the response right will add value to supply chains across the UK and generate the expertise needed for future projects around our coastline.

“The geopolitical world around us is changing at a frightening rate. If we manage the transition well, it will provide a plentiful and reliable source of renewable energy and give the UK much greater security and economic stability.

“The cost of getting this wrong is too great to ignore. The Scottish and UK Governments must join forces and work to protect this hugely valuable resource for future generations.”

Taskforce member Sally Uren, Forum for the Future’s Executive Director and Chief Acceleration Officer, said: “The UK’s energy transition stands at a crossroads and the debate over the North Sea’s future vividly reflects this. Too often, people assume a false binary: it’s green investment or economic prosperity. Instead, we need to recognise that done well, a just and carefully managed transition to renewables should guarantee UK energy security while also driving economic growth and green jobs.

“The report makes clear recommendations that would help realise this just transition. It’s about setting the North Sea up for tomorrow, while mitigating the very real risks we face today. These risks include an unmanaged decline in oil and gas production, the rapid erosion of a supply chain that could be adapted, and a slower-than-needed scaling of renewables.

“Among the report’s recommendations is a long-term, large-scale investment in low carbon technology, and ensuring that the continued (and planned) oil and gas extraction is in line with the UK’s net zero commitments. Only then can we secure a prosperous, fair and secure future for the North Sea; one that delivers for workers, businesses, communities and the planet.”

GMB Union National Secretary Andy Prendergast said: “This report sets out real-world proposals for the North Sea’s transition. It recognises the dangers for jobs and economic redistribution of an accelerated decline in UK oil and gas production and stresses the need to take greater domestic responsibility for meeting our climate obligations and strengthening energy security in an uncertain world. This is a credible intervention that government should embrace.”