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Energy Transition

As the UK transitions to a low carbon economy, oil and gas will play a smaller role in meeting the demand for energy as we look to meet our 2050 zero emissions target.

On 27 June 2019, the UK became the first major economy in the world to pass laws to end its contribution to global warming by 2050. The target will require the UK to bring all greenhouse gas emissions to net zero by 2050. The UK’s 2050 net zero target was recommended by the Committee on Climate Change, the UK’s independent climate advisory body. Net zero means any emissions would be balanced by schemes to offset an equivalent amount of greenhouse gases from the atmosphere, such as planting trees or using technology like carbon capture and storage.

As we transition to a low carbon economy, oil and gas will play a smaller role in meeting the demand for energy over time. However, there will continue to be a need for fossil fuels, particularly gas, and all scenarios proposed by the Committee on Climate Change setting out how we could meet our 2050 net zero emissions target include some continued demand for oil and natural gas. An orderly transition, including UK oil and gas production, is crucial to maintaining security of supply and retention of vital skills and expertise.

The 2019 EITI Standard included new measures on environmental reporting for EITI implementing countries (requirement 6.4). Implementing countries are encouraged to disclose information on the management and monitoring of the environmental impact of the extractive industries. Data on the environmental taxes paid by the extractive industries can be found on our Sector Data page.

To find out more

If you would like to find out more about the UK extractive industries and energy transition, you may find the following links helpful:

Industry responses to the energy transition

  • The Oil & Gas Authority (OGA) has a Move to Net Zero area on its website.
  • OGUK has published roadmaps outlining the UK’s offshore oil and gas industry’s contribution to the UK and Scottish Government net-zero ambitions.
  • The Mineral Products Association (MPA) has pages on sustainability, carbon reduction and a map of natural parks based in former quarries and other former industrial locations returned to nature.
  • The Mineral Products Association have produced a new roadmap on how the UK concrete and cement industry can achieve net zero by 2050.

The UK and climate change

  • In 2016 the UK ratified the Paris Agreement, which provided a framework for governments as well as business and investors to keep global warming well below 2°C, pursuing efforts to limit the temperature increase to 1.5°C.
  • A report from the Intergovernmental Panel on Climate Change (IPCC), published in October 2018, set out the impacts of global warming of 1.5 °C above pre-industrial levels.
  • The Committee on Climate Change (CCC) provides independent advice to the UK government on building a low-carbon economy and preparing for climate change. The CCC published a report in May 2019 recommending that ‘the UK should set and vigorously pursue an ambitious target to reduce greenhouse gas emissions (GHGs) to 'net-zero' by 2050, ending the UK's contribution to global warming within 30 years.’
  • The UK responded to the CCC’s recommendations by passing laws 27th June 2019 to end its contribution to global warming by 2050.

EITI and climate change

  • A study by Professor Benjamin Sovacool from the University of Sussex found a correlation between EITI implementation and lower per capita carbon footprints. The study found that countries that are part of the EITI saw their carbon emissions reduce by 13% on average between 2000 and 2014. The world average carbon footprint per capita, on the other hand, grew by 23% over the same period.

    The study, entitled “Is sunshine the best disinfectant? Evaluating the global effectiveness of the Extractive Industries Transparency Initiative (EITI)”, was published in 2020 in the journal The Extractive Industries and Society. It explains that while the relationship between EITI membership and carbon reductions is not necessarily deterministic, the scheme allowed countries to use recovered funds no longer lost to corruption to invest in more sustainable forms of energy and other environmental practices.

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