A new independent taskforce has been launched to map out an orderly transition for the North Sea that will safeguard tens of thousands of jobs and help secure its long-term future as a critical national asset.

 The North Sea Transition Taskforce will be led by Philip Rycroft, a former Permanent Secretary in the UK Government, who will pull together the expertise of supply chain businesses, unions, environmental groups, and energy policy experts to deliver the widest possible consensus on the right way forward.

The idea of the taskforce was put forward by Aberdeen & Grampian Chamber of Commerce last year following a major survey of industry alongside KPMG and ETZ Ltd. It will be launched alongside the latest edition of the survey at business breakfast in Aberdeen today.

Shevaun Haviland, Director General of the British Chambers of Commerce and the Executive Director of the new North Sea Transition Taskforce, said:

“Twelve months ago, the Energy Transition 38 survey called for an independent taskforce to help deliver an orderly transition for the North Sea industries away from oil and gas to the renewable industries of the future.

“I am pleased to announce that taskforce is now being set up and delighted that Philip Rycroft has agreed to lead this vital work.  His many years of experience at the highest levels of Government, both at Westminster and in Scotland, will be invaluable in gathering experience and insight from all those interested in seeing a just transition and to finding a broad consensus on the right way forward.

“The importance of the North Sea cannot be overstated; it is a national asset and this deserves a national conversation. The transition is vital for Net Zero, for the UK’s energy security and long-term growth, but it must also preserve the roles of hundreds of businesses and their tens of thousands of skilled workers.”

Mr Rycroft said key questions needed to be answered on a range of topics including licensing, decommissioning and investment as well as ensuring effective legislation and the right fiscal and regulatory framework to manage the transition.

He said:

“There is no doubt the North Sea will continue to have a vital role in the UK’s energy supply for many years. However, the approach to moving away from oil and gas to low carbon industries is a careful balancing act. Without a long-term plan, decision-making will continue to be piecemeal, making it harder to provide stability for all of those impacted.

“Alongside the dialogue between Government, business, NGOs and the public on current and emerging issues, our work will look to ensure a long-term strategic vision that will help to protect the highly skilled North Sea workforce and guide future operations.

“We need to involve the widest possible cross-section of interested parties in the decision-making process to ensure we reach a broad consensus on the right way forward and that no one is left behind.”

The taskforce will hold its first meetings before the end of the year and is due to publish its recommendations for the Scottish and UK Governments next Spring.

In a report published in September, the BCC warned failure to secure an orderly transition risked 200,000 jobs directly and indirectly reliant on North Sea industries, which risked a repeat of the devastating impact on communities last seen in the coalfield closure programme of the 1980s.

The latest findings of the Energy Transition Survey – now in its 40th edition – shows that confidence in the North Sea over the next one to five years is at an all-time low, far worse than at any point during the financial crisis, oil price crash or during the Covid-19 pandemic.

Professor Miranda Barker OBE DL, CEO of East Lancashire Chamber, commented:

“Achieving a just transition from oil and gas to renewable energy sources and expertise, is just as vital for the North Sea and its local economy, as it is for the developing world. It’s right and proper to see this addressed and support being put in place to drive this change.”

Paula Holland, Office Senior Partner for KPMG in Aberdeen, said:

“This latest report showcases the fine balancing act facing Aberdeen in its role as a major energy hub. While uncertainty has weighed heavy on those operating in the sector, with many fiscal and regulatory changes over the past few years, levels of optimism remain about the long-term future and its place at the centre of the UK transition.

“The recent confirmation of the location of GB Energy in Aberdeen, alongside the announcement of the North Sea Transition Taskforce, needs to be seen as a significant opportunity. It can only enhance the view that the region will continue to be the hub of the energy sector in the UK. However, the next few years are critical in turning local grit and long-term optimism into action.”

Maggie McGinlay, Chief Executive at ETZ Ltd, said:

“Our clear focus is on repositioning the North-east of Scotland as an internationally recognised energy cluster focussed on the delivery of net zero. In order to accelerate the commercialisation of offshore wind,  green hydrogen and carbon capture and storage, we must be able to draw upon the skills and expertise of our world class supply chain and that is why this newly established taskforce is a welcome development. Ensuring we protect our greatest asset until the vast renewables opportunity on our doorstep is available at scale is vital if we are to achieve a managed and just transition.”

Russell Borthwick, Chief Executive of the Aberdeen and Grampian Chamber of Commerce, which is hosting today’s Energy Transition event, said:

“There are great opportunities for Aberdeen to become a globally recognised renewable hub and ensure we protect our skilled workforce, maximise inward investment and decarbonise. But we need to act now or risk sleepwalking into repeating the mistakes of the 1980’s when the coalfield closures blighted whole communities for generations.”

The taskforce will review four main areas of work – assessing the scale of the problem, identifying which operations in the North Sea need to be managed, evaluating the impact of the transition on the workforce and exploring the governance arrangements being put in place to manage the transition.