The UK government will introduce an Energy Independence Bill that would permanently ban new exploration licences in the North Sea and implement other energy policies, it said in the King's Speech policy announcement on 13 May.
The bill will introduce "Transitional Energy Certificates, and show climate leadership by meeting the manifesto commitment not to issue new licences to explore new fields, including delivering the commitment to ban fracking", according to the King's Speech document released by the government.
The legislation could be introduced soon, as part of the current legislative period, as some bills announced in the King's Speech are already on Thursday's House of Commons agenda.
The UK government had already committed not to issue new oil and gas exploration licences in the North Sea, but it has recently come under increased pressure from energy industry groups, firms, political parties and some unions to revise this commitment.
Under the proposed system of Transitional Energy Certificates, the government aims to maximise output from existing offshore fields by allowing firms to produce gas from areas adjacent to licensed blocks.
The bill also includes plans to accelerate the deployment of clean energy and grid infrastructure, end new coal licences, create a Warm Homes Agency, implement new rules for landlords to invest in home upgrades and give UK energy regulator Ofgem more powers to protect consumers.
Labour leadership challenges could upend plans
A leadership challenge to replace prime minister Sir Keir Starmer could delay or weaken plans to ban new North Sea exploration licences.
Four ministers had stepped down in recent days at the time of writing, calling for Starmer to resign and for a leadership contest to take place. "It is now clear that you will not lead the Labour party into the next general election and that Labour MPs and Labour unions want the debate about what comes next to be a battle of ideas. It needs to be broad, and it needs the best possible field of candidates," health secretary Wes Streeting said to Starmer in his resignation letter posted on X on Thursday.
A leadership challenge could delay current bills being put forward, but it could also bring a leader more supportive of North Sea oil and gas production, whether to boost economic activity or protect jobs.
The Unite union — a traditional ally of the UK's left-leaning Labour government — called for the government to "stop blocking oil and gas production in the North Sea" and to immediately give the go-ahead for the Rosebank oil and gas field development in March, along with the Shell-operated Jackdaw gas condensate project. "The government's position on oil and gas is putting jobs and national security at risk," Unite general secretary Sharon Graham said.
The GMB union — another Labour ally — has also previously opposed the ban, and its Scottish branch said in April that a "rushed rundown of oil and gas production risks a jobs calamity and should be paused".
Current frontrunners for a possible Labour contest include right-leaning Streeting, who could favour a more pro-growth approach, and soft left former minister Angela Rayner and Manchester mayor Andy Burnham, who have both shown support for North Sea bans.
