Freeing Britain from fossil fuels, rather than more drilling in the North Sea, is the best way to protect consumers from high energy prices, climate advisers say.
The UK government is already facing calls from some quarters to boost domestic oil and gas production, including from the North Sea, and even restart fracking to address soaring energy and fuel prices.
But its advisory Climate Change Committee (CCC) warns those “advocating for new oil and gas bonanzas in the UK” that high oil and gas prices are being driven by global markets and that the increase in UK fossil fuel extraction will hardly be billed make an impact.
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The CCC also said the granting of new exploration licences was unlikely to lead to production for decades, when Britain would need to slash oil and gas use to meet its climate targets.
The best way to reduce consumer influence on price volatility is to reduce the demand for fossil fuels through home insulation, heat pumps, electric vehicles and the development of more wind and solar energy, the advisory committee urges.
It noted that estimates show that people would be billed less than they would have if David Cameron’s pledge to “reduce green waste” had not reduced the rate of energy efficiency improvements since 2012 and had not halted a 2016 plan to make homes greener £40. in April.
If today’s government aims to have 40 GW of offshore wind by 2030, this will save a further £100 on the bill.
The committee also said the pledge not to build new oil and gas fields would boost Britain’s diplomatic efforts to drive stronger global climate action – and send a “strong message” to consumers and investors at home.
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But the committee did not recommend that the government halt oil and gas development in the North Sea, acknowledging uncertainty about the climate impact of such a move.
It also said other issues, such as energy security, were outside its remit and ministers had to balance those issues when making decisions.
In a letter to Commerce Secretary Quasi Kwarten, the committee said it supported the assumption of tighter production limits, tougher testing and a ban on exploration.
The committee has commented on the government’s consultation on potential “checkpoints” to assess whether new oil and gas licences are in line with the UK’s climate targets.
Emissions associated with the extraction of oil and gas in the UK are below the global average, which could mean domestic supplies will be cleaner than imports in meeting continued demand for fossil fuels, the CCC said.
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But more production here could support a larger global fossil fuel market, undermining global climate goals.
The committee also said North Sea oil and gas brought economic benefits, such as jobs, although those benefits were smaller than before, and the government could impose a windfall tax on energy companies if it chose to do so.
But the council’s chief executive, Chris Stark, said: “We want to bust the myth that the answer to the recent rise in gas costs and the increasingly high cost of oil is an immediate shift to more UK production.
“I’m afraid this is naive. The message to those advocating for a new oil and gas bonanza in the UK is that it will take a long time to increase and it will have little or no impact on the price consumers pay for oil and gas.
“The best way to avoid the kind of price volatility we’re seeing now is to go for net zero.
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“If we become more energy efficient, if we generate electricity through cheap renewables and a bit of nuclear, we transition to a more electrified economy with electric cars and heat pumps, which is a winning strategy for the climate and a very good one strategy for future energy security.”
If it could, he said, the UK should achieve “net zero” faster – its statutory target of reducing total greenhouse gas emissions to zero by 2050.
Lord Deben, chairman of the committee, said: “The fact that people’s gas bills and gas prices are affected by what we produce in this country is very, very small.
“The difference is if we move faster to cheaper forms of power generation, to offshore wind, onshore wind, photovoltaics,” he said, adding that energy efficiency is also very important.
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Emily Beament is the PA Environmental Correspondent.
