North Sea Transition Deal - CCUS

Last updated: 25 March 2022

The UK government had aligned on the North Sea Transition Deal, an agreement on how to support the oil and gas industry sectors in their energy transition. The agreement includes commitments to support workers, businesses and the supply chain through this transition by harnessing the industry's existing capabilities, infrastructure and private investment potential to exploit new and emerging technologies such as hydrogen production, Carbon Capture Usage and Storage, offshore wind and decommissioning.   
 Extracting oil and gas on the UK Continental Shelf is directly responsible for around 3.5% of the UK’s greenhouse gas emissions. Through the package of measures, the deal is expected to cut pollution by up to 60 million tonnes by 2030 including 15 million tonnes from oil and gas production on the UK Continental Shelf, while supporting up to 40,000 jobs across the supply chain.  


Key commitments in the North Sea Transition Deal include joint government and oil and gas sector investment of up to £16 billion by 2030 to reduce carbon emissions. This includes up to £3 billion on Carbon Capture Usage and Storage. All government spending committed in the agreement allocates funds from existing mechanisms deployed by the U.K. Government, including the Global Underwater Hub investment, the Net Zero Innovation Programme, and the Ten Point Plan.

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