Dale Vince, one of Britain’s most prominent green entrepreneurs, has called on the government to subsidise North Sea oil and gas producers to ensure what he described as a “just transition” to renewable energy.
Vince, the founder of Ecotricity and a Labour donor, said ministers should help protect the industry as the UK reduces its reliance on fossil fuels. His comments follow Labour’s election pledge to ban new North Sea oil and gas licences, a policy critics argue risks undermining jobs and energy security.
Calls to Scrap the Windfall Tax
Speaking to the Daily Telegraph, Vince urged the government to scrap the windfall tax on North Sea producers and instead guarantee minimum prices for oil and gas to stabilise the industry.
“Our North Sea is in decline, let’s protect it during the transition and optimise our use of the resources that are left,” he said. “We should scrap the windfall tax and protect the industry and its workers – we need to avoid the destruction of the industry or we will see a repeat of what happened to our coalminers.”
The windfall tax, introduced in 2022 after soaring energy profits, has been fiercely opposed by producers who argue it discourages investment.
Growing Support for Domestic Production
Vince’s intervention came just a week after fellow renewable energy entrepreneur Greg Jackson, founder of Octopus Energy, also backed continued drilling in the North Sea. Jackson argued that relying on British gas was less damaging to the climate than importing liquefied natural gas (LNG) from overseas.
“When we’re shipping LNG around the world, it is a lot dirtier than using locally produced gas,” he said. “It reduces the backlash against climate policy. I’ve got no problem with it.”
Political Pressure Mounts
The debate over North Sea energy comes at a time of growing political pressure. The sector employs about 130,000 people and generated £6bn in tax revenue for the government last year, following a record £9bn the year before.
Conservative leader Kemi Badenoch has pledged to maximise extraction from the basin if her party wins the next election. Reform UK has gone further, promising to reverse Labour’s ban on new exploration licences as a “day one” priority.
Although Labour’s manifesto promised no new drilling, industry insiders told The Guardian over the summer that government advisers had signalled some projects could still go ahead, provided they were tied into existing pipelines and avoided “greenfield” areas.
A Divisive Policy Within Labour
The row has also highlighted divisions within the government. Treasury officials are said to be open to exploring future projects, but the idea is expected to face resistance from Energy Secretary Ed Miliband, a long-time opponent of new fossil fuel licences.
Reports suggest Miliband pushed back against changes during Keir Starmer’s recent reshuffle, with ITV’s Robert Peston describing his refusal to move as “one part of the reshuffle that didn’t quite go Starmer’s way.”
Government Response
A government spokesperson dismissed Vince’s proposal, saying it was “not under consideration.”
“We are driving forward our mission to become a clean energy superpower, to cut bills for good,” the spokesperson added. “We are delivering a fair and orderly transition in the North Sea to drive growth and secure tens of thousands of skilled jobs, with the biggest ever investment in offshore wind and three first-of-a-kind carbon capture and storage clusters.”
