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The Green Party accused Labor of “climate vandalism” after the government approved the Jackdaw gas field.
Greens leader Zack Polanski said the decision was “a betrayal of all our futures” and that Labor had “abandoned all credibility in the fight against climate change”.
The energy secretary, Miatta Fahnbulleh, agreed on Wednesday that the North Sea Transition Authority (NSTA) will give consent to produce gas in the licensed field. The government said Jackdaw will start supplying gas to British homes and businesses from the end of this month.
Polanski said: “This is climate vandalism. Today’s decision by Labor is a betrayal of all our futures, Labor has abandoned all credibility in the fight against climate change.
“The energy secretary has said herself that it won’t make a difference to energy bills; the health secretary has [Yvette Cooper] has admitted that the summer heatwave has added to the pressure on the NHS, and the industry’s own assessment is that it will only create 27 jobs.
“This is a victory for Shell over the people.”
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The government said the decision would increase domestic gas production by around 6% at its peak, supporting the UK’s gas supply over a lifetime of up to 11 years. It said the project would boost energy security, protect hundreds of jobs and add an estimated £2.9 billion to the UK economy.
The developer estimates that the Jackdaw will create 27 new direct jobs and protect 273 existing jobs.
Fahnbulleh said that the decision “is compatible with our legally binding climate commitments, and we remain resolute in accepting new licenses for oil and gas and achieving net zero by 2050”.
She said it would “support the country’s energy security with home-grown gas this winter and help the UK minimize its use of imported higher emission fuels as we continue our transition to renewables and nuclear”.
Prime Minister Andy Burnham said the government was “committed to moving to renewable energy and achieving net zero by 2050,” but that “even on our ambitious climate path, we will still require oil and gas as part of our energy needs for decades.”
He said: “That is why we have a pragmatic approach to the North Sea.”
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Burnham added: “Our approach will ensure we can boost our energy security, attract British workers, accelerate future North Sea revenues for the green transition, achieve our ambitious climate targets and – crucially – reduce bills.”
The chancellor, John Healey, also announced a new Energy Wealth Fund with an initial £2 billion, which will use tax revenue from North Sea oil and gas to invest in renewable and low carbon energy projects.
Healey said: “Since North Sea gas and oil were discovered decades ago, the advantage of our nation’s existing natural resources has not been converted into the long-term investment our country needs.
“Through our new Energy Wealth Fund, we will invest in the clean energy industry of the future, creating jobs, driving growth and strengthening the UK’s energy security.”
Secretary of State for Scotland Douglas Alexander said: “This will harness the home-grown skills and assets we have in Scotland and across the UK and provide a boost to the economy as we continue to invest in growing clean energy resources and work towards the transition.”
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