Licensed Oil and Gas Fields: Emissions

Baroness Hayman Excerpts

Tuesday 11th March 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, first, I join the noble Baroness in expressing my sympathy to all concerned in the tragic events that have taken place in the North Sea. I also agree with her that we should pay tribute to the emergency services—and, of course, we are very concerned about the environmental impact.

I ought to explain to the House that scope 1 emissions are direct company emissions that occur from sources owned or controlled by the company. Scope 2 are indirect emissions resulting from generation of purchased energy, typically electricity, or purchased heat. Scope 3 are all indirect emissions not included in scope 2 that occur in the value chain of the reporting company and include downstream and upstream emissions—if noble Lords wished to know what those scopes were.

The point here is that we would be double-counting the emissions—or that is the risk—if we went down the route that the noble Baroness suggests. We had this consultation in the light of the Finch judgment, because we needed to revise the environmental impact assessment to take account of scope 3 emissions. We are carefully considering the consultation at the moment, and it would be premature for me to say anything more at this stage.

[Baroness Hayman (CB)]

My Lords, I declare my interest as chair of Peers for the Planet. Did the consultation involve—I do not think that it did—the issue of ending venting and flaring, which is not essential, from oil and gas fields in the North Sea? We know how damaging that is, and the Minister will recollect that during debates on the Energy Bill noble Lords across the House took a view that it was a dangerous practice that needed ending. What are the Government doing about ending it?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I believe that the noble Baroness is right that venting and flaring are not covered in the EIA consultation, which is about scope 3, and I think they would come into scope 1. We are, of course, concerned about this and are considering the matter. My understanding is that the upstream oil and gas sector overall makes up to 3% of total net territorial greenhouse gas emissions. Of course, we are committed to meeting carbon budgets 4, 5 and 6, and we have just received advice from the Climate Change Committee in relation to carbon budget 7—all those things come into the mix as well—but I certainly take seriously the point that the noble Baroness raises.