The government’s much trailed plan to require annual oil and gas licensing rounds for the North Sea was included in the King’s Speech today.

The speech, the first by a king for more than 70 years, set out legislative plans until the next election, including a new Offshore Petroleum Licensing Bill.

The government said this would “strengthen the United Kingdom’s energy security and reduce reliance on volatile international energy markets and hostile regimes”.

Ministers have admitted that new licences would not bring down energy bills. But they insisted the plans would not breach UK legally-binding limits on carbon emissions.

They said two new tests would ensure licensing rounds would go ahead only if the UK was importing more oil and gas than it was exporting and domestic gas production was shown to have a lower carbon footprint than imported liquified natural gas.

The offshore industry welcomed the bill. But opponents said the tests would not guarantee that the UK complied with its emissions limits. It would exacerbate reliance on fossil fuels, resulting in higher emissions, they said. The tests should compare the North Sea’s carbon footprint with pipeline gas from Norway, rather than LNG, they said.

The legislation was also unnecessary, opponents argued, because the North Sea Transition Authority could issue oil and gas licences every year if it chose to.

“Obsession with oil and gas”

Tessa Khan, the executive director of campaign group, Uplift, said:

“This government’s obsession with oil and gas is making people in this country poorer and colder, all just to please a handful of multinational fossil fuel firms.

“Big oilfields like Rosebank, which will see most of its oil head abroad, won’t even bring in tax revenue, thanks to the vast subsidies this government is giving the industry to develop fields.”

“Least popular parts of Conservative energy policy”

Sam Hall, the director of the Conservative Environment Network, told the Guardian:

“Oil and gas is one of the least popular parts of the government’s energy policy. A major political focus on new exploration could undermine voters’ perception of the Conservatives’ commitment to climate action before the general election. It could also overshadow efforts to promote the party’s positive record on renewables, which is not widely known and significantly more popular.”

“Plans will exacerbate climate crisis and not lower bills”

Shruti Agarwal, senior adviser on climate change and sustainable economies at Save the Children, said:

“All too often the climate crisis impacts families on the lowest incomes both here in the UK and across the world the hardest. Yet the government’s decision to support more oil and gas expansion will only exacerbate this crisis and not lower bills.

“Today’s announcement shows that the government is failing to make the real long term decisions needed to protect children’s futures in the UK and around the world.

“Less than a month before world leaders gather at COP28 the UK’s rhetoric on climate leadership rings as hollow as its actions, failing to confront the crisis with the urgency it requires.”

“Retreat from net zero”

Ed Miliband, Labour’s energy security and net zero spokesperson said his party remained committed to halting the issue of new oil and gas licences:

“This proposed Bill does nothing to lower energy bills, does nothing to deliver energy security and is a sign of a government that is bankrupt of any ideas.

“We already have regular North Sea oil and gas licensing in Britain and it is precisely our dependence on fossil fuels that has led to the worst cost of living crisis in generations.

“All this embarrassing stunt tells you is that Rishi Sunak is continuing with his retreat from net zero. No wonder we see consternation from so many leading businesses, and even figures in his own party, who know he is undermining our energy security and damaging our economy.”

“Clickbait politics”

Jamie Peters, climate campaigner at Friends of the Earth, said:

“If there was a prize for political posturing, Rishi Sunak would win best in show. The King’s speech offered few surprises and very little of substance in yet another display of clickbait politics. His continued obsession with undermining green policies is out of step with voters of all stripes who want to protect the environment for future generations and left nothing to inspire hope among the millions of people facing another winter of sky-high energy bills.

“With the cost living crisis deepening and the climate and nature emergencies accelerating, Sunak could have used this moment to set out strong laws to boost the economy, cut harmful emissions and bring down our energy bills for good.

“Instead, the Prime Minister chose to side with the fossil fuel industry by offering more hand-outs – even if largely symbolic – at a time when so many people are struggling to make ends meet. The fact remains that more North Sea oil and gas will do nothing to reduce bills or improve energy security.

“Aside from this blatant injustice, recent polling tells us that delaying vital climate and environmental action remains deeply unpopular. The PM has preached pragmatism, but it’s his lack of long-term thinking and misjudgment of the public mood that could cost him dearly at next year’s election.”

“Oil sold to highest bidder”

Caroline Rance, Friends of the Earth Scotland’s climate and energy campaigner, said the bill was a “desperate attempt” to speed up oil and gas licensing and would increase climate breakdown. She said Conservatives were “acting in the service of fossil fuel giants”.

“It’s a fallacy that new oil and gas will do anything for UK energy security, as all the oil extracted will be sold to the highest bidder on the international market,” she said.

“Looking for new oil and gas is committing the world to more frequent and more intense storms and devastating floods like those people have suffered with storms Babet and Ciarán in recent weeks.

“Every new oil field granted takes us further from the fair and fast transition to renewable energy that is needed by workers and the communities most affected.”

“Make biggest and richest polluters pay for damage”

Jamie Livingstone, head of Oxfam Scotland, said the proposals demonstrated a “dangerous fixation” with fossil fuels which were inconsistent with climate science “and common sense”:

“Instead of obsessing over how to give greater confidence to those investing in the extraction of yet more oil and gas, we need to see our political leaders, both in Westminster and Holyrood, focus on how to quickly and fairly decarbonise our economy – funded by making the biggest and richest polluters pay for their damage while protecting the pockets of the poorest households.”

“Voters want ambitious action”

Ed Matthew, campaigns director of the climate change think tank, E3G, said:

“If every other country with fossil fuel reserves followed suit, it would emit more planet-heating emissions than have occurred since the Industrial Revolution, which would cause catastrophic, runaway climate change.

“Poll after poll has shown that the vast majority of voters, including Conservatives, want ambitious action to tackle climate change and build a cheaper and more secure energy system based on renewables.

“This legislation will do nothing to boost the government’s popularity but it will destroy the UK’s climate leadership credentials and undermine investment in the UK’s net zero transition.”

“New bills needed on energy, planning and pollution”

Ami McCarthy, Greenpeace UK’s political campaigner, said:

“Instead of furthering the government’s frenzy for new oil and gas and trashing nature through deregulation, he should use the King’s Speech to introduce new bills on energy, planning, pollution and the Global Ocean Treaty.”

“New licences won’t bring down bills”

Green Alliance challenged government claims that more frequent licensing rounds would increase tax revenues and help drive net zero investment. Its senior policy analyst, Heather Plumpton, said:

“The average UK energy bill is twice what it was two years ago and, as the Energy Security Secretary admits, these new oil and gas licences won’t do anything to bring that down.

“Instead, more North Sea drilling will only pump more money into fossil fuel companies, who aren’t investing in the transition to cleaner energy and aren’t going to be taxed to help fund it.

“To drive down bills and increase the UK’s energy security, we don’t need new legislation aimed at political point scoring, we need to fulfil existing plans to insulate homes and make the most of abundant and cheap renewable energy.”

“No impact on bills or energy security”

Roger Mortlock, chief executive at CPRE, said:

“In order to protect our countryside for future generations, we must move away from fossil fuels. Making it easier for future governments to extract oil and gas will have no material effect on bills or energy security.”

“New licences would manage production decline”

David Whitehouse, chief executive of the Offshore Energies UK, which represents the offshore oil and gas industry, said:

“The UK needs the churn of new licences to manage production decline in line with our maturing basin. A predictable licensing process with transparent checks will support the highly skilled people working in the sector, while ensuring the granting of new licences is compatible with energy security and net zero.”