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Sunday, Feb 02, 2025

Labour Faces Internal Division Over Rosebank Oilfield Decision

Labour Faces Internal Division Over Rosebank Oilfield Decision

Opposition to the Rosebank development grows within Labour as environmental concerns clash with economic priorities.
Senior figures within the Labour Party are warning of significant internal opposition if Prime Minister Keir Starmer approves the Rosebank oilfield project, Britain’s largest untapped oilfield, later this year.

The opposition is fueled by a growing rift within the party between environmental advocates and those prioritizing economic growth.

The project, led by the Norwegian energy company Equinor, has already faced setbacks, including a court ruling declaring the previous government's consent unlawful due to insufficient environmental assessment.

While the decision technically lies with the independent North Sea Transition Authority, the government’s increasing focus on economic growth may lead to Starmer’s involvement in granting final approval.

Many in Labour have voiced strong resistance, with several MPs warning they would oppose the decision if consent is given.

Key figures, including former Labour leader Ed Miliband, who leads the government’s climate agenda, are expected to take a firm stance against the development, citing its potential negative impact on carbon emissions.

The Rosebank field already holds a licence, allowing its development to continue pending further environmental consent.

Equinor has stated that the project is vital for the UK’s economic growth, projecting 4,000 jobs from its development.

The debate over Rosebank has intensified as Labour’s economic agenda, led by Chancellor Rachel Reeves, emphasizes growth through projects like a third Heathrow runway.

Environmental groups argue that the focus should be on the renewable energy sector, with concerns that the expansion of oil and gas would undermine the UK’s climate goals.

The final decision on Rosebank will depend on both the government’s consultation on emissions from oil and gas production and internal party dynamics, as some Labour members express frustration over the lack of a clear ideological direction from the leadership.
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