Responding to the announcement that all Government departments will cease oil and gas related funding and support to UK businesses, Stuart Broadley, CEO of the EIC states:
“This sudden announcement is surprising and whilst we 100% support the government’s move to net zero carbon and their energy transition ambitions in the build-up to COP26, we are concerned that this rapid removal of support to the UK oil and gas supply chain will harm immediate business prospects disproportionately. The EIC therefore commits to now work with government and industry as a matter of urgency to design a structured transition plan, to ensure British businesses are fully supported and are best able to continue to export successfully around the globe.”
“Given that there are already significant headwinds for energy exporters, including low oil price, the threat of a no-deal EU exit, and travel restrictions due to COVID, this decision will further impact more than 3,000 UK businesses who are active in the oil and gas supply chain, most of which are exporters.”
“Although we recognise there will be exceptions to this policy, and that a new North Sea Transition Deal is pending, the reality is that most oil and gas export opportunities today will not be exempt.”
“Energy transition is an exciting and important opportunity for businesses, but this new market is only in its infancy, and is 5 to 10 years away from being large enough to support the existing oil and gas supply chain. We therefore need to ensure our world-leading and highly competitive energy supply chain, respected around the world, stays rooted in the UK. Indeed, it is exactly these existing 3,000 suppliers who have the capability needed to ensure the UK can seamlessly transition from high carbon to low carbon technologies. We must not lose this unique capability.”
