A judge has ruled that development can continue on two North Sea oil and gas projects, but there can be no production until environmental consents are in place. 

Approval by the Conservative government for the proposed Rosebank and Jackdaw oil and gas fields in the North Sea was “unlawful”, said Lord Ericht at a hearing in the Court of Session in Edinburgh that marked a victory for climate activists.

The cases, brought by campaign groups Greenpeace and Uplift, received a boost in June when the Supreme Court ruled in a separate case that the burning of fossil fuels associated with the projects rather than simply the building of the infrastructure, should be taken into account when projects are approved.

The Court of Session has now ruled the decisions for Rosebank and Jackdaw should be subject to reapplications.

The UK government will need to address downstream emissions as part of the consenting process. The developers will then need to reapply for consent from the government and the North Sea Transition Authority.

In the meantime, Equinor and Ithica, the companies behind the Rosebank project, and Shell, which is funding Jackdaw, can continue with preparatory works.

Shell had warned that a 12-month suspension of the Jackdaw project could cost “at least £200 million” while the costs of a permanent halt could “exceed £350m”.

Equinor and Ithica claimed that a one-year delay of Rosebank could cost almost £400m, while a two-year hold-up could cost more than £800m. The companies argued that “several hundred workers could be exposed to the risk of redundancy”.

But in his judgement, Lord Ericht stated “the public interest in authorities acting lawfully and the private interest of members of the public in climate change outweigh the private interest of the developers”

He added: “the effect of the burning of fossil fuels on climate change and the lives of individual persons is now well recognised in law”.

Philip Evans, senior campaigner at Greenpeace UK, said: “This is a historic win – the age of governments approving new drilling sites by ignoring their climate impacts is over.”

David Whitehouse, chief executive of trade group Offshore Energies UK, said: “Today the court has confirmed that these projects can now move forward according to due process.  

“The revised environmental impact assessment process which manages these consents must be robust and must be delivered at pace.

“Our domestic oil and gas remains a strategic asset for the UK. Industry takes its environmental responsibilities and the goal of net zero seriously which is why we need a robust process which provides clarity to investors, enables timely and predictable decisions, and provides certainty.

“We still have significant oil and gas reserves in our offshore waters and we should use them responsibly alongside renewable energy. Unlocking an additional four billion barrels adds over £200 billion to our economy, supports our jobs, and supports our world class supply chain with lower emissions than imports.

“If we do not produce it here in the North Sea, we will simply import it – paying less tax to the Treasury and creating a higher carbon footprint.

“As a society we are in a critical period for shaping the future of the North Sea, the UK’s energy system, the future of those working in the sector, the communities that depend on those jobs, and the wider UK economy. We must get this right.”

The UK offshore oil and gas industry has already reduced production emissions by 28% since 2018 and is on track to deliver reductions of 50% by 2030.

Scottish Conservative shadow secretary for net zero and energy Douglas Lumsden said: “This decision is a hammer blow for the North Sea oil and gas industry, which is so crucial for our economy and energy security.

“The majority of Scots support continued oil and gas production in the North Sea because they recognise it supports jobs and that, without it, we’d be more reliant on importing fossil fuels from abroad with a far greater carbon footprint.

“The Scottish Conservatives are the only party at Holyrood standing up for North Sea oil and gas and the North East communities that rely upon it.”

OEUK today reinforced official data which showed the UK is expected to use 15 billion barrels of oil and gas between now and 2050 but is expected to produce less than 4 billion barrels.

It says that unlocking an additional 4 billion barrels, while still not meeting domestic demand, adds over £200 billion to the UK economy, supporting UK jobs, and supporting a UK world class supply chain.

With significant oil and gas reserves around in UK offshore waters, OEUK said these should be used responsibly alongside renewable energy. It said to avoid a reliance on imported oil and gas, investors must be confident in the processes required to bring projects forward.