To align North Sea oil and gas production with net-zero goals, new extraction licenses should require companies to permanently dispose of a prescribed fraction of the carbon dioxide generated by their products. This approach, facilitated by the existing Climate Compatibility Test, would ensure that new energy projects contribute to, rather than detract from, climate targets.

While projects like Jackdaw and Rosebank are approved, their legal status is challenged by the need to address global emission impacts. Companies argue their fuels will displace imports, but increased domestic production would still raise global emissions if less imported LNG is used. Requiring carbon capture and storage (CCS) could finance industrial CCS deployment, saving taxpayer money.

This policy would not affect consumer prices unless extended to imports. The profitability impact depends on the required capture percentage and timeline. A credible net-zero trajectory necessitates at least 10 percent capture and storage by the mid-2030s. The principle is clear: if fossil carbon is extracted, it must be returned to the earth. This policy, making producers responsible for carbon cleanup, could set a global precedent, ensuring jobs in CCS outlast fossil fuel reserves.