Renewables jobs not making up for North Sea decline, MPs warn

"The committee also concluded that both the UK and Scottish governments should have been better prepared for the closure of the Grangemouth oil refinery, which shut earlier this year with the loss of more than 400 jobs. The UK government said it was committed to a "fair and orderly transition" to net zero. Deputy First Minister Kate Forbes said the Scottish government had provided 120m to support the transition to net zero in the north east."

"The Scottish government has a more ambitious target, set by former first minister Nicola Sturgeon, of reaching that goal by 2045. SNP ministers abandoned annual and interim targets last year after they repeatedly missed them. The Scottish Affairs Committee said fossil fuels would continue to form part of the UK's energy mix for decades. MPs reported that there were "compelling arguments" for a move away from oil and gas production to be slowed "to meet as much energy demand as possible from domestic sources"."

"The committee added: "Doing so will mean Scotland retains highly skilled supply chain workers, rather than being lost to overseas markets, which are vital for the growth of clean energy sectors." MPs warned that the current tax regime for the oil and gas sector, which sees profits taxed at a rate of 78%, would "accelerate the decline of the North Sea oil and gas industry and its supply chain". The report backed industry calls for the windfall tax to be reformed "as soon as possible"."

Scotland's energy sector faces a critical juncture as renewable energy job creation lags behind decline in North Sea oil and gas, threatening communities and supply chains. The closure of the Grangemouth oil refinery resulted in over 400 job losses and exposed inadequate preparation by both UK and Scottish governments. The UK targets net zero by 2050 while Scotland aims for 2045, though annual and interim targets were abandoned after repeated misses. MPs argued fossil fuels will remain part of the energy mix for decades and suggested slowing the move away from oil and gas to retain skilled workers. Concerns were raised that a 78% tax rate could accelerate industry decline and calls were made to reform the windfall tax.

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