UK launches £2bn Energy Wealth Fund funded by North Sea tax revenue

The UK government has launched an Energy Wealth Fund with an initial £2 billion, funded by tax revenue on North Sea oil and gas. Future receipts from the same source will be added over time. ESG Today reported on the fund on 22 October; this publication covered the announcement a day earlier.

The fund sits within the National Wealth Fund and will invest in renewable and low carbon energy infrastructure across the UK. The government said the fund would help unlock growth and support projects driving the transition to a low-carbon economy.

It was announced alongside approval of gas production from the long-delayed Jackdaw field, which the government anticipates will increase UK domestic gas production by around 6% at its peak. The UK has committed not to issue new licences to explore new oil and gas fields. The government said the approval is consistent with that commitment, which allows existing fields to be managed over their lifespan. The government also said Jackdaw will not prevent the UK meeting its legally binding carbon limits or reaching net zero by 2050.

In its statement the government said heatwaves and extreme weather this year had highlighted the importance of tackling the climate crisis, and that "even on the path to net zero, the UK will still require oil and gas as part of our energy needs for decades to come." Chancellor of the Exchequer John Healey described the fund as a vehicle to "invest in the clean energy industries of the future," citing jobs, growth and energy security.