Rosebank oilfield would not breach UK emission targets, say government insiders

Emissions from exported oil would not count against carbon budget, insiders say – reasoning likely to draw dismay from climate campaigners

The giant Rosebank oilfield can be approved without breaching the UK’s emission targets, according to government insiders, in a boost to those in the cabinet who are pushing for it to be given the go-ahead.

The Guardian revealed last week that Miatta Fahnbulleh, the energy secretary, was leaning towards rejecting the project, but her position has put her at loggerheads with cabinet colleagues, including the chancellor, John Healey, who are lobbying for an approval.

Government insiders have told the Guardian the project can be approved on a strict reading of Britain’s climate obligations, in part because once the oil is exported, the emissions from burning it no longer count against domestic targets. “Miatta has more latitude than you might think,” said one.

A decision to approve the oilfield would be met with dismay from climate campaigners and some Labour backbenchers who view it as a harmful step away from prioritising net zero – and may see the shift of emissions from one country to another as a trivial distinction.

On Tuesday, Greenpeace and Friends of the Earth wrote to the prime minister urging him to consider the cumulative impacts of big decisions on North Sea drilling, Heathrow expansion and grants for heat pumps – rather than viewing each in isolation.

But sources say the Treasury has already accounted for billions of pounds’ worth of tax revenue from Rosebank and so would be faced with a shortfall should it be rejected.