What is energy transition?

The Paris Agreement to combat the climate change emergency and create a sustainable low carbon future has changed the world and how we do business.

The concept of “energy transition” is now commonly understood in the energy industry’s terminology - and the impact it is having on the sector cannot be underestimated.

With the UK and Scottish governments' commitments to carbon neutrality by 2050 and 2045 respectively, reducing carbon contribution will require a commitment to transition in terms of both energy supply and usage.

The energy transition will have different implications for all businesses as we look to reduce our carbon footprint, diversify services, adopt new technologies and create new opportunities in a greener working world.

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What does energy transition mean for your business?

Regardless of which sector your organisation is in, the way in which you go about your business is likely to be impacted by the energy transition in the near future.

For example, Oil and Gas UK published its Energy Transition Outlook for 2021 at the beginning of December.

The report sets out a number of pathways for the oil and gas industry to contribute to the UK target.

The industry is leading the way by being one of the first sectors in the economy to have a blueprint to reduce its own emissions and support the development of technologies which assist in the de-carbonising of the UK’s economy.

One thing energy companies in the UK are good at is coming up with solutions for new challenges. That skill set and expertise developed over the past 40-plus years can be applied to the energy transition.

Carbon capture, usage and storage is a particular pathway which needs to be properly invested in to have any chance of achieving net-zero.

The oil and gas industry is uniquely placed to lead its development with existing supply chain expertise and infrastructure.

But it’s not just what the sector can currently do that’s important. Oil and gas companies, from operators right through the supply chain, are evolving and investing in their businesses to meet the requirements of a low-carbon future.

Whether it’s investing in alternative energy sources, such as offshore wind, or exploring technologies to reduce carbon footprint, steps are being taken to ensure the industry can have a sustainable future as part of meeting the UK’s energy needs through to 2050 and beyond.

How can our lawyers help you with energy transition?

Our lawyers are working with clients in all sectors to understand the impact of the energy transition and how to maximise the opportunities for your business.

We are here to help as new legislation and regulatory changes come into force.

If you want to know how to manage commercial and legal changes in this fast-moving landscape we’d love to have a chat.

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