A report by the House of Commons Scottish Affairs Committee says the UK government should not accelerate the decline of Scotland’s oil and gas industry. It notes the sector is at a critical juncture as the country moves away from fossil fuels towards renewable energy and that clean energy jobs have not yet offset losses in the North Sea. MPs said action should have been taken sooner to prepare for job losses at Grangemouth, Scotland’s last oil refinery, and that the resulting employment gap is avoidable and damaging to local communities.

The inquiry into GB Energy and the net zero transition warns that until clean energy jobs are created at scale, the government should avoid accelerating the decline of North Sea production. It argues there are strong reasons to ease the pace of decline to meet domestic energy demand and to keep skilled workers in Scotland rather than losing them to overseas markets. The committee also backs reform of the windfall tax on oil and gas firms and calls for a pragmatic approach to licensing and for clarity on whether new drilling can occur under existing exploration licences.

The report says the closure of Grangemouth should be used as a case study for how Scotland’s energy transition is managed and calls for an explanatory statement with every environmental impact assessment outlining how environmental concerns were weighed against energy security and economic considerations. Labour MP Patricia Ferguson, chair, warned that clean energy jobs are not growing fast enough to replace losses and urged the government to plug the employment gap and avoid measures that would speed up the sector’s decline. Deputy First Minister Kate Forbes said the Scottish government is pursuing a just transition and highlighted funding to support the North East’s move to net zero. A Department for Energy Security and Net Zero spokesperson cited the plan to create more than 40,000 Scottish jobs by 2030 and noted ongoing investments in offshore wind and carbon capture. The GMB union urged ministers to address energy jobs and called for faster progress on the just transition.