UK High Court Upholds Legality of Oil and Gas Exploration Licences Amid Climate Concerns

A fresh legal bid to halt new oil and gas exploration in the North Sea has failed, as judges rule that the government acted lawfully while campaigners warn the decision risks weakening climate accountability.

Britain’s High Court has dismissed a legal challenge against the government’s decision to issue more than two dozen oil and gas exploration licences, a ruling that reinforces the current framework for approving early-stage fossil fuel projects despite mounting climate scrutiny.

The case was brought by marine conservation organisation Oceana UK, which argued that the licences issued in May 2024 did not adequately consider the impact on climate change or the risks to protected marine ecosystems.

Judges found that the government had acted within the law when it approved the exploration opportunities, concluding that early licensing does not automatically translate into future oil or gas production.

The ruling marks another chapter in a series of climate-related court battles in the UK, as environmental groups increasingly challenge fossil fuel decisions through the legal system with varying results.

Britain’s Department for Energy Security and Net Zero defended its position by stating that exploration licences merely allow preliminary assessments, with full environmental and climate evaluations required later if companies decide to progress toward extraction.

The government argued that it is impractical to assess total climate impacts at the exploration stage, because the eventual scale or viability of any potential production cannot be known before initial surveys are complete.

Oceana UK countered that the licensing stage is the most appropriate moment to consider wider environmental consequences, as it allows regulators to examine all proposed exploration zones together rather than assessing impacts piecemeal over time.

Campaigners said ignoring climate risks during early licensing could create a pathway for future fossil fuel extraction,
making it harder to meet the UK’s long-term climate commitments and undermining efforts to transition away from oil and gas.

Judge Tim Mould rejected the challenge but emphasised that environmental impacts must be evaluated thoroughly at each subsequent decision point, including any future moves toward development, drilling or commercial production.

Oceana UK said after the ruling that the government must remain transparent about the limits of exploration licences, stressing that the licences alone do not guarantee that companies will eventually receive approval to extract fossil fuels.

The organisation added that the judgment should not be interpreted as a green light for large-scale North Sea expansion, noting that several recent fossil fuel approvals have already faced legal setbacks following landmark court decisions.

The case gained attention after the UK Supreme Court ruled last year that planning authorities must consider emissions from the burning of fossil fuels, not just their extraction, setting a significant new standard for environmental review processes.

That ruling prompted the government to drop its defence in separate cases, including those concerning two major North Sea oil and gas developments that were later overturned by a Scottish court.

Oceana UK argued that the High Court should apply a similarly expansive interpretation of climate impacts, insisting that the full life-cycle emissions associated with new fossil fuel exploration must be taken into account from the beginning.

The licences at the centre of the challenge were part of the North Sea Transition Authority’s most recent licensing round,
which seeks to encourage investment in UK energy resources while balancing environmental protection obligations.

The government maintains that maintaining a stable domestic energy supply remains a strategic priority, but campaign groups say continued exploration risks prolonging dependence on fossil fuels at a time when renewable transitions should be accelerated.

The High Court decision leaves the future of new fossil fuel licensing rounds uncertain, as campaigners vow to continue using the courts to push for stronger climate accountability and more rigorous environmental oversight.

The ruling does, however, reaffirm the government’s authority to issue early exploration licences under current laws, while leaving open the possibility of stricter scrutiny at later stages of the approval process.

As the UK navigates the tension between energy security and climate responsibility, the judgment reinforces the importance of detailed environmental assessments moving forward while leaving broader policy questions unresolved.