Michael Gove has recommended that the Scottish Government reprioritises future funding for the North Sea oil and gas industry into other areas of the economy.
The Cabinet Minister for Levelling Up was answering questions from MSPs at the Scottish Parliament’s Finance Committee.
He told MSPs that the UK and Scottish Government are likely to have a “divergence” over future energy policy.
Gove argued the UK wide strategy would “secure the future of the oil and gas” sector in the North Sea and the SNP government should prioritise funding marked for the North Sea into other areas as a result.
The UK Government set out its North Sea Transition Deal, which is aimed at preserving the jobs of oil workers as it shifts towards renewable energy sources.
Around £16bn has been pledged by 2030 for the move into new technologies, with the plan promising to cut production emissions in half.
The Scottish Government is expected to publish its updated energy strategy in the Spring, giving more detail on how the nation will reach the net zero by 2045 target.
The UK Government controls the majority of energy policy, but the Scottish Government has control of planning powers, letting the Scottish Ministers veto large energy projects that could see nuclear power developments halted in Scotland, for instance.
At the committee meeting, Gove said: “My own view is that there’s a reason why BEIS [Business, Energy and Industrial Strategy] exists as it does, as a UK-wide department.
“Energy security, for sombre reasons which we’re aware of, really matters, but there are legitimate divergent views about how to achieve that.”
He added: “I think that the emphasis on future investment in the oil and gas sector in the North Sea – there is a difference there and I know that in the future that the UK Government will want to continue significant investment in the oil and gas sector, continued investment in the North East, in Orkney and in Shetland – in order to secure the future of the oil and gas sector as part of a transition.
“I’m sure there will be ministers in the Scottish Government who would argue that some of that investment might be better prioritised elsewhere.
“That will be a fair disagreement on which we would conclude, but in almost every other area we could reach a constructive approach and agreement.”
A spokesman for the Scottish Government responded: "The North Sea has a critical role to play in our transition to a net zero economy and we are undertaking a programme of work on Scotland’s future energy requirements, ensuring an approach that supports and protects our energy security and our highly skilled workforce, through the Energy Transition Fund, the Green Jobs fund and Scotland’s £500m Just Transition Fund for the North East and Moray.
“Despite the £300bn that has flown to the Treasury from North Sea oil since the 1970s, the UK Government has so far ignored our repeated calls to match our North East Transition Fund.
“The UK Government’s decision not to give the Scottish cluster clear and definitive track-1 status is illogical,” the statement continued. “We stand ready with up to £80m of funding to support the Scottish cluster to develop carbon capture and storage in Scotland.
“We continue to call on the UK Government to work with us, and to provide the certainty and support required to accelerate the Scottish cluster project.”
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