A broad majority in the Danish Parliament has reached a deal on the future of fossil extraction in the North Sea, leading to the cancellation of the ongoing 8th licensing round and all future rounds to extract oil and gas. The deal also establishes a final phase-out date of fossil extraction by 2050 and lays out plans for a just transition of impacted workers.
The agreement consists of the following points:
- A 2050 cutoff date for oil and gas extraction;
- A cancellation of the 8th licensing round and all future licensing rounds;
- A commitment to lead a global campaign on the role of fossil fuel producing countries;
- A just transition initiative in the affected region to ensure development and employment;
- Remaining rules nailed down to ensure stability, including access to two other licensing schemes with limited scope. However any such permits would still have to adhere to 2050 date;
- An analysis of the potential of electrification of current North Sea production;
- An initiative to explore the potential of carbon capture and storage, using old oil and gas wells.