Emissions intensity: do we need a CBAM for oil and gas imports?

Abstract

The UK has seen significant recent attention being paid to the issue of the ‘emissions intensity’ of oil and gas operations, with the oil and gas industry and the Government using this as a climate justification for domestic North Sea production over imported oil and gas. This commentary explores these arguments in the context of the Rosebank decision and examines why emission intensity matters for lawyers. One key reason identified involves trade: without a carbon border adjustment mechanism (tax) or equivalent on imports of oil and gas from countries with poor records on electrification, flaring and vented emissions, domestic oil and gas production faces unfair climate competition.