A Scottish court has overturned Britain’s approvals for two major North Sea oil and gas projects, marking a significant victory for environmental campaigners and placing the final decision back in the government’s hands. The ruling, issued by the Court of Session in Edinburgh on Thursday, found that approvals for Shell’s Jackdaw gas field and Equinor’s Rosebank oil and gas field were unlawful due to the failure to consider downstream emissions—those produced when the extracted fuel is burned.

The legal challenge was brought by environmental groups Greenpeace and Uplift, who argued that Britain's approval process ignored the full climate impact of these projects. Judge Andrew Stewart stated in his ruling that the "public interest in authorities acting lawfully and the private interest of members of the public in climate change outweigh the private interest of the developers." The court's decision requires the government to reassess its approval process while allowing the companies to continue preliminary work—though extraction remains prohibited until fresh approvals are granted.

In response, the UK government announced it is consulting on new environmental guidance regarding emissions accounting and stated that Shell, Equinor, and their partner Ithaca Energy could reapply under updated rules. A Shell spokesperson urged swift government action to provide regulatory clarity, emphasizing the importance of these projects to UK energy security. Equinor also welcomed the ruling, noting it allows continued progress on the Rosebank project while awaiting new approvals.

The case follows a landmark UK Supreme Court decision requiring planning authorities to assess the full climate impact of fossil fuel projects, including emissions from their eventual use. This precedent led the UK government to refrain from defending its position against Greenpeace and Uplift, having similarly withdrawn opposition in other cases. Greenpeace described the ruling as a "historic win," with campaigner Philip Evans declaring: "The age of governments approving new drilling sites by ignoring their climate impacts is over."

Shell’s Jackdaw gas field was previously projected to provide enough energy to heat 1.4 million homes, while Equinor and Ithaca’s Rosebank field is among the largest undeveloped oil reserves in the UK. Industry leaders argue these projects are crucial for domestic energy security, job retention, and economic stability, warning that delays could result in substantial financial losses.

The ruling comes amid a broader shift in UK energy policy. The Labour Party has pledged to halt new North Sea oil and gas licenses as part of its strategy to transition away from fossil fuels. Meanwhile, Uplift’s executive director, Tessa Khan, urged the government to reject any efforts to push Rosebank forward, arguing that approval would contradict the UK’s clean energy ambitions.

This legal setback follows Finance Minister Rachel Reeves’ recent statement on economic growth, in which she proposed reducing regulatory and legal barriers to investment. Despite industry pushback, the court’s decision signals increasing scrutiny on fossil fuel projects and reinforces the growing legal obligation to fully account for their climate impact.