On Friday, the UK government brought up the Energy Profits Levy by several percent. The levy was raised to 38%, up from 35% and focuses on North Sea oil and gas companies.

The levy has been extended to the end of March 2030. Along with increasing the Energy Profits Levy, the government has removed the investment allowance, which stood at 29%.

One of the key purposes of these moves is to help with the push toward a stable green energy transition.

The government is set to consult in the new year in relation to price shocks and how they can be dealt with when the levy discontinues in 2030.

The North Sea oil and gas sector has been on the decline for many years now with the government eyeing 100% clean and affordable electricity by 2030.

A green energy transition can result in significant job creation, lower prices and tackle climate change.

That said, it will still be important that the government takes steps to ensure those employed in oil and gas are not left behind, with new job prospects available where skills can transfer, to avoid a leap in regional or/and sectorial unemployment.