The plan - which the prime minister said would allow the UK to transition to net zero in a 'proportionate' way - is expected to be unveiled in the King's Speech.
Rishi Sunak will introduce an annual system to award new oil and gas licences in a move that is likely to anger environmental campaigners. The government said it was bringing forward the plan so it can support the UK's transition to net zero in a 'pragmatic, proportionate and realistic way'. The legislation will be set out on Tuesday in the King's Speech, in which the government will outline its legislative plans for the year ahead.
It said each annual licensing round will only take place if key tests are met supporting the transition to net zero, including that the UK must be projected to import more oil and gas from other countries than it produces at home, and that the carbon emissions associated with the production of UK gas are lower than equivalent emissions from imported liquefied natural gas. The NSTA will only invite applications for the new licences if these two conditions are met, the government said.
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