The UK government has announced proposals to reform the tax system for the offshore oil and gas sector and phase out new drilling licenses as part of its commitment to transition the North Sea towards cleaner energy sources. The current 'windfall' tax on North Sea drillers, introduced in 2022, will be eliminated by 2030, and new tax plans closely linked to global energy prices will be introduced to provide stability for investors. This move aligns with the UK's goal of achieving net zero carbon emissions by 2050, positioning it as the first major G7 oil producer to take such a significant step. Despite concerns from trade unions about potential job losses and energy security, the government emphasizes the importance of the North Sea in the country's energy future, highlighting the roles of hydrogen, renewable energy, and carbon capture and storage technologies. While the oil industry cautiously welcomed the tax reform proposals, environmental groups like Greenpeace praised the government's commitment to ending reliance on North Sea oil and gas, citing it as a crucial step in combating climate change and creating future-proofed jobs in the renewable energy sector.