Key facts
- UK launches £2bn Energy Wealth Fund.
- Fund to invest in domestic renewable energy and low-carbon projects.
- Norway's fund, started in 1996, is worth $2.4 trillion.
- UK could have had a £1 trillion fund if historical revenues were invested.
- Jackdaw gas project approval could boost UK domestic gas production by 6%.
The United Kingdom has launched a £2 billion Energy Wealth Fund, aiming to invest North Sea oil and gas tax revenues into renewable energy and low-carbon infrastructure. This initiative comes decades after Norway established its highly successful sovereign wealth fund using similar revenues. Treasury modeling suggests the UK could have amassed a £1 trillion fund if historical revenues had been invested and achieved comparable returns to Norway's fund, which is now valued at approximately $2.4 trillion. The new British fund will be managed domestically, focusing on green projects. The announcement coincided with the approval of Shell's Jackdaw gas field, expected to increase domestic gas production by 6% at peak output and contribute an estimated £2.9 billion to the economy. However, the UK fund faces the challenge of a mature and declining North Sea basin, potentially limiting future revenue accumulation.