Fresh government backing for new oil and gas licences in the North Sea could be confirmed by the Prime Minister today.

Rishi Sunak is expected in Aberdeenshire later today where he will reportedly announce millions of pounds in funding for the Acorn carbon capture project.

The project is a joint venture between Shell UK and other companies.

According to the Sunday Times, he will also confirm plans to issue new licences for oil and gas exploration in the North Sea.

Downing Street said that Mr Sunak would use the trip to describe Scotland as the ‘cornerstone’ of the Government’s energy security plans.

No 10 also signalled that the PM would be expected to highlight efforts to ‘boost the capability’ of the North Sea industry in the transition to net zero.

Energy Security Secretary Grant Shapps will also meet top figures from the oil and gas, renewable and nuclear industries over the course of the week amid a Government focus on the issue.

The emphasis on British energy projects comes after days of criticism of Mr Sunak amid concerns over a softening of the Government commitment to key net zero policies and environmental promises.

Some Tory MPs have used the party’s victory in the Uxbridge by-election, attributed to anger over London’s ultra-low emission zone (Ulez), to argue for a shift from the Government to create a new dividing line with Labour.

Sir Keir Starmer’s party would ban new North Sea oil and gas exploration, but the party leader has also said in the past that a Labour government would not interfere with existing licences.

Shadow climate secretary Ed Miliband said: ‘Every family and business is paying the price, in higher energy bills, of 13 years of failed Tory energy policy.

‘It is absurd that having left this country so exposed, the Conservative Party is asking the public to believe they can fix it.

‘And it’s telling that while Labour focuses on lower bills and good jobs, Rishi Sunak lurches desperately towards a culture war on climate to appease his split party, losing track of what he believes from day to day, depending on which faction he’s met with.

‘It’s no way to govern and it’s costing working people.’

But Mr Sunak and his ministers have stressed the need to use North Sea fossil fuel resources, especially since the Russian invasion of Ukraine.

Such moves have prompted alarm from climate campaigners, with the Government already facing opposition to any development of Rosebank, 80 miles north west of the Shetland Isles.

The Prime Minister faced questions about his green credentials over the weekend after he ordered a review of the rollout of low-traffic neighbourhoods, in an apparent bid to win motorist support for the Tories.

It comes as the Financial Times also revealed that the Government had moved to make changes to the UK’s post-Brexit carbon trading scheme, offering more allowances to industries and rendering it cheaper to pollute.

A Department for Energy Security and Net Zero spokesperson said: ‘We’ve taken significant steps to improve the ambition of the UK Emission Trading Scheme, and recently announced a reduction in the cap of 30% – to bring the scheme in line with our net zero goals.

‘We want to ensure a smooth transition to the net zero cap allowing the market and participants time to adapt, while ensuring the strength of overall ambition is not affected.’

Not all Conservative MPs want the Prime Minister to water down net zero commitments, after some backbenchers urged Mr Sunak to reconsider the deadline for the 2030 ban on new petrol and diesel car sales.

‘It is not Conservative to risk frying the planet. If you fry the planet you’ve got nothing to conserve,’ senior Tory MP Damian Green told BBC Radio 4’s Westminster Hour on Sunday.

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