UK Launches £2 Billion Energy Wealth Fund, Decades After Norway

Britain announced a £2 billion Energy Wealth Fund on Wednesday, channeling North Sea oil and gas tax revenues into renewable energy and low-carbon infrastructure, the government said alongside approval of Shell's Jackdaw gas field. Treasury modeling reported by the BBC estimates the UK could have accumulated roughly £1 trillion had it invested its historical £200 billion in North Sea tax receipts at returns comparable to Norway's. Norway's Government Pension Fund Global, seeded in 1996, is now worth about $2.4 trillion. Unlike Norway's overseas-focused fund, Britain's vehicle sits within the National Wealth Fund and targets domestic projects. Chancellor John Healey said the initiative would help finance future industries. The government said Jackdaw could lift domestic gas output by about 6% at peak and contribute an estimated £2.9 billion to the economy. Offshore Energies UK welcomed the approval but urged further project sign-offs, citing over £50 billion in potential investment. Analysts note Britain's mature basin and plans to end new exploration licensing limit future revenues.