The UK government will not fight a legal challenge against the decision to grant consent to drill in untapped oil fields off Shetland and Aberdeen.

Greenpeace and Uplift jointly brought judicial reviews in an attempt to stop the development of the Rosebank and Jackdaw fields.

It comes after the Supreme Court ruled regulators should consider the environmental impact of new oil and gas projects.

This litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn.

Energy Minister Michael Shanks said: “We will consult at pace on new guidance that takes into account the Supreme Court’s ruling on Environmental Impact Assessments, to enable the industry to plan, secure jobs, and invest in our economy.”

The UK government is planning to consult later this year on its manifesto position not to issue new oil and gas licences to explore new fields.

Mel Evans, Greenpeace UK climate team leader, said: “These permits should never have been granted without being properly assessed for their impact on the climate, and following the Supreme Court ruling earlier this year, conceding these cases is the logical course of action.

“The two new fields combined would generate a vast amount of emissions while doing nothing to lower energy bills.

“The only real winners from giving them the greenlight would be multi-billion-pound oil giants.”