Four in five cars should be electric and half of homes should have heat pumps within 15 years, say the government's independent climate advisers.
By law the UK must reach 'net zero' - no longer adding to the total amount of greenhouse gases in the atmosphere - by 2050.
However, the Climate Change Committee carbon budget published this morning reveals that Co2 emissions from UK fuel production have fallen by 60% since 1990, and that emissions will fall a further 40% between now and 2040, even with new North Sea fields.
The body's latest report outlines suggested steps the government can take to reach net zero by 2050 which, if the government accepts them, would then pass into law.
The new report also acknowledges that since 1990 there has been an 87% reduction in methane emissions, due in part to actions the oil and gas industry has taken.
In the report, the committee highlights the huge potential for carbon storage opportunities in the North Sea, as well as the Irish Sea.
It notes: "The UK has very large CO2 storage potential in saline aquifers (brine water-bearing formations) and depleted oil and gas reservoirs in the North Sea and Irish Sea.
"Detailed assessment by the British Geological Survey puts the total potential capacity at 78 GtCO2 (around a quarter of Europe’s total storage potential)."
It adds: "The UK’s access to promising CO2 storage sites off the coast of the UK in the Irish and North Seas, and its experience in offshore oil and gas production, make it well placed to establish CCS capabilities, which some estimates indicate could unlock up to £5billion worth of exports by 2050."
Reacting to the latest report, Michael Tholen, OEUK’s director of policy and sustainability, said: “This report recognises the major role of our sector in delivering net zero, with a special focus on carbon capture and hydrogen technology.
"The offshore energies industry is key to delivering a diverse energy mix, scaling up renewables and electrification at the same time as meeting the demand for oil and gas from UK homes and our industrial base.
“The CCC forecasts an 11% reduction in industrial emissions which is the largest target for any single sector and says carbon capture and hydrogen technologies will both play important roles for industries that require intense heat and cannot easily convert to electricity. It’s vital that we invest in these new technologies to futureproof British industry and jobs and communities.
“The UK’s homegrown oil and gas sector was one of the first to sign up to net zero, reducing emissions by 29% since 2018, and remains on track to meet its goals. By the time we reach our carbon reduction targets in 2050 we will still be getting 20% of our energy from oil and gas so it makes sense to produce as much of it as we can here in the UK rather than relying on more carbon intensive imports.”
The report notes concentrated oil and gas industry employment in Aberdeen (17%) and Aberdeenshire (4%), as well as supporting industries such as catering.
It states: "Some estimates indicate that around 14,000 people in the region will need to have moved to other roles or sectors between 2022 and 2030. There could be wider impacts on supply chains."
It also notes the impact of falling production on employment in the region, adding: "As of 2021, direct employment in oil and gas in Aberdeen has declined by nearly one-third since 2015. Household disposable income has fallen and poverty has increased."
But the CCC report states: "Many workers from these sectors have highly transferrable skills to new low-carbon markets such as offshore wind, hydrogen, and CCS. Low-carbon energy supply could create more job opportunities than the fossil fuel industry will lose in the next decade."