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Written question asked by Euan Stainbank (Labour) on Wednesday, 15 April 2026, in the House of Commons. It was due for an answer on Monday, 20 April 2026. It was answered by Dan Tomlinson (Labour) on Thursday, 23 April 2026 on behalf of the Treasury.

Refineries: UK Carbon Border Adjustment Mechanism

Question

To ask the Chancellor of the Exchequer, what estimate she has made of the relative additional costs to domestic refineries of not including refined products in the Carbon Border Adjustment Mechanism from January 2028 for the 2028-29 financial year.

Answer

The government recognises the role that refineries play in energy security and the UK’s industrial base. The Government published a call for evidence (https://www.gov.uk/government/calls-for-evidence/future-of-the-uk-downstream-oil-sector/future-of-the-uk-downstream-oil-sector-call-for-evidence) on the future of the fuel sector on 23rd February 2026 in order to help understand the current state of the refining sector.

Following a strategic and technical assessment by HMG, it has been decided not to expand the Carbon Border Adjustment Mechanism (CBAM) to refined oil products in January 2028. We are continuing to work with the sector to assess the options and case for expanding CBAM to refined oil products at a later date.

We are unable to conclude that expanding the CBAM to refined oil products is technically feasible for January 2028, especially in an uncertain global environment where the potential adverse impacts of inclusion could not necessarily be managed effectively at such accelerated timelines.

Secondary information

Type
Written question
Reference
127571
Session
2024-26
Subjects
Refineries UK Carbon Border Adjustment Mechanism
Contains statistics
Yes
Link
View this Written question on www.parliament.uk