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Refineries: Carbon Emissions

Asked by Mr Richard HoldenConservativeDepartment for Energy Security and Net ZeroTabled Answered 12 December 2025UIN 97081

The question

To ask the Secretary of State for Energy Security and Net Zero, whether he has considered providing temporary relief from CO₂ compliance costs for UK refineries, in the context of two of the six UK refineries closing.

Answered by Michael Shanks

The Government recognises the vital role UK refineries play in energy security and continues to work closely with the industry. The UK Emissions Trading Scheme (ETS), incentivises cost-effective decarbonisation, and the ETS Authority decides any changes to it. The Free Allocation Review Response published in November confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028, allowing time to develop supportive policy. The Government is committed to mitigating carbon leakage risk and, as announced at Budget is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future.

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