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Refineries: Carbon Emissions

Asked by Mr Richard HoldenConservativeDepartment for Energy Security and Net ZeroTabled Answered 9 December 2025UIN 97175

The question

To ask the Secretary of State for Energy Security and Net Zero, what recent assessment he has made of the impact of rising carbon costs on the viability of UK oil refineries.

Answered by Michael Shanks

The Government recognises the competitiveness challenges facing the refining industry and is determined to support the industry to address them and ensure the long-term future of the refining sector in the UK. In the Autumn Budget, the Government announced it is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future. The Emissions Trading Scheme Authority also recently published its Free Allocation review response which confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028. UK Emissions Trading Scheme: free allocation review - GOV.UK.

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