Carbon Emissions: Refineries
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of carbon price linkage within the EU on the oil refining sector in the UK.
Answered by Chris McDonald
The UK’s refining capacity is very important to our energy security and resilience, and is an industrial base which contributes to the continued growth of our regions. This government recognises the wider challenges facing the sector and know that tackling these with industry is vitally important.
Under the UK Emissions Trading Scheme, free allocations are provided to the refining sector to mitigate the risk of carbon leakage and reduce exposure to the carbon price.
Linking the UK ETS and EU ETS is expected to bring significant economic benefits to the UK, including a cheaper path towards decarbonisation by providing businesses with access to a larger, more stable carbon market and creating the conditions for mutual CBAM exemptions, removing a major barrier to trade and lowering costs for UK firms.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →