Refineries: UK Carbon Border Adjustment Mechanism
The question
To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of the exclusion of refined products from the Carbon Border Adjustment Mechanism from January 2028; and what estimate she has made of the potential impact on the UK economy were refined products to be included in the mechanism.
Answered by Dan Tomlinson
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. Assessing the case for and feasibility of including refined oil products within the Carbon Border Adjustment Mechanism at a later date is a priority. We are continuing to work with the sector to assess the options.
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