Refineries: UK Carbon Border Adjustment Mechanism
The question
To ask the Chancellor of the Exchequer, whether she plans to include refined products in the Carbon Border Adjustment Mechanism at a future date; and if she will take measures to support the fuels sector whilst it is excluded from a Carbon Border Adjustment 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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