Oil Refining Sector

Caroline Nokes Excerpts

Wednesday 14th January 2026 Commons Chamber

[Brian Leishman (Alloa and Grangemouth) (Lab)]

I thank the hon. Member for securing this debate and for his Westminster Hall debate. We sit on opposite sides of the Chamber, but I thoroughly respect how much he has stood up for his constituents and the wider oil refining industry in the United Kingdom, and I thank him for that.

I will speak about Grangemouth and specifically the jobs that have been lost there—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Gentleman will not speak about Grangemouth. The debate is about the Lindsey oil refinery, and interventions must be brief.

[Brian Leishman]

Thank you, Madam Deputy Speaker. I was under the impression that the debate was on the wider UK refining sector. On that note, we talk about just transition—it is often mentioned in this Chamber—but job losses and no future jobs are the definition of a very unjust transition.

--- Later in debate ---

[Martin McCluskey]

I will write to my hon. Friend on that point about the carbon border adjustment mechanism and the ETS.

As was set out in the autumn Budget, we are reviewing critical policies to address the challenges that the sector faces. I will briefly go through the steps that we have already taken to help the downstream sector adapt and stay competitive. First, through the renewable transport fuel obligation and the new sustainable aviation fuel mandate, we are backing the production and use of cleaner fuels. The Humber refinery is already delivering sustainable aviation fuels at scale, and refineries at Fawley and Stanlow are benefiting from Government support through the advanced fuels fund to bring next-generation fuels to market. We are also working to de-risk investment in sustainable aviation fuel production through the revenue certainty mechanism.

Secondly, we are working closely with industry on major decarbonisation efforts, including carbon capture and hydrogen projects, within industrial clusters such as Viking and HyNet, which will be central to keeping UK manufacturing competitive as global markets tighten emissions standards. The UK ETS Authority’s decision to maintain current benchmarks for the 2027 scheme year provides the consistency and breathing room that energy-intensive industries need to plan investments and manage costs effectively.

In the autumn Budget, we committed to assessing the feasibility of including refined products in the carbon border adjustment mechanism. That is a key priority for industry, and it would help ensure that UK refineries were not undercut by imports produced to lower environmental standards. Collectively, these measures signal our determination to create the conditions for continued investment, innovation and long-term competitiveness as we transition to a low-carbon economy.

Looking ahead, the Government are deepening their engagement with the sector to ensure a smooth and secure transition in the coming years. It is important to note that Minister Shanks led the first ministerial—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The Minister will know that we do not refer to our colleagues by their names.