ExxonMobil: Mossmorran

John Slinger Excerpts

Tuesday 18th November 2025 Commons Chamber

[Chris McDonald]

I know that the hon. Member takes a keen interest in the carbon prices for industry, and it is worth looking at the particular situation of this plant, as it exports all of its products to the EU. It receives a carbon allowance for its emissions that is slightly higher than 50%, and the reason why it does not receive a higher level of allowance is that it reflects the inefficiency of the plant. Fundamentally, the free allowances are set against a benchmark—a plant that receives 50% is one that is inefficient.

As I know the hon. Member will appreciate, given his business background, the intention behind that policy is to incentivise the owner of the plant to invest in order to reduce their carbon emissions, and then they would be able to sell the carbon credits on the open market and generate further profit for the plant. That has worked very effectively in the advanced manufacturing sector. For whatever reason, the owner of this plant chose not to invest, and it has suffered the carbon penalty as a result. The community of Fife has suffered as a result of its decision as well, and we are now in a position where a $1 billion investment cannot be sustained.

As I mentioned earlier, this company is exporting its products. It would be very difficult for it to find any way to exempt itself from carbon policies, because of course the EU has a carbon mechanism too, and that is the market into which it sells. Fundamentally, that carbon cost has to be paid, either here in the UK or to the EU. I am sure that as a good supporter of the UK and of Britain, as opposed to the EU, the hon. Member would prefer that His Majesty’s Treasury receive any taxation income, rather than sending that money to the EU.

[John Slinger (Rugby) (Lab)]

Could my hon. Friend set out what more the Government can do to engage with multinational investors and demonstrate that, from Rugby to Fife, the UK is an attractive environment for investment under this Labour Government?

[Chris McDonald]

As I set out in my statement, we have managed to attract £250 billion of investment. That investment is coming to the UK because we have policy certainty around industry through our industrial strategy, and it is delivering jobs across the whole of the country.