Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has considered providing temporary relief from CO₂ compliance costs for UK refineries, in the context of two of the six UK refineries closing.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government recognises the vital role UK refineries play in energy security and continues to work closely with the industry. The UK Emissions Trading Scheme (ETS), incentivises cost-effective decarbonisation, and the ETS Authority decides any changes to it. The Free Allocation Review Response published in November confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028, allowing time to develop supportive policy. The Government is committed to mitigating carbon leakage risk and, as announced at Budget is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the adequacy of the UK’s current regulatory framework for supporting cleaner hydrogen production for industrial sites.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Low carbon hydrogen will play a vital role in decarbonising industry, enabling the transition to a low carbon economy while protecting jobs and driving growth across the UK’s industrial heartlands.
The current regulatory framework provides a strong foundation, including the framework to award Hydrogen Production Business Model support to producers to enable deployment.
The Government will continue to ensure suitable regulatory frameworks for hydrogen as the industry develops, working with Devolved Governments and regulators. For instance, the Government published a response to consultation on an economic regulatory framework for hydrogen pipelines on 3 December.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department has had discussions with Exxon Mobil Corp on the potential impact of rising carbon costs on the viability of UK refineries since its evidence to Parliament in October 2025.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Details of Ministers' and Permanent Secretaries' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to expand the UK Emissions Trading Scheme to cover international shipping.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK ETS Authority has published a consultation on expanding the UK ETS to international maritime voyages from 2028. We propose that 50% of emissions from international maritime voyages are covered by the scheme. The consultation runs until 20th January 2026.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what comparative estimate his Department has made of (a) electricity prices for energy-intensive industries in (i) the UK and (ii) France and Germany and (b) grid and network charges in the UK and those countries.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The requested comparative estimates can be found in the Quarterly Energy Prices statistical publication published on GOV.UK. The most recent comparisons with EU countries are found in the June 2025 edition.
Further comparative estimates including a discussion of the breakdown of network charging can be found in the consultation outcome relating to: The proposed uplift to the Network Charging Compensation Scheme for energy intensive industries published by the Department for Business and Trade in October of this year, and available here:
Estimates were also set out in the "international price gap" section of the consultation on the British Industrial Competitiveness Scheme, published on 24th November 2025. This consultation will be open for responses until 19th January 2026, and is available here:
British Industrial Competitiveness Scheme: consultation on scheme eligibility and approach - GOV.UK
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment he has made of the impact of rising carbon costs on the viability of UK oil refineries.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government recognises the competitiveness challenges facing the refining industry and is determined to support the industry to address them and ensure the long-term future of the refining sector in the UK. In the Autumn Budget, the Government announced it is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future. The Emissions Trading Scheme Authority also recently published its Free Allocation review response which confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028. UK Emissions Trading Scheme: free allocation review - GOV.UK.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, in the next two years, how many new oil and gas licences his Department will examine and what proportion he estimates will be approved; and what assessment he has made of the impact of licensing policy on the future viability of existing North Sea infrastructure.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government will legislate to meet its landmark manifesto commitment to end new licences to explore new oil and gas fields.
To support existing fields and infrastructure, the Government will introduce new Transitional Energy Certificates for a managed, prosperous and orderly transition.
The evidence suggests that even if new licenses were issued it would have only a marginal impact on overall production in the North Sea given it is a super mature basin which has been in decline for more than two decades.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will make a comparative assessment of the carbon intensity of (a) domestically produced oil and gas and (b) imported liquefied natural gas in the last 5 years.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The North Sea Transition Authority (NSTA) has published annual Emissions Monitoring Reports since 2021. These contain figures for carbon intensity or emissions intensity (relating to carbon dioxide and methane) of domestically produced oil and gas compared to fossil fuels from other sources, including imported Liquefied Natural Gas. The latest report and methodology can be accessed online:
Emissions Monitoring Report 2025
Emissions Monitoring Report 2025 methodology
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the impact of the North Sea oil and gas sector on employment and economic growth; and what steps he is taking to safeguard jobs in the offshore energy sector.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Our oil and gas sector significantly contributes towards our economy, and directly employs tens of thousands of highly skilled workers right across the UK.
However, the natural decline of oil and gas in the North Sea has seen more than 70,000 jobs lost in the last decade. On 26 November the Government published its North Sea Future Plan. This sets out how we will protect current jobs in oil and gas, while also securing the next generation of good jobs. This includes a new North Sea Jobs Service to provide end-to-end support for the current workforce to access new opportunities.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will take steps to prioritise domestic oil and gas production over imports.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Our priority is a fair, orderly transition to homegrown clean energy to ensure energy security and protect billpayers.
Further oil and gas exploration and production licences would not meaningfully increase UK production levels, nor would they change the UK’s status as a net importer of oil and gas. The UK benefits from a secure and diverse energy system, drawing on multiple sources to reduce reliance on any single supply.
Our ‘North Sea Future Plan’ sets out how we will implement our manifesto commitments in relation to domestic oil and gas production.