Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the Carbon Border Adjustment Mechanism on the international competitiveness of the UK refining sector.

Carbon Border Adjustment Mechanism (CBAM) is an environmental measure, designed to mitigate the risk of carbon leakage and ensure that these carbon-intensive imports face a carbon cost that is comparable to that faced by equivalent goods produced in the UK.

The Government recognises the important role of the UK refining sector in supporting energy security and the UK’s industrial base. As confirmed at Budget 2025, the Government is considering the feasibility and impacts of including refined products within the scope of CBAM in the future.