Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of extending the Carbon Border Adjustment Mechanism to refinery products on the cost of aviation fuel and passenger air fares.

At Budget, the Government announced its intention to expand the scope of Carbon Border Adjustment Mechanism (CBAM) to include refinery products, subject to consultation on feasibility and impacts of doing so. This consultation was launched at Budget.

The Government is seeking views from a range of stakeholders on the practical, technical and economic considerations of this potential expansion.

The policy is designed to back British industry, by giving businesses the confidence to invest in decarbonisation, and prevent emissions, jobs and investment from being exported overseas.