Association criticises Government over exclusion of refiners from Carbon Border Adjustment Mechanism

Fuels Industry UK is deeply disappointed by Government’s decision to not include the refining sector in the UK Carbon Border Adjustment Mechanism (CBAM) announced today.

A well-designed carbon levy in the form of a CBAM is needed to ensure importers face equivalent costs for carbon emissions as UK manufacturers, while enabling exports to compete in international markets.

Fuels Industry UK CEO Elizabeth de Jong said:

“It is vital that Government includes the UK refining sector in the CBAM so the nation can achieve its net zero ambitions and maintain the UK’s energy security.

“The UK’s six refineries have the size and scale needed to help decarbonise UK industry. They are crucial to producing the UK’s conventional fuels as well as the low carbon liquid fuels and hydrogen the country needs to achieve its climate ambitions.

“I am very concerned that without a CBAM, investment in refineries vital to achieve the UK’s net zero targets will go to countries with weaker climate regulations, leading to more imports of products with a higher carbon footprint and a reduction in UK manufacturing. UK refineries could close with thousands of jobs lost and an increase in overall emissions.

"Government must include the refining sector in its further consultation on the design of the CBAM in 2024.”

Notes to editors:

Read the Fuels Industry UK consultation response to the consultation on Carbon Leakage here.