Fuels Industry UK says refineries need more certainty on CBAM and immediate measures to stabilise the sector

The Budget does not offer refineries the certainty they need of our inclusion in a carbon border adjustment mechanism that will level the playing field with our global competitors. While acknowledging that refineries play a role in energy security and the UK’s industrial base, we need greater urgency and tangible change given the industry remains under intense pressure.

British refiners will continue facing higher carbon costs than competitors abroad until its CBAM takes effect, and without urgent interim support the sector may not survive that long. Stabilising the sector is essential to safeguard our energy supply and stop the continued losses of jobs and capacity we have seen this year.

Government should move quickly to redirect the unused carbon allowances from recently closed sites to the refineries still operating. This is a simple, immediate measure that would ease cost pressures now - pressures UK refiners face far more acutely than competitors overseas.

Elizabeth de Jong, Fuels Industry UK Chief Executive Officer