Elizabeth de Jong, Chief Executive of Fuels Industry UK, said:
“Our refineries are the foundation of both the UK’s energy security and our wider economic success. We are therefore pleased that Government has today recognised this in their Budget, by announcing they will bring refined products into scope of the Carbon Adjustment Mechanism (CBAM), helping to level the playing field for UK refineries.
“Whilst today’s recognition from Government of the importance of the UK’s fuels industry to both our energy security and our economic success is welcomed, the lack of a firm target date to implement a CBAM for refined products will be a concern for the UK’s remaining refineries. Policy certainty is needed for future investment decisions.
“With carbon costs, which are not paid by importers, set to triple by 2030 and UK refineries already unable to compete on a level playing field with global competitors, the sector urgently needs the UK Government to set a firm timeline towards the introduction of a CBAM for the sector in 2029 which we believe is entirely feasible.
“We will now work closely with Government to ensure that a well-designed, effective CBAM - including the necessary export mechanism - is delivered as quickly as possible and we will be making that case in our response to the consultation opened today”.