Fuels Industry UK Statement on CBAM Roundtable
London 6 February
Fuels Industry UK and its members participated in a joint industry roundtable convened on Wednesday 4th February by the Department for Energy Security and Net Zero (DESNZ), with the Exchequer Secretary to the Treasury and the Minister of State at DESNZ.
The discussion focused on the future of the UK refining sector and delivery of the Government’s commitment, set out at the Autumn Budget, to consider the inclusion of refined petroleum products within the UK Carbon Border Adjustment Mechanism (CBAM).
Against the backdrop of the closure of one-third of the UK’s refineries in the past year, Fuels Industry UK and its members highlighted how the absence of a level playing field is undermining investment confidence and threatening high-skilled jobs. Without a CBAM, domestic refiners continue to be undercut by emissions-intensive imports from countries that do not face comparable carbon costs, with clear implications for the long-term viability of the UK’s manufacturers and UK energy security.
The roundtable also focused on the need for urgency in government decision-making.
Fuels Industry UK and its members stressed that it is vital that Treasury considerations are undertaken now, so that the CBAM for the sector can commence in January 2028 when the sector’s carbon costs are due to increase and there is a heightened risk of further capacity and job losses to those seen last year. The sector is seeking commitment to a timetable for the Treasury considerations, so that the legislation for its inclusion can be laid in the 2026 Finance Bill.
The roundtable represents a constructive step forward.
While there remains work to do, Fuels Industry UK is committed to supporting the Government’s assessment of the inclusion of refined petroleum products within the CBAM and remains focused on securing timely decisions to stabilise the sector and protect the strategically important UK refining capacity.