Asked by: Henry Tufnell (Labour - Mid and South Pembrokeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Secretary of Stare for Energy Security and Net Zero, on the potential inclusion of refined petroleum products within the UK Carbon Border Adjustment Mechanism; and when the outcomes of those discussions will be made available.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As announced at Budget 2025 the government is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future. The government recognises that refineries play a role in energy security and the UK’s industrial base. Government Ministers are holding a roundtable with the refining sector on 4 February 2026 and will also publish a call for evidence on the fuel sector shortly.
Asked by: Henry Tufnell (Labour - Mid and South Pembrokeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to begin a formal assessment of the potential addition of refined petroleum products to the scope of the UK Carbon Border Adjustment Mechanism.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As announced at Budget 2025 the government is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future. The government recognises that refineries play a role in energy security and the UK’s industrial base. Government Ministers are holding a roundtable with the refining sector on 4 February 2026 and will also publish a call for evidence on the fuel sector shortly.
Asked by: Henry Tufnell (Labour - Mid and South Pembrokeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much her Department expects to raise from the introduction of a Carbon Border Adjustment Mechanism in (a) 2027, (b) 2028, (c) 2029 and (d) 2030.
Answered by James Murray - Chief Secretary to the Treasury
The government will introduce the UK Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027.
The UK CBAM will ensure highly traded, carbon intensive products from overseas face a comparable carbon price to those produced here, making sure that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.
The UK CBAM is designed to reduce the risk of carbon leakage. The aim of the UK CBAM is not to raise revenue. However, in the Office for Budget Responsibility’s most recent Economic and Fiscal Outlook, they forecast the UK CBAM to raise £43m in 2026-27, £184m in 2027-28, £221m in 2028-29, and £223m in 2029-30.