Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether Drax’s current Contract for Difference contains any binding obligations requiring the development and deployment of carbon capture and storage; and what assessment his Department has made of the continued burning of imported wood pellets for electricity generation under that contract.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The current Contract for Difference (CfD) and recently announced Low-Carbon Dispatchable CfD agreements will be in place until 2031 and do not include contractual requirements for the development of carbon capture and storage (CCS) at the site. The focus of the new CfD is ensuring security of supply for the contract duration, and the development of CCS in the future remains under consideration.
The Government published an impact assessment in early 2024 as part of its consultation on support options for large-scale biomass generators. This assessment was consistent with the views of the Intergovernmental Panel on Climate Change (IPCC) which recognise that bioenergy can play a significant role in decarbonising economies, provided policies are in place to mitigate the use of unsustainable biomass.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to the press release entitled Fuel margins remain “persistently high” and this is not explained by operating costs, CMA finds, published on 22 December 2025, what steps he is taking to help reduce average fuel margins for non-supermarket fuel retailers.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government notes the Competition and Markets Authority’s (CMA) annual road fuel monitoring report.
Addressing the CMA’s findings, the Government is implementing Fuel Finder, a statutory open data scheme for road fuel prices to improve price transparency and incentivise competition in the market from both supermarket and non-supermarket retailers. The CMA also has statutory powers under the Digital Markets, Competition and Consumers Act 2024 to monitor the market and advise on any further action.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department has made an estimate of the compliance cost to the maritime sector of expanding the UK Emissions Trading Scheme to international maritime voyages in each of the subsequent ten years from 2028.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We published a consultation in late November seeking views on a number of proposals to expand the UK ETS to the international maritime voyages.
When we responded to the consultation on expansion to domestic maritime emissions, we also published a full impact assessment. This includes detail on the compliance costs for the expansion to domestic voyages.
We will publish a full impact assessment on the expansion to international voyages alongside the Authority Response to the consultation.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what the net zero targets for the Department and its arm’s-length bodies are; and what guidance has been issued on adopting net zero targets earlier than 2050.
Answered by Katie White - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Net Zero target in the Climate Change Act 2008, is a target for the whole of the UK, not individual departments or arms-length bodies.
Greening Government Commitments are the central framework setting out the actions UK government departments and their agencies will take to reduce their impacts on the environment, including setting targets to reduce emissions, during the framework period.
Defra are reviewing the Greening Government Commitments to ensure that they remain aligned with government priorities.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to expand the UK Emissions Trading Scheme to cover international shipping.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK ETS Authority has published a consultation on expanding the UK ETS to international maritime voyages from 2028. We propose that 50% of emissions from international maritime voyages are covered by the scheme. The consultation runs until 20th January 2026.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has considered providing temporary relief from CO₂ compliance costs for UK refineries, in the context of two of the six UK refineries closing.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government recognises the vital role UK refineries play in energy security and continues to work closely with the industry. The UK Emissions Trading Scheme (ETS), incentivises cost-effective decarbonisation, and the ETS Authority decides any changes to it. The Free Allocation Review Response published in November confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028, allowing time to develop supportive policy. The Government is committed to mitigating carbon leakage risk and, as announced at Budget is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the adequacy of the UK’s current regulatory framework for supporting cleaner hydrogen production for industrial sites.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Low carbon hydrogen will play a vital role in decarbonising industry, enabling the transition to a low carbon economy while protecting jobs and driving growth across the UK’s industrial heartlands.
The current regulatory framework provides a strong foundation, including the framework to award Hydrogen Production Business Model support to producers to enable deployment.
The Government will continue to ensure suitable regulatory frameworks for hydrogen as the industry develops, working with Devolved Governments and regulators. For instance, the Government published a response to consultation on an economic regulatory framework for hydrogen pipelines on 3 December.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department has had discussions with Exxon Mobil Corp on the potential impact of rising carbon costs on the viability of UK refineries since its evidence to Parliament in October 2025.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Details of Ministers' and Permanent Secretaries' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what comparative estimate his Department has made of (a) electricity prices for energy-intensive industries in (i) the UK and (ii) France and Germany and (b) grid and network charges in the UK and those countries.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The requested comparative estimates can be found in the Quarterly Energy Prices statistical publication published on GOV.UK. The most recent comparisons with EU countries are found in the June 2025 edition.
Further comparative estimates including a discussion of the breakdown of network charging can be found in the consultation outcome relating to: The proposed uplift to the Network Charging Compensation Scheme for energy intensive industries published by the Department for Business and Trade in October of this year, and available here:
Estimates were also set out in the "international price gap" section of the consultation on the British Industrial Competitiveness Scheme, published on 24th November 2025. This consultation will be open for responses until 19th January 2026, and is available here:
British Industrial Competitiveness Scheme: consultation on scheme eligibility and approach - GOV.UK
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment he has made of the impact of rising carbon costs on the viability of UK oil refineries.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government recognises the competitiveness challenges facing the refining industry and is determined to support the industry to address them and ensure the long-term future of the refining sector in the UK. In the Autumn Budget, the Government announced it is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future. The Emissions Trading Scheme Authority also recently published its Free Allocation review response which confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028. UK Emissions Trading Scheme: free allocation review - GOV.UK.