Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
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 potential impact of carbon price linkage within the EU on the oil refining sector in the UK.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK’s refining capacity is very important to our energy security and resilience, and is an industrial base which contributes to the continued growth of our regions. This government recognises the wider challenges facing the sector and know that tackling these with industry is vitally important.
Under the UK Emissions Trading Scheme, free allocations are provided to the refining sector to mitigate the risk of carbon leakage and reduce exposure to the carbon price.
Linking the UK ETS and EU ETS is expected to bring significant economic benefits to the UK, including a cheaper path towards decarbonisation by providing businesses with access to a larger, more stable carbon market and creating the conditions for mutual CBAM exemptions, removing a major barrier to trade and lowering costs for UK firms.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of carbon pricing on the refinery sector.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK ETS Authority provides free allocations to sectors at risk of carbon leakage, such as the refining sector, to reduce exposure to the carbon price. The Authority recently concluded a review into free allocation policy which confirmed refining is at risk of carbon leakage and will continue to be eligible to receive support through free allocation, measured against an efficiency standard. The review also determined that the efficiency standard used to set free allocations would be maintained in 2027, providing operators in the sector with the necessary certainty to plan for the forthcoming allocation period. This will provide continuity and additional time for industrial sectors to plan for future benchmark updates, which are expected in 2028. Ahead of this, the UK ETS Authority will perform an assessment of impacts on businesses, including those in the Refining sector.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
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 contingency plans for alternate support measures to the Carbon Border Adjustment Mechanism for refineries.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government recognises that the sector is facing challenges and continues to engage with the fuel industry to explore what steps can be taken to support the sector. The Government continues to work at pace to consider the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism.
The Government is also supporting the refining sector transition to net zero by driving forward with a Sustainable Aviation Fuel Mandate and the Renewable Transport Fuel Obligation. In addition, the Government continues to provide financial support for decarbonisation projects, including for the deployment of CCUS and competition funding for hydrogen and low carbon fuels production.
On 23 February 2026, the Government launched a call for evidence that will shape the UK’s long-term strategy for the downstream oil sector. This will gather industry views on the opportunities and barriers to transition, issues and risks to energy security and what Government support may be needed to promote a managed transition.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what discussions he has had with Cabinet colleagues and the Northern Irish Government on using funds raised by the expansion of the UK Emissions Trading Scheme to maritime to support maritime decarbonisation projects in Northern Ireland.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Revenue raised through the UK Emissions Trading Scheme support the Government’s wider priorities, including spending that helps deliver decarbonisation.
The Government is providing funding to support the decarbonisation of the maritime sector, including in Northern Ireland.
For example, the first phase of funding for the UK Shipping Office for Reducing Emissions saw £19 million provided to businesses and projects based in Northern Ireland.
This includes a project to demonstrate a fully electric crew transfer vessel in Belfast Harbour and feasibility studies for a zero-emission shipping corridor between Northern Ireland and England, involving trials at Larne Harbour.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
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 potential impact of the European Commission’s proposals for the EU Carbon Border Adjustment Mechanism on the competitiveness and decarbonisation of the UK oil refining sector.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
At present, the EU Carbon Border Adjustment Mechanism does not include refined oil products .
In December 2025 the European Commission published further detail on their future plans for the CBAM, including the possibility of including refined products in scope at a future date. The UK Government committed in November 2025 to considering the feasibility and impacts of including refined products in the UK CBAM in future.
We continue to monitor the progress of the EU CBAM closely and encourage the EU to continue to engage with affected businesses to minimise the impact on trade, and to recognise and support industries working hard to decarbonise.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to support the provision of onshore power supply for ports across the UK, including in Northern Ireland, in relation to onshore power supply for ferries and cruise ships.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Responsibility for electricity policy is transferred to the Northern Ireland Assembly under the provisions of the Northern Ireland Act 1998. However, on 25 March, Government published the Maritime Decarbonisation Strategy and launched a call for evidence on Net Zero Ports, focusing on future energy demand and shore power. We are considering responses to the call for evidence.
In Great Britain, Government is working with Ofgem and the National Energy System Operator on reforms to accelerate grid connections, alongside using new powers in the Planning and Infrastructure Bill to accelerate strategic demand projects. These steps should support power deployment for ports.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to introduce monitoring and evaluation to determine the health and success of the UK hydrogen supply chain.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Developing domestic supply chains is a government priority, as demonstrated through our Industrial Strategy and comprehensive public financial institution offer which will provide direct support to UK hydrogen supply chains.
DESNZ collects supply chain data through the Hydrogen Allocation Rounds and welcomes the industry’s voluntary 50% local content ambition.
We are developing options to strengthen our approach to domestic supply chains in future allocation rounds and will be launching our HAR3 market engagement exercise setting out our proposals in due course.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to increase the levels of UK content used in hydrogen production projects as part of the upcoming Hydrogen Allocation Round 3.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
We welcome the industry-led voluntary ambition of 50% UK local content for hydrogen across the value chain from 2030. We will work with industry to introduce monitoring and evaluation to determine the health and success of the supply chain in relation to the existing industry voluntary content ambition, which could include exploring stronger incentives around reporting.
We plan to publish a market engagement exercise setting out our proposals for HAR3 in due course.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when he will publish the Hydrogen Allocation Round 3 market engagement exercise.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
We plan to publish our Market Engagement on the Third Hydrogen Allocation Round (HAR3), alongside the updated Hydrogen Strategy, in due course. This will seek feedback on the proposed design and delivery of HAR3 ahead of its intended launch in 2026, as set out in the Industrial Strategy.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what discussions she has had with Ofgem on the criteria for the third cap and floor window for electricity interconnectors.
Answered by Graham Stuart
Ofgem is responsible for administering the cap and floor windows for electricity interconnectors, including setting and applying the criteria for the process.
The Department meets regularly with Ofgem to discuss electricity interconnection.