Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of not including refined products within the Carbon Border Adjustment Mechanism from January 2028.

The government recognises the role that refineries play in energy security and the UK’s industrial base. The Government published a call for evidence (https://www.gov.uk/government/calls-for-evidence/future-of-the-uk-downstream-oil-sector/future-of-the-uk-downstream-oil-sector-call-for-evidence) on the future of the fuel sector on 23^rd February 2026 in order to help understand the current state of the refining sector.

Following a strategic and technical assessment by HMG, it has been decided not to expand the Carbon Border Adjustment Mechanism (CBAM) to refined oil products in January 2028. We are continuing to work with the sector to assess the options and case for expanding CBAM to refined oil products at a later date.