Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of extending the Carbon Border Adjustment Mechanism to refinery products on annual revenue.

The Government intends to expand the scope of Carbon Border Adjustment Mechanism (CBAM) to include refinery products, subject to consultation on feasibility and impacts of doing so. This consultation was launched at Budget.

CBAM is an environmental measure designed to address the risk of carbon leakage, rather than to maximise revenue. As key elements of the policy design remain subject to consultation, it is not yet possible to provide a robust assessment of the potential Exchequer revenue impacts. The Government will consider the evidence received through the consultation in developing the final policy design.