Industry News and Headlines

UK Plans to Cut Carbon Costs for Refineries After Closures

The UK government is preparing to incorporate oil refining into its Carbon Border Adjustment Mechanism (CBAM) to shield the remaining domestic refineries from escalating carbon costs. A call for evidence will feed into the Future of Fuels strategy, slated for release later this year, after the recent closures of the Grangemouth and Prax Lindsey plants. Energy Secretary Ed Miliband is working with the Treasury to fast‑track the inclusion, while industry players such as Exxon Mobil warn that unchecked carbon pricing could drive the sector out of the country. The move signals a policy shift from previous administrations that had accepted refinery decline.