CBAM Consultation on Sectoral Scope Expansion

The government has launched a consultation on expanding the sectoral scope of the UK Carbon Border Adjustment Mechanism (CBAM) to include refinery products.  As announced at Budget last year, the government is considering the feasibility and impacts of including refinery products in CBAM.

The consultation window is 12 weeks, closing on 20 January 2027. You can find the consultation linked here.

The intention is to include (a subset of) refinery products in CBAM, subject to this consultation on feasibility and impacts. In doing so, the government believes this would help strengthen protection against carbon leakage and support UK decarbonisation.

For further information, guidance and support with understanding CBAM and the implications for your business, please click here.