UK asks importers whether refinery products should join its carbon border tax

Fuel importers have a chance to shape the UK's carbon border tax before any change is made. The government is asking whether refinery products should be added to it. Replies are due by 20 January 2027.

The tax is the Carbon Border Adjustment Mechanism, or CBAM. It is a charge linked to the carbon emitted making certain imported goods. On 28 October 2026, HM Treasury and HMRC opened a consultation on extending it.

This is a proposal, not a new rule. The page says the consultation "seeks views on the feasibility and impacts of CBAM sectoral scope expansion to refinery products." In other words, would it work, and what would it do?

Some background. At Budget 2025, the government said it was considering adding refinery products to CBAM in future. This consultation is the next stage of that review.

Who can reply? The page invites importers and their agents, other businesses, tax advisers and trade bodies. Individuals and parties overseas can reply too. You can respond online or by email to the CBAM policy team.

What happens next? The consultation closes at 11:59pm on 20 January 2027. Nothing changes for refinery product imports today. The government has not said when, or whether, these products will be added.

What to check

• Do you import or trade refinery products into the UK?
• Have you read the 44-page consultation document?
• Will you send views before 20 January 2027?