Climate Policy Engagement Analysis
Climate Lobbying Overview: Fuels Industry UK (formerly UKPIA) is strategically engaged negatively on climate policy, and has engaged on emissions trading, renewable energy, and land use policies throughout 2023. The company also appears to support a role for hydrogen in varying forms, and has consistently advocated for a technology neutral approach to transport decarbonization.
Top-line Messaging on Climate Policy: Fuels Industry UK appears to support policies to price carbon into the economy but also appears to advocate for market based mechanisms over government regulation. The organization supported carbon pricing and other policies to support it in a consultation response on Carbon Competitiveness in March 2023. The organization also expressed support for climate policies including a carbon price with a clear reference to the need for ambition on Twitter in August 2023. However, the company also appeared to advocate for market-based mechanisms over government regulation in a consultation response on the Low Carbon Fuels Strategy in April 2022.
Engagement with Climate-Related Regulations: Fuels Industry UK appears to have taken more negative positions on emissions trading, renewable energy and land use policies throughout 2023.
The group appeared to advocate for maintaining carbon leakage protection for exposed sectors in the carbon border adjustment mechanism (CBAM), in a consultation response on Addressing carbon leakage risk to support decarbonisation in June 2023, weakening the overall policy. Fuels Industry UK also appeared to advocate for indirect cost compensation for the refining sector in the UK Emissions Trading System in an October 2023 consultation response and did not appear to support the phase out of free allowances in the same June 2023 consultation response on Addressing carbon leakage risk to support decarbonisation, reducing the level of ambition of the policy.
On renewable energy policy, Fuels Industry UK appeared to advocate for a weakened sustainable aviation fuels (SAF) blending targets emphasizing cost, and also appeared to oppose an e-fuels sub-mandate in a June 2023 consultation response on developing the UK SAF Mandate In the same consultation the organization appeared to advocate for weaker policy measures to safeguard the impact of SAF production on carbon stocks, wherein it opposed a cap on Hydrotreated Esters and Fatty Acids (HEFA) fuels.
Positioning on Energy Transition: Fuels Industry UK appears to support a role for ‘low carbon’ fuels in the energy mix including hydrogen in varying forms but also appears to advocate for a technology neutral approach to fuel switching while also advocating for an extended role for ICE vehicles.
In an October 2023 consultation response, Fuels Industry UK supported the use of hydrogen in hard-to-abate sectors but also appeared to advocate for a technology neutral approach to fuel switching policies for fuel intensive industries. The organization also appeared to advocate for hydrogen blending with fossil gas without placing any clear timelines in a consultation response in October 2023.
Fuels Industry UK also appeared to advocate for a technology neutral approach to the decarbonization of transport that would continue the use of ICE vehicles powered by low carbon fuels in a May 2023 consultation response on the UK zero emission vehicle (ZEV) mandate. Additionally, in a May 2023 op-ed, the CEO of Fuels Industry UK, Elizabeth de Jong, appeared to unsupportive of the phase out of ICE vehicles by 2035 and advocated for a technology neutral approach to the transition so low carbon fuels can be utilized in ICE vehicles alongside EVs. The organization appears to have consistently advocated for a technology neutral approach to the decarbonization of transport on its X (formerly Twitter) in 2023, including October 2023 and July 2023.