Climate Policy Engagement Analysis
Climate Lobbying Overview: Fuels Industry UK (FIUK), formerly UK Petroleum Industry Association, exhibits strategic engagement on science-aligned climate policy, undertaking both positive and negative positions on climate-related regulations. FIUK promotes the adoption of hydrogen in the UK energy mix in varying forms, and has consistently advocated for a technology-neutral approach to decarbonization of the transport sector.
Top-line Messaging on Climate Policy: Fuels Industry UK has limited top-line communications on climate policy in 2024 and 2025. The organization supported carbon pricing policies in a March 2023 consultation response on Carbon Competitiveness. However, it 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 holds both positive and negative positions on specific climate-related regulations. The association appeared unsupportive of emissions trading policies in 2024 and 2025. FIUK did not support updates to the UK Emissions Trading Scheme (ETS) in a March 2024 consultation response: it advocated against updating the benchmarks for emissions permits under the UK ETS that accounts for improvements in efficiency and did not support introducing conditionality on free allowances. The association also appeared unsupportive of extending the UK ETS beyond 2030 in an April 2025 consultation response.
FIUK held supportive positions on carbon border adjustment mechanism (CBAM) policies in the same period. In an October 2024 consultation response, the association supported extending the scope of the UK's CBAM to include refining, however it did not specify a position on removal of existing carbon leakage protection for exposed sectors.
Positioning on Energy Transition: Fuels Industry UK advocates for a role for ‘low carbon’ fuels in the energy mix, including hydrogen in varying forms. The association also appears to promote a technology-neutral approach to fuel switching, while also advocating for hydrogen blending. For instance, in a February 2025 consultation response, FIUK advocated for a technology-neutral approach to decarbonizing the transport sector, emphasizing the challenges associated with the electrification of light-duty vehicles. The association also appeared to advocate for the development of carbon capture and storage (CCS) in fossil fuel refining as a long-term solution to support production of low-carbon fuels in a November 2024 consultation response. However, it did not indicate the need to mitigate emissions from the final use of fossil fuels, nor did it support the need for widespread electrification to decarbonize transport in line with IPCC recommendations.
FIUK has also advocated for the use of hydrogen blending: in a September 2025 consultation response, the association supported the UK government’s proposal to blend hydrogen into the gas transmission network. However, it suggested that blending should be a long-term solution, claiming that that efforts to progress electrification of home heating and industry are overly ambitious.
This summary was last updated in Q3, 2025.