MPs Press HREDD as Ministers Outline Refining Strategy

High-Level Summary

Two Westminster Hall debates examined ethical trade and the UK’s industrial energy security. Members discussed Fairtrade certification and widespread calls for mandatory human rights and environmental due diligence (HREDD) across supply chains. The Minister said the Government’s responsible business conduct review is considering HREDD and highlighted existing procurement and oversight tools. A separate debate assessed the outlook for UK oil refining after recent closures, with Members pressing for measures on energy security and competitiveness; the Minister set out steps on carbon‑pricing stability, potential carbon border measures, industry engagement and investment at Grangemouth. Both debates concluded with formal resolutions that the House had considered the topics.

Detailed Summary

Fairtrade certification in UK business and trade

Context and arguments: Martin Rhodes opened a Backbench Business debate on the role and impact of Fairtrade certification, highlighting public engagement and a petition delivered by the “Brew it Fair” campaign: “The petition calls on the Government to introduce a law on human rights and environmental due diligence” [ref: a205.1/5]. He and others argued that voluntary schemes alone are insufficient, noting that section 54 of the Modern Slavery Act 2015 “requires companies only to report on their operations, but not necessarily to take responsible actions” [ref: a206.1/4]. Members called for mandatory human rights and environmental due diligence to create a level playing field—Rupa Huq said, “Introducing mandatory human rights and environmental due diligence would level the playing field” [ref: a213.0/4]. Further ideas included integrating Fairtrade standards with the Groceries Code Adjudicator—“should we not also integrate international Fairtrade standards into the Groceries Code Adjudicator” [ref: a205.0/1]—and encouraging public procurement of Fairtrade goods, with one Member asking what is being done to “encourage public bodies to purchase Fairtrade goods?” [ref: a208.1/7]. Some contributors also cited business support for tighter rules and noted many firms already follow EU due‑diligence requirements [ref: a206.1/3].

Government response, outcome and next steps: The Minister endorsed the goal of “free and fair” trade and confirmed ongoing work: “we are engaged in a responsible business conduct review” and “Yes, we are looking at how those would work” in relation to mandatory human rights and environmental due diligence [ref: a219.3/20]. He pointed to procurement and enforcement tools—“the Procurement Act 2023… has a new central debarment list” [ref: a219.3/5]—and institutional support: “we have opened the Office for Responsible Business Conduct” [ref: a219.3/21]. The motion was agreed to: “Resolved, That this House has considered the role of Fairtrade certification in UK business and trade” [ref: a224.3/4].

Future of the oil refining sector

Context and arguments: Martin Vickers led a debate on the strategic importance and current pressures on UK refineries after recent closures, noting that “only four operational refineries remain in the UK” [ref: a225.2/5]. He argued that energy and carbon costs disadvantage domestic plants—UK refineries are “competing with one hand tied behind their back” [ref: a225.2/12]—and asked whether the Government would back a buyer to keep the Lindsey site whole: “do the Government support a deal that would retain the refinery complete?” [ref: a227.1/4]. He and others proposed policy options such as expanding the carbon border adjustment mechanism to refined products [ref: a227.1/2–a227.1/3]. The Scottish Affairs Committee’s findings on Grangemouth were cited: “both Governments should have acted sooner” to plan for closure impacts [ref: a228.2/3]. Evidence on emissions‑trading costs was also raised, including that “Fawley refinery this year will spend between £70 million and £80 million on CO2 costs alone” [ref: a244.0/8]. Contributions covered reforms to ETS/CBAM, support for sustainable aviation fuel policy and skills and infrastructure measures.

Government response, outcome and next steps: The Minister said the Government are “absolutely committed to securing the long-term viability of the UK’s refining sector” [ref: a247.0/4]. She confirmed pricing stability—“the UK ETS Authority confirmed that current benchmarks will stay in place for the 2027 scheme” [ref: a248.1/3]—and that the Government are “assessing the feasibility of including refined products in the carbon border adjustment mechanism” [ref: a248.1/4]. She highlighted engagement—“we convened the first ministerial roundtable with the refining industry in more than a decade” [ref: a249.1/2]—and announced a “call for evidence to inform the UK’s long-term strategy for the downstream oil sector” [ref: a249.1/2–a249.1/3]. On Grangemouth, she said that, after taking office, the UK and Scottish Governments put together a £100 million package and are supporting new investment, including “£3 million” for MiAlgae to “create over 130 direct jobs… and 310 jobs across Scotland” [ref: a249.1/3; a249.1/5]. The motion was agreed to: “Resolved, That this House has considered the future of the oil refining sector” [ref: a250.2/4].