Exxon Mobil warns: If carbon costs continue to rise, the UK refining industry may collapse entirely

Exxon Mobil (XOM.US) warned on Wednesday that if carbon emission costs in the UK continue to rise while overseas competitors are not subject to the same restrictions, the local refining industry in the UK may ultimately collapse completely.

Exxon stated that the refining industry should be included in the so-called "carbon border adjustment mechanism," which imposes fees on imported goods with lower environmental standards. Due to high costs and fierce competition from refineries in Africa and Asia, two refineries in the UK have already closed this year.

Paul Greenwood, Chairman of Exxon UK, pointed out that the European refining and chemical industries have been impacted by high carbon costs in recent years. At the company's Fawley refining and chemical complex in England, emission costs are expected to nearly double to £150 million over the next four to five years, and he indicated that the company is not asking the government for funding, but simply requesting a fair competitive environment