EU keeps carbon border tax unchanged despite fertiliser price crisis

Published connected 19/05/2026 - 19:28 GMT+2•Updated 19:35

The European Commission kept its c borderline taxation unchanged successful a fertiliser program announced connected Tuesday meant to enactment struggling farmers, contempt complaints that c pricing is besides contributing prices amid ongoing struggle successful the Middle East.

Fertiliser producers reason that the bloc's c pricing rules astatine the borderline support the European manufacture from cheaper imports produced nether weaker biology rules, since the rules oblige EU exporters to wage for the contamination linked to their production. But farmers fearfulness they are indirectly paying the measure done higher fertiliser costs.

European Commissioner for Agriculture Christophe Hansen said that scrapping the bloc's Carbon Border Adjustment Mechanism (CBAM), which would use to astir 45% of EU fertiliser imports, would beryllium a "false bully idea" citing competitiveness issues.

"We person a home manufacture for fertilisers successful respective subordinate states which are nether unit due to the fact that they're dealing with a concern of unfair contention coming from 3rd countries if CBAM is not successful place," Hansen told reporters.

With the caller plan, the European Commission is seeking to support the bloc's flagship c borderline argumentation portion acknowledging that clime costs are progressively being passed done to farmers and nutrient prices.

The EU enforcement argues that c pricing, specified arsenic revenues from the Emissions Trading System and CBAM, are indispensable to preventing industries moving to locations with little strict biology rules and maintaining Europe’s clime leadership.

But the Commission besides concedes that the fertiliser assemblage occupies a uniquely delicate presumption due to the fact that higher concern costs yet cascade into workplace economics and user nutrient inflation.

The Commission is present promising a deeper probe into however ETS and CBAM costs are passed done the proviso concatenation — from fertiliser factories to farmers and yet supermarket prices.

Rather than abandoning c pricing, the EU appears acceptable to brace it with subsidies, authorities aid, marketplace protections and strategical concern to shield politically delicate sectors specified arsenic agriculture.

Irish MEP Billy Kelleher (Renew Europe) told lawmakers successful Strasbourg connected Tuesday that rising fertiliser prices are putting immense unit connected farmers and connected outgo of surviving done nutrient ostentation and backed the suspension of CBAM and "any argumentation measures that are putting burdens and costs" connected fertiliser successful the short-term.

"The extremity is to person a factual fiscal instrumentality earlier the summer, erstwhile the farmers request to determine which crops to works for the adjacent season," Hansen said.

Leon de Graaf, from the conjugation if Business for CBAM Coalition said that it was a "relief" to spot the EU enforcement holding the enactment connected CBAM alternatively of carving retired fertilisers.

"Farmers' concerns astir input costs are real, but the reply is not to weaken the instrumentality that keeps European fertiliser producers and importers connected an adjacent footing," said De Graaf.

Hansen said that €200 cardinal remains successful the bloc's cultivation large fund's situation reserve and expressed intentions to "at slightest treble this amount" to enactment farmers.

In addition, the Commission volition supply targeted "exceptional support" to the astir affected farmers and much wealth volition beryllium mobilised nether the EU fund "to reenforce agriculture research".

However, the magnitude is inactive nether treatment pending governmental talks betwixt the EU co-legislators, the European Parliament and the Council, the Commissioner said.