The European Union is actively discussing the possibility of temporarily exempting fertilizers from the Carbon Border Adjustment Mechanism (CBAM), which is set to take effect on January 1, 2026. CBAM involves the introduction of a special levy for importers of goods such as fertilizers, steel, aluminum, cement, and others, aimed at ensuring a level playing field for European and foreign producers regarding CO2 emission costs.
This is reported by Finway
France and Italy Advocate for Support for Farmers
The governments of France and Italy have initiated discussions regarding a temporary postponement of the levy on imported fertilizers to protect European farmers from additional financial burdens. According to documents reviewed by Reuters, these countries are concerned about the economic difficulties facing the agricultural sector, which have arisen due to low grain prices and rising costs, particularly for fertilizer imports from Russia.
Calls to the European Commission and Response from the Agricultural Sector
In a statement prepared by France and circulated to other EU countries for support, the necessity of temporarily suspending the carbon tariff on imported fertilizers is emphasized. The document states that this would help alleviate tension in the agricultural sector and provide producers with more time to adapt the fertilizer supply market in 2026.
“Such a postponement will reduce tension in the agricultural sector and give economic operators time to restore satisfactory fertilizer supply conditions in 2026,” the draft statement quoted by the agency reads.
Officially, France supports the implementation of CBAM; however, it warns that applying this mechanism to imported fertilizers could lead to significant cost increases for farmers. Italian Minister of Agriculture Francesco Lollobrigida has also appealed to European Commissioner for Agriculture Christoph Hansen to consider the challenging market situation and the potential impact on prices by canceling CBAM for fertilizers.
The issue of suspending CBAM for fertilizers was raised during a meeting of EU agriculture ministers that took place on Wednesday.