Italy and France seek exemption on fertilisers from EU's carbon border tax

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illuminem summarises for you the essential news of the day. Read the full piece on Euronews or enjoy below:

🗞️ Driving the news: France and Italy are urging the European Commission to temporarily exempt fertilisers from the EU’s carbon border tax, which entered into force on January 1
• They warn the measure could raise fertiliser prices by up to 25%, intensifying pressure on already struggling farmers and threatening agricultural competitiveness

🔭 The context: The request targets the EU’s Carbon Border Adjustment Mechanism (CBAM), designed to prevent carbon leakage by pricing emissions embedded in imports
• Fertilisers are energy-intensive to produce and heavily imported into the EU, with around half of supplies coming from third countries such as Russia, the US, and North Africa

🌍 Why it matters for the planet: Fertilisers are a major source of industrial emissions, particularly nitrogen-based products linked to fossil fuel use
• Weakening CBAM could slow emissions reductions in one of agriculture’s most carbon-intensive supply chains, potentially undermining the EU’s climate credibility
• At the same time, poorly managed cost shocks risk backlash against climate policies, threatening long-term environmental progress

⏭️ What's next: EU agriculture ministers are meeting in Brussels to assess the exemption request as the Commission balances climate ambition with food security and farmer support
• Any delay or carve-out could set a precedent for other CBAM-covered sectors, ahead of broader trade talks and upcoming reforms to EU agricultural subsidies

💬 One quote: “Such a postponement would ease tensions in the crop farming sector and give economic operators time,” the French government wrote to the Commission

📈 One stat: Around 50% of EU fertiliser supplies are imported from non-EU countries

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