EU keeps carbon border tax unchanged despite fertiliser price crisis

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🗞️ Driving the news: The European Commission has decided to maintain its Carbon Border Adjustment Mechanism (CBAM) on fertilisers, despite soaring prices linked to the Middle East conflict and rising costs for farmers
• The move keeps roughly 45% of EU fertiliser imports subject to carbon pricing

🔭 The context: Fertiliser producers argue CBAM protects domestic industry from cheaper imports produced under lower environmental standards, while farmers fear higher production costs are being passed to them
• Commissioner Christophe Hansen emphasized that scrapping CBAM would undermine European competitiveness, but promised targeted subsidies, strategic investment, and crisis support to ease immediate pressures on farmers

🌍 Why it matters for the planet: Maintaining CBAM supports Europe’s climate goals by preventing carbon leakage and encouraging cleaner production abroad
• It preserves incentives for low-emission fertiliser manufacturing and reinforces EU leadership in carbon pricing, even as supply chain impacts raise food inflation risks

⏭️ What’s next: The EU is expected to investigate how CBAM and ETS costs cascade through the fertiliser supply chain and mobilize additional funds, potentially doubling the €200 million crisis reserve, to support affected farmers
• Negotiations with the European Parliament and Council will determine final financial support measures

💬 One quote: “Farmers' concerns about input costs are real, but the answer is not to weaken the instrument that keeps European fertiliser producers and importers on an equal footing.” – Leon de Graaf, Business for CBAM Coalition

📈 One stat: CBAM applies to approximately 45% of EU fertiliser imports

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