EU Keeps Carbon Border Tax on Fertiliser Imports in New Farm Support Plan

The European Commission announced a fertiliser support plan on Tuesday that leaves the bloc's carbon border tax unchanged. The plan seeks to assist farmers dealing with higher input costs while maintaining the EU's emissions pricing rules. Fertiliser producers say the Carbon Border Adjustment Mechanism protects European manufacturers from imports produced under weaker environmental standards.

Farmers have raised concerns that the same rules contribute to higher fertiliser prices.

Commissioner for Agriculture Christophe

Hansen said removing the mechanism from roughly 45 percent of EU fertiliser imports would create unfair competition for domestic producers. He told reporters that several member states maintain fertiliser industries under pressure from third-country imports.

The Commission argues that carbon pricing revenues help prevent industries from relocating to countries with less strict environmental rules. It also acknowledges that higher costs in the fertiliser sector can affect farm economics and consumer food prices.

The Commission said it will investigate how Emissions Trading System and carbon border costs move through the supply chain to farmers and supermarket prices. It plans to pair the existing rules with subsidies, state aid, and research funding rather than change the pricing system.

Irish MEP Billy Kelleher told lawmakers that rising fertiliser prices are increasing pressure on farmers and food costs. He supported temporary suspension of the mechanism and other measures that add costs to fertiliser production. Hansen said 200 million euros remain in the agricultural crisis reserve and that the Commission intends to at least double that amount.

The Commission will also provide targeted support to the most affected farmers and increase funding for agricultural research. The final amount of additional support remains under discussion between the European Parliament and the Council.