By Abbas Nazil
France and Italy have urged the European Commission to exempt imported fertilisers from the EU’s newly implemented carbon border tax, arguing that the measure threatens the competitiveness of European farmers.
The bloc’s carbon border tax, officially known as the Carbon Border Adjustment Mechanism (CBAM), came into force on January 1 and requires EU importers to pay for the pollution associated with products entering the union.
French and Italian officials have expressed concerns that the agricultural sector could face a sharp increase in fertiliser costs, with French estimates suggesting prices could rise by around 25 percent as a result of the new duties.
A letter from France accessed by Euronews stated that a postponement of the tax would ease tensions in the crop farming sector and allow economic operators time to restore satisfactory fertiliser supply conditions for the 2026 crop year.
Fertilisers play a critical role in agriculture by replenishing soil nutrients, including nitrogen, to boost crop yields and support food security, although their production is energy-intensive and contributes significantly to carbon emissions.
The CBAM currently targets nitrogen fertilisers, including ammonia, compound, and mineral fertilisers, which have high emissions during production.
While France supports the overall mechanism as a tool to strengthen carbon pricing and ensure fair competition, Paris warned that it would increase costs for farmers already struggling with low crop prices and rising import costs, particularly from Russia.
Major fertiliser exporters to the EU include Algeria, Belarus, China, Egypt, and the United States, with Belarus and Russia already affected by EU tariffs introduced last summer.
Italy’s agriculture ministry has also called for additional measures to support farmers, including suspending duties on fertilisers imported from third countries.
Italian Minister Francesco Lollobrigida emphasized that the current market situation necessitates immediate action to prevent disruptions in supply and trade.
Fertilisers Europe, a Brussels-based trade association, warned that the entry into force of CBAM brings high financial uncertainty for EU fertiliser blenders and importers, as half of the EU’s fertiliser supply comes from third countries and current stocks cover only about 60 percent of next year’s needs.
EU agriculture ministers are scheduled to meet in Brussels to discuss a possible CBAM exemption and other support measures for farmers.
This discussion coincides with ongoing debates about approving the Mercosur trade deal with Latin American countries, which would reduce duties but also open the European market to South American goods.
The European Commission has announced access to €45 billion in funding under the next Common Agricultural Policy budget by 2028 to support farmers amid the implementation of the CBAM.
France is actively rallying support from other EU member states to back its exemption proposal, as European governments balance climate goals with economic and agricultural competitiveness concerns.
Officials say that the exemption and related measures could provide crucial relief for farmers while maintaining the EU’s broader climate strategy, highlighting the complex intersection of environmental regulation, trade policy, and agricultural sustainability.
The situation illustrates the challenges faced by the EU in implementing carbon pricing mechanisms without undermining domestic agricultural production and food security.
