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France and Italy are calling on the European Commission to exempt fertilisers from the bloc’s carbon border tax, which requires EU importers to pay for the pollution caused by products entering the EU, according to two documents seen by Euronews.
French and Italian officials are concerned that the country’s agricultural sector will be exposed to a “significant increase” in the cost of fertilisers imported into the EU, with the French estimating prices to rise by around 25% due to the new taxes.
“Such a postponement would ease tensions in the crop farming sector and give economic operators time to restore the satisfactory fertilizer supply conditions for the 2026 crop year,” said a letter sent by the French seen by Euronews.
Fertilisers are essential in agriculture for replenishing soil nutrients, like nitrogen, to boost crop yields and ensure food security, despite their environmental challenges.
However, the vast amount of energy required to manufacture these chemicals will ultimately be reflected in the EU’s carbon border tax.
The EU’s carbon border tax, the Carbon Border Mechanism Adjustment (CBAM), currently covers nitrogen fertilisers, such as ammonia, compound and mineral fertilisers, and other fertilisers with significant emissions from production processes.
While France backs the levy as a whole, dubbing it a “fundamental tool” for strengthening carbon pricing and ensuring fair competition with third countries, Paris expressed concerns that the law will inevitably increase costs for already struggling farmers facing weak crop prices and higher fertiliser import costs, namely from Russia.
Algeria, Belarus, China, Egypt and the United States are some of the most prominent countries that sell fertilisers to the EU. Fertilisers from Belarus and Russia were hit by EU tariffs last summer.
These would operate under such regime even if the Franco-Italian proposal is applied, the Italian minister Lollobrigida said.
More measures to support European farmers
A second letter, signed by the Italian agriculture ministry urges the Commission to consider further parallel measures to benefit farmers “in the immediate future”.
This could be achieved by scrapping duties on fertilisers imported from third countries, the Italian minister said.
“The alarming market situation suggests that a suspensive clause on CBAM effects for fertilisers should be activated as soon as possible,” reads the Italian letter addressed to Commissioner for Agriculture Christophe Hansen.
Fertilisers Europe, a Brussels-based trade association, said the entry into force of the financial mechanism under CBAM would bring “high financial uncertainties” for EU fertiliser blenders and importers, preventing them from placing further fertiliser orders.
“With 50% of EU fertiliser supplies sourced from third countries and current stocks covering only around 60% of next year’s needs, this uncertainty threatens the trade of fertilisers and continuity of fertiliser availability for European farmers,” Fertilisers Europe said in a statement.
EU agriculture ministers meet in Brussels
EU ministers will meet in Brussels on Wednesday to discuss a possible CBAM exemption, as European governments debate ways to approve the controversial Mercosur trade deal with Latin American countries, including Brazil, which would see duties come down across the board but also open the European single market to South American goods.
On January 6, the Commission announced access to €45 billion of funding under the next Common Agricultural Policy budget as soon as 2028 to appease farmers.
France has been rallying support from member states to back its exemption proposal on fertilizers, according to two EU officials.
“We are looking at the French proposal,” one EU diplomat told Euronews.
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