BRUSSELS — Pressure is mounting on the European Commission to exempt fertilizers from its new carbon tariff scheme, as national capitals side with farmers over industry to unpick one of the EU’s newest climate policies.
During a discussion requested by Austria on Monday, 12 countries called for a temporary exclusion of fertilizers from the European Union’s carbon border adjustment mechanism (CBAM), a levy on the greenhouse gas emissions of certain goods imported into the bloc.
They argued that CBAM, which only became fully operational on Jan. 1, is sending already-rising fertilizer even higher, adding to economic difficulties for crop farmers.
“European arable farmers are currently facing not just low producer prices, but also rising production costs. The main cost drivers are fertilizer prices, which have increased markedly since 2020,” Johannes Frankhauser, a senior official in Austria’s agriculture ministry, told ministers gathered in Brussels. Eleven countries backed Vienna in Monday’s meeting.
