Proposed New EU Carbon Tax on Fertiliser a Step Too Far – IFA
IFA President Francie Gorman has slammed EU plans to introduce a further tax on fertiliser from January 1st, 2026, via the proposed introduction of the Carbon Border Adjustment Mechanism (CBAM). CBAM is a proposed carbon tariff on specific products imported into the EU of which Fertiliser is one.
“If introduced as proposed, this will place a further tariff on fertiliser imported into the EU from third countries,” Francie Gorman said.
“The EU is on the cusp of introducing new tariffs on Russian and Belorussian fertiliser imports which is understandable in the context of the Russia Ukraine conflict. But to then come along and introduce another levy on fertiliser next January is beyond belief,” the IFA President outlined.
Inorganic fertiliser plays a pivotal role in the Irish farming sectors, allowing us to maximise our unique European climatic conditions by maximising the yields of both grass and cereals. This, in turn, supports food production within Ireland and is a key driver of the economic performance of Irish agriculture.
Ireland imports significant quantities of Urea from outside of the EU and would therefore be one of the most impacted countries in the EU from this proposed tariff.
“Farmers are already grappling with the additional costs associated with using Protected Urea. This proposed tariff would make Protected Urea less competitive in comparison to CAN fertiliser and could well lead to farmers switching back to CAN, directly contravening a key objective of Ireland’s Climate Action Plan which is to encourage grassland farmers to switch from using CAN fertiliser to Protected Urea,” Francie Gorman said.
Minister Heydon needs to make sure that this new tariff on fertiliser does not go ahead. The EU Commission is planning on introducing a simplification package later this year; it is absolutely critical that the Minister ensures fertiliser is removed from the CBAM framework in order to avoid a further hike in fertiliser prices for farmers,” he concluded.
