European fertilizer factories reject the European Commission's proposal to abandon the introduction of the CBAM environmental levy on imports of non-European fertilizers.
According to the fertilizer manufacturers, Brussels should maintain the additional levy on (cheaper) Russian fertilizers in order to stimulate the EU industry to break open that market.
Brussels is considering refraining from this to accommodate European farmers and thereby ease their pain caused by the Mercosur treaty. That penalty on imports of cheap fertilizers raises their production costs.
According to the EU manufacturers, allowing cheaper Russian fertilizers for a longer period could lead to additional pressure on European production. They warn that this could have consequences for investments and employment in the European fertilizer sector. Concrete impacts per country or company are not yet clear.
Within the European Union, several countries advocate for an exception or temporary suspension of the CBAM border tax on fertilizers. The issue will be discussed later this month in consultation structures between EU countries and the European Commission. The topic is on the agenda of meetings where agriculture and trade converge. A final decision has not yet been made.
Other parties are also following the discussion critically. Companies active in cleaner production technologies warn that easing environmental regulations could conflict with existing EU climate targets.