European policymakers are signalling a potential softening of new carbon-related costs on fertilisers, following growing concern about the impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) on farmers and input markets.

Earlier this month, Reuters reported that France and Italy are pushing for fertilisers to be temporarily exempted from the EU’s CBAM, warning that the levy risks driving up costs at a time when farm margins are already under pressure. The carbon border levy, which began applying this year, places a charge on imported fertilisers based on the carbon emissions generated during their production.

Now, further clarity has emerged from Brussels. According to Bloomberg, the European Commission is preparing to propose a temporary suspension of most-favoured nation tariffs on fertilisers, including ammonia. The move is aimed at easing the additional cost burden farmers are facing as a result of CBAM.

EU Trade Commissioner Maroš Šefčovič confirmed that the Commission will also issue guidance on a mechanism first proposed in December, which would allow for a temporary suspension of CBAM on certain goods — including fertilisers — if market monitoring highlights “unforeseen circumstances.” His comments followed a public statement by French Agriculture Minister Annie Genevard, who said the EU was set to suspend CBAM on fertilisers in response to market pressures.

While EU officials remain committed to the long-term aim of reducing carbon leakage and encouraging lower-emission production, there is growing recognition that fertiliser occupies a unique and critical role in food production, and that sudden cost increases risk distorting markets and limiting availability.

What does this mean for UK farmers?

Although the UK is no longer part of the EU, developments in European fertiliser policy matter. The UK is due to introduce its own CBAM from 2027, with fertiliser included in scope, and EU policy decisions can influence import flows, pricing and availability across the wider European market.

Any temporary easing of EU tariffs or carbon charges could affect supply dynamics into the UK, particularly for nitrogen and ammonia-based products, at a time when many growers are already planning nutrient strategies for upcoming seasons.

Talk to us about fertiliser supply and strategy

With carbon policy, tariffs and supply conditions all evolving, now is the time to review your fertiliser plans. We’re actively monitoring market developments and working with suppliers to help customers secure the right products, at the right time, with clarity on future risks and costs.

👉 If you’d like to discuss fertiliser availability, pricing, or how CBAM could affect your business, get in touch with our team today. We arhappy to talk through options and help you plan with confidence.

Sources: Reuters and Bloomberg

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