The EU’s fertiliser action plan, due to be announced this Tuesday afternoon, seems poised to make no urgent move on the carbon border adjustment measure (CBAM).
The plan is the European Commission’s response to elevated fertiliser prices caused most recently by the conflict in the Middle East, which has paralysed the movement of fertiliser globally, particularly affecting Europe.
There will be a review of free allocations under the emissions trading scheme, which could see CBAM abated. However, this process will take some time.
Fertiliser prices soared in 2022 following Russia’s invasion of Ukraine. While they have come back since, prices were about 40% higher at the start of the year than they were before that earlier conflict. The US-Israel-Iran conflict has seen a further spike in prices.
Further hike
In January of this year, fertiliser prices were hiked further by the introduction of CBAM, which is set to cost farmers across the EU an estimated €900m this year.
It is projected to cost Irish farmers over €11m in its first year of operation and will rise significantly each year to 2034. Urea products have been most affected, despite protected urea being the preferred product for farmers to use from a carbon emissions viewpoint.
A tariff adjustment announced by the European Commission in January was described as delivering a “limited reduction” to fertiliser prices in Ireland, according to the Department of Agriculture.
Farm leaders from all across Europe will protest in Brussels at the slow response from the European Commission to the hike in fertiliser prices – nitrogen in particular – since the conflict began in the Middle East earlier this year.
Biogas and biomethane production will be incentivised under the plan. The most optimistic timeline would be that it would take a decade for that to have any impact on fertiliser production in Ireland.
The allowing of advance CAP payments and CAP emergency funding is being described as “robbing Peter to pay Paul” by farmers, as it fails to introduce new funding, but merely moves funding around.
Island nation
As an island nation, Ireland is particularly affected by hikes in input costs.
“It’s hard to overstate how far off the pace the Commission is when it comes to the fertiliser issue in Ireland and across the EU,” said Irish Farmers Association president Francie Gorman en route to Brussels for Tuesday’s COPA-COGECA protest.
“Unless they intervene, we are looking at a very serious situation in terms of food production. It’s inexplicable that this is not getting the attention it should be getting.”
Gorman added that the leaks of the Commission proposals will “do nothing to address the availability or price of fertiliser”.
The EU’s fertiliser action plan, due to be announced this Tuesday afternoon, seems poised to make no urgent move on the carbon border adjustment measure (CBAM).
The plan is the European Commission’s response to elevated fertiliser prices caused most recently by the conflict in the Middle East, which has paralysed the movement of fertiliser globally, particularly affecting Europe.
There will be a review of free allocations under the emissions trading scheme, which could see CBAM abated. However, this process will take some time.
Fertiliser prices soared in 2022 following Russia’s invasion of Ukraine. While they have come back since, prices were about 40% higher at the start of the year than they were before that earlier conflict. The US-Israel-Iran conflict has seen a further spike in prices.
Further hike
In January of this year, fertiliser prices were hiked further by the introduction of CBAM, which is set to cost farmers across the EU an estimated €900m this year.
It is projected to cost Irish farmers over €11m in its first year of operation and will rise significantly each year to 2034. Urea products have been most affected, despite protected urea being the preferred product for farmers to use from a carbon emissions viewpoint.
A tariff adjustment announced by the European Commission in January was described as delivering a “limited reduction” to fertiliser prices in Ireland, according to the Department of Agriculture.
Farm leaders from all across Europe will protest in Brussels at the slow response from the European Commission to the hike in fertiliser prices – nitrogen in particular – since the conflict began in the Middle East earlier this year.
Biogas and biomethane production will be incentivised under the plan. The most optimistic timeline would be that it would take a decade for that to have any impact on fertiliser production in Ireland.
The allowing of advance CAP payments and CAP emergency funding is being described as “robbing Peter to pay Paul” by farmers, as it fails to introduce new funding, but merely moves funding around.
Island nation
As an island nation, Ireland is particularly affected by hikes in input costs.
“It’s hard to overstate how far off the pace the Commission is when it comes to the fertiliser issue in Ireland and across the EU,” said Irish Farmers Association president Francie Gorman en route to Brussels for Tuesday’s COPA-COGECA protest.
“Unless they intervene, we are looking at a very serious situation in terms of food production. It’s inexplicable that this is not getting the attention it should be getting.”
Gorman added that the leaks of the Commission proposals will “do nothing to address the availability or price of fertiliser”.