An EU farm organisation has again warned of the impact of a new carbon tax on fertiliser imports, with EU imports of nitrogen fertiliser collapsing in the first month of the year.

The Carbon Border Adjustment Mechanism (CBAM) is effectively a tax on imports of carbon-intensive products into the EU, including fertiliser.

From the start of this year, it has required economic operators, including fertiliser suppliers, to pay for certificates to import these products.

The measure has prompted concern and criticism from farm organisations and sector stakeholder, including fertiliser suppliers.

These concerns are centred around the additional cost that will be placed on fertilisers, and the additional regulatory and compliance burden for economic operators.

There is significant concern over the fact that the European Commission will only set the price of certificates retrospectively, i.e. the price of certificates for quarter one of the year will not be known until quarter two, and so on.

Concerns have frequently been highlighted over fertiliser suppliers being asked to provide quotes for supplies without knowing what the cost of the CBAM certificates for those supplies will be.

If the fertiliser import figures for January are anything to go by, these concerns may prove to be correct.

Last month, the EU imported less than 200,000t of nitrogen fertiliser. This is only about 17% of the 1.18 million tonnes imported in January 2025.

Copa Cogeca, which represents EU farm organisations and agricultural co-operatives, said that the figures "confirm a dramatic and unprecedented collapse in EU nitrogen fertiliser imports, following the entry into force of the CBAM".

The organisation described the fall in fertiliser imports as "a harsh reality that is now knocking at the EU's door".

"Farmers and agri co-operatives organisations have consistently cautioned EU institutions that, without the necessary technical safeguards and market preparedness, the implementation of CBAM on fertilisers would disrupt supply flows and increase costs for European farmers," the group said.

According to Copa, nitrogen fertilisers account for around 46% of total EU consumption, with more than 30% of this volume traditionally imported.

"It poses a direct threat to the stability of agricultural production across the EU, destabilising markets by triggering anticipatory behaviours, as seen in December 2025 just prior to the [CBAM] implementation," Copa said.

The EU farm organisation also said that the price of EU-produced fertilisers continue to rise, with prices up 25% last month compared to the average price for 2024.

"Considering that fertilisers account for 15% to 30% of farmers’ input costs [on] average, and that the arable crops sector is already under severe pressure, with negative margins recorded for the third consecutive year, this situation could quickly become the tipping point in many member states," Copa warned.