Irish govt backs proposed EU CBAM off switch during market shocks
The Irish Government backs the proposed safeguard within the EU European Union Carbon Border Adjustment Mechanism (CBAM) that would allow the system to be temporarily suspended in certain circumstances.
Farmers across Europe have warned that CBAM, which came into force in January, is pushing up the price of fertiliser.
The Commission has argued that CBAM - which is chiefly a carbon import tax on carbon-intensive products - is at the heart of the EU's climate framework to decarbonisation the economy.
However Copa and Cogeca have carried out an initial estimate that suggests over a seven-year period the cost of CBAM for farmers could reach €39 billion.
Earlier this week the European Commission unveiled a new Fertiliser Action Plan which it said will "support farmers facing rising fertiliser costs and scarcity".
As part of this plan the commission said that it will work on a report assessing how costs related to the CBAM and Emission Trading System (ETS) are passed on to fertiliser prices paid by farmers.
But in the meantime as the Irish government has acknowledged the crisis in the Middle East is putting immediate pressure on fertiliser prices.
CBAM
According to a spokesperson the Irish Government it is currently considering the EU Commission's Fertiliser Action Plan.
The spokesperson told Agriland that the government welcomes the focus on fertiliser at EU level and the "recognition that it is a significant farm input and impacting the cost of food production".
"Government has supported the inclusion of a mechanism at EU level to allow for the suspension of CBAM in the event of serious and unforeseen disruptions.
"However, a suspension is not in our gift as the addition of a mechanism to do so requires agreement across all member states," the spokesperson added.
The Irish Government also supports "the objective of Article 27a within CBAM" - which is an emergency brake that can be applied if CBAM is seen to result in serious market disruption within the EU.
This effectively could temporarily remove fertiliser products from CBAM rules.
According to the spokesperson the Irish Government is continuing to engage with the EU Commission in relation to this.
The spokesperson also added: "Government has recognised the exceptional pressure of increased energy costs on the agricultural sector with the allocation of the €100 million Fuel Subsidy Scheme
"Agriculture in the EU as a whole is vulnerable to shocks in the availability and price of fertiliser due to limited internal production capacity and a reliance on imports.
"Ireland does not produce fertilisers and therefore is exposed to market shifts".
The spokesperson added that the government appreciates "the challenges" facing farmers on fertiliser.
