Finance
EU Resists French Request to Pause Carbon Border Tax on Fertilisers
Published by Global Banking & Finance Review®
Posted on March 30, 2026
3 min readLast updated: March 30, 2026
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The European Commission on March 30 rejected France’s and other countries’ push to suspend the EU’s Carbon Border Adjustment Mechanism (CBAM) on fertilisers, citing risks of increased import dependence. Instead, Brussels plans an urgent April 13 meeting to support domestic fertiliser production and
EU Rejects France's Request to Suspend Carbon Border Tax on Fertilisers
By Kate Abnett and Gus Trompiz
EU Stance on Carbon Border Levy for Fertilisers
Commission's Response to Suspension Requests
BRUSSELS, March 30 (Reuters) - The European Commission again resisted a request on Monday by France and other countries to suspend the EU’s CO2 emissions levy on imported fertilisers, which the governments said would help farmers struggling with high prices.
Addressing a meeting of EU farming ministers in Brussels, EU Agriculture Commissioner Christophe Hansen said high fertiliser prices were a source of concern for the farming sector, but that suspending the carbon border levy "risks worsening the dependency on imports. And therefore we must be very careful on this issue."
Planned Measures and Industry Consultation
The EU is working on a plan to address issues in fertilisers markets, and will convene an “urgent” meeting on April 13 with industry on measures to support European fertiliser production and reduce dependencies, Hansen said.
Alternative Solutions Proposed
Speaking in a news conference after the meeting, Hansen said he would look in to the impact of a possible suspension, but that he believed a better option would be to spend revenue collected by the levy on stabilising prices for farmers.
Background on the Carbon Border Levy
The EU carbon border levy, which launched on January 1, imposes a fee on the emissions associated with imported goods including fertilisers, steel and cement. The system, the first of its kind in the world, aims to protect European industries from being undercut by cheaper products from countries with weaker climate rules.
Member States' Reactions and Economic Impact
Calls for Suspension from France and Others
France, Italy and Croatia are among the countries to call for it to be suspended for fertilisers.
Impact of Geopolitical Events
French Agriculture Minister Annie Genevard said on Monday the disruption to shipments caused by the Iran war was making the situation worse by raising the cost of urea, a key ingredient for fertilisers.
"Production costs have increased, so there is an economic impasse for producers," Genevard said, adding that France was requesting a "temporary" suspension of the levy.
The French government, which has faced regular protests from farmers in the past two years, already requested the exemption for fertilisers in January.
Opposition from European Fertiliser Producers
European fertiliser producers have opposed suspending the levy.
Potential for Future Amendments
While Brussels has declined a short-term pause, EU countries are negotiating an amendment to the border levy which could allow temporary exemptions in future years, once the amendment enters into law.
(Reporting by Kate Abnett in Brussels and Gus Trompiz in Paris; Editing by Matthew Lewis)
Key Takeaways
- •France, Italy and others requested a temporary suspension of the CBAM on fertilisers to alleviate soaring costs for farmers; estimated price hikes are around 25 % (euronews.com).
- •EC Agriculture Commissioner Christophe Hansen reiterated resistance to suspension, warning it could worsen import dependency, and prefers using CBAM revenues to support farmers (agenceurope.eu).
- •The Commission proposed interim relief measures: suspending MFN duties on key nitrogen fertilisers (ammonia, urea) via duty‑free quotas, along with reduced CBAM mark‑up (1 % instead of 10 %) (cna.org.cy).
- •An "urgent" industry meeting is set for April 13 to explore ways to bolster European fertiliser production and reduce reliance on imports (euronews.com).
References
Frequently Asked Questions about EU resists French request to pause carbon border tax on fertilisers
1What is the EU carbon border tax on fertilisers?
It is a CO2 emissions levy imposed on imported fertilisers and other goods to protect EU industries and address climate concerns.
2Why did France request a suspension of the carbon border tax?
France requested a pause to help farmers cope with rising fertiliser prices, especially due to disruptions from geopolitical tensions.
3What is the EU's response to calls for suspending the carbon border levy?
The European Commission has resisted suspension, citing risks of increased import dependency, but is considering using levy revenue to stabilise prices.
4Which countries support suspending the fertiliser levy?
France, Italy, and Croatia have called for temporarily suspending the carbon border tax on fertilisers.
5Will there be changes to the carbon border tax policy?
EU countries are negotiating amendments which could allow future temporary exemptions for fertilisers.
