Specific Details
Carbon Border Adjustment Mechanism (CBAM)
Intended results
To highlight that the introduction of the Carbon Border Adjustment Mechanism (CBAM) at the beginning of 2026 has brought increased fertiliser prices that have since been compounded by the recent energy crisis.
That the European Commission had recognised the potential for destabilisation of the market by introducing Article 27a in the proposed regulation which provides for a safeguard mechanism allowing the temporary suspension of CBAM on specific goods in times of crisis. In January this year, the Council of Agriculture Ministers recognised this measure and fully endorsed its inclusion.
To stress that IFA and European farmers are deeply concerned that the Environment Committee has deleted Article 27a in their draft report. Fertilisers typically account for between 15% and 30% of farmers' production costs and recent price increases have negatively impacted farmers' margins. In January and February this year, following the implementation of CBAM, prices increased on average by 15% compared to November 2025 levels, with urea rising from below €500 per tonne to €570–600 per tonne.
Urea prices now exceed €800 per tonne and continue to rise.
To call upon Irish MEPs to support the retention of Article 27a, as proposed by the Commission, for fertilisers, so that Irish and European farmers can benefit from temporary relief in times of crisis. An increase in fertiliser prices during times of crisis represents a risk for food security and adds to inflationary pressures. Consequently, the possibility to temporarily suspend CBAM for fertilisers at such times is essential.
To highlight that while the most recent increases are linked to geopolitical developments, the CBAM levy alone represents an average price increase of around 15% for imported fertilisers in 2026. Moreover, EU-produced fertilisers have aligned their prices accordingly. The CBAM levy is also set to increase progressively until 2034. The cost of the CBAM levy itself is estimated at around €820m in 2026, rising to €3.386bn in 2034. Over the next seven years, this amounts to approximately €12bn.
Aodhán Ó Ríordáin
MEP (European Parliament)
Barry Andrews
MEP (European Parliament)
Barry Cassidy
Special Adviser (Department of Agriculture, Food and the Marine)
Barry Cowen
MEP (European Parliament)
Billy Kelleher
MEP (European Parliament)
Brian Purcell
Adviser to Minister (Department of Agriculture, Food and the Marine)
Ciaran Mullooly
MEP (European Parliament)
Cynthia Ní Mhurchú
MEP (European Parliament)
Jack O'Donnell
Special Advisor to the Tanaiste (Department of Finance)
Kathleen Funchion
MEP (European Parliament)
Luke Ming Flanagan
MEP (European Parliament)
Lynn Boylan
MEP (European Parliament)
Maria Walsh
MEP (European Parliament)
Martin Heydon
Minister (Department of Agriculture, Food and the Marine)
Michael McNamara
MEP (European Parliament)
Nina Carberry
MEP (European Parliament)
Regina Doherty
MEP (European Parliament)
Sarah Bardon
Chief of Staff (Department of Finance)
Sean Kelly
MEP (European Parliament)
Simon Harris
Tánaiste and Minister (Department of Finance)
Sinead McPhillips
Secretary General (Department of Agriculture, Food and the Marine)