Several members of the European Parliament’s Committee on Agriculture expressed concern, on Tuesday 9 November, about the inclusion of fertilisers in the future Carbon Border Adjustment Mechanism in the ‘Fit for 55’ package (see EUROPE 12826/8).
The Parliament’s Committee on Agriculture debated the draft opinion of Zbigniew Kuźmiuk (ECR, Poland) on the proposal for a regulation establishing a Carbon Border Adjustment Mechanism (CBAM).
Mr Kuźmiuk mentioned, among other things, the risk of the EU market being flooded with environmentally unfriendly products from third countries, the impact of the mechanism on price increases and the need to include agricultural products in the Carbon Border Adjustment Mechanism at a later stage.
In particular, the rapporteur calls on the European Commission to extend the Carbon Border Adjustment Mechanism to imported agricultural products “as soon as possible”.
On behalf of her group, Anne Sander (EPP, France) noted that mineral and nitrogen fertilisers would be covered by this mechanism, while such an inclusion “risks increasing agricultural production costs in Europe”, especially as European fertiliser production is insufficient. Ms Sander called for “flexibility measures to facilitate supply in the event of a supply crisis”. She supported the rapporteur’s opinion to include the agricultural sector in a second phase, from 2026.
Eric Andrieu (S&D, France) once again raised the issue of reciprocity of standards for agricultural imports (level playing field). In his view, agricultural products should be given priority when it comes to extending this mechanism to indirect emissions. “The increase in fertiliser prices must be compensated for” so that EU producers are not put at a disadvantage against imports, he argued.
Free quotas. The implementation of the Carbon Border Adjustment Mechanism will require a transition period to take over from free allowances, Mr Andrieu said. However, unlike the rapporteur, he is opposed to the long-term maintenance of free rights.
A sentiment shared by the Greens/EFA group in the European Parliament which opposes Zbigniew Kuźmiuk’s suggestions on maintaining free allowances alongside the new mechanism.
The Commission mentioned the idea of a “transition without abrupt disappearance” of the free allowance system.
MEPs in the Committee on Agriculture have until 16 November to table their amendments on this opinion, ahead of a vote on 10 January 2022.
Link to the draft opinion: https://bit.ly/3kkvtx4 (Lionel Changeur)