MEPs have warned that a new EU tax on fertiliser imports could "hit Irish farmers hard" as they urge the European Commission to "rethink" its rollout.

Fianna Fáil MEPs Barry Cowen, Billy Kelleher and Cynthia Ní Mhurchú have written to European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra, about the EU’s timeline for implementing the Carbon Border Adjustment Mechanism (CBAM) on fertilisers.

They have requested an urgent meeting to "explore solutions".

The letter explains that Ireland depends heavily on imported fertiliser, especially urea, leaving farmers "more exposed than others to new carbon tariffs".

Price hikes

Irish farmers could face sharp price hikes, the MEPs warned.

From January 1, 2026, CBAM will require importers to buy certificates based on the EU carbon price.

The Irish Co-operative Organisation Society (ICOS) has said that at current market rates of €70/t carbon dioxide equivalent, this will add €35-80/t to the cost of fertilisers like urea and calcium ammonium nitrate (CAN).

ICOS highlighted that projections show these costs could rise to as much as €250/t by 2034.

ICOS warned that for Irish farmers, this could equate to a staggering €100 million increase in fertiliser costs by 2030.

The letter also flags potential problems from the UK’s delayed CBAM timeline.

The UK will not apply similar charges until 2027.

'Collateral damage'

MEP Barry Cowen commented: “Ireland’s farmers must not become collateral damage of well-intended climate policy.

"As a country, we import virtually all our fertiliser – about 80% of our urea comes from outside the EU.

"I have grave concerns that our farmers will bear the brunt of a policy that was never tailored to our national circumstances, and that is why I’ve urgently reached out to Commissioner Hoekstra on this matter."

Cowen said a "cross-border fiasco" must also be avoided.

"We need the EU and UK in sync on CBAM timing to prevent a loophole that could hurt both our single market and Ireland’s agri sector," Cowen added.

“I’m urging the commission to hit the pause button on CBAM for fertilisers until these issues are resolved.

"This is about being smart as well as green – my Fianna Fáil MEP colleagues and I absolutely support climate action, but it has to be done in a fair and workable way.

"I welcome the constructive engagement from Commissioner Hoekstra so far and look forward to sitting down with him as soon as possible."