Warning that EU Parliament might scrap key CBAM safeguard
An Irish MEP has warned that the European Parliament may move to scrap a proposed key safeguard for farmers under the Carbon Border Adjustment Mechanism (CBAM).
Fine Gael MEP Seán Kelly said that if this safeguard is taken off the table, farmers "could ultimately be left paying the price".
The CBAM, which came into force in January, is essentially a tax on imports of carbon-intensive products into the EU, including fertiliser.
The measure requires importers of fertiliser to pay for certificates to import products.
The European Commission has proposed an amendment to CBAM that would allow products to be temporarily removed from its scope in exceptional circumstances that could harm EU markets and push prices too high.
However, Kelly said that the Socialists and Democrats group in the European Parliament has proposed rejecting that commission amendment.
This is a ahead of key vote on CBAM next week.
Speaking in the European Parliament yesterday (Wednesday, September 10), Kelly said: "It is ridiculous that we would remove our own ability to take action in the event that CBAM results in extraordinary and unforeseen price increases for farmers, businesses or consumers."
He added: "CBAM has an important role in tackling carbon leakage and protecting European industry by putting a border carbon tax on imports, but we have to be pragmatic.
"If these measures end up causing serious market disruptions that harm our farmers and citizens, then the commission must have the tools to respond."
Kelly noted that the EU remains heavily dependent on fertiliser imports, with around 30% of EU nitrogen fertiliser demand being met by imports.
"The European fertiliser industry is not big enough to supply the European market. While it is important to put measures in place to support its growth and development and ensure we are self-sufficient in the future, it won’t happen overnight," the Ireland South MEP commented.
"Removing the safeguard to protect against extreme market conditions in the interim is completely non-sensical."
"Farmers are already under enormous cost pressure and higher input costs can’t just be passed onto consumers via supermarket shelves," he said.
Kelly added: "We should be protecting our farmers’ ability to access affordable fertilisers, instead of what many MEPs seem to want to do: removing the very safeguard designed to deal with an exceptional price crisis."
Kelly is calling on his fellow MEPs to reject the proposed scrapping of the commission safeguard amendment.
