EU carbon tax drives up fertilizer costs for farmers

The EU's Carbon Border Adjustment Mechanism (CBAM) is increasing fertilizer prices, threatening to significantly impact farmers' budgets. The CBAM, fully implemented since January 1, 2026, imposes a carbon price on imported goods, directly affecting energy-intensive fertilizer production. This has led to an 80% drop in nitrogen fertilizer imports to the EU in January. Farmers argue this policy unfairly burdens them with higher costs while facing competition from countries with less stringent environmental regulations, potentially jeopardizing food security and farm viability.