Fertilizers Europe (FE) welcomes the vote by the European Parliament’s ENVI Committee on July 6, as it strengthens the Carbon Border Adjustment Mechanism (CBAM) and improves regulatory predictability for affected sectors, including the fertilizer industry. A key aspect is ENVI’s support for removing Article 27a, which would have allowed for the accelerated withdrawal of goods from the CBAM, bypassing ordinary legislative procedures. According to FE, this possibility would have undermined the mechanism's effectiveness, increased the risk of carbon leakage, and reduced investor confidence within the European industry.

For the fertilizer sector, the key message is that fertilizers must remain within the scope of the CBAM so that imports bear carbon costs comparable to those faced by European producers. FE maintains that this is necessary to ensure a level playing field, support industrial decarbonization, and prevent the relocation of production, jobs, and emissions outside the EU. However, the organization acknowledges that the CBAM could place pressure on downstream sectors, particularly European farmers. Therefore, it advocates for redirecting CBAM revenues to the affected sectors—including farmers—rather than excluding fertilizers from the mechanism.

ENVI’s position aligns with those adopted by the INTA (Committee on International Trade) and ITRE (Committee on Industry, Research and Energy) committees. FE now calls on the European Parliament and the Council to ensure that the removal of Article 27a is maintained in the final revision of the CBAM.



Link to the FE press release: https://www.fertilizerseurope.com/wp-content/uploads/2026/07/Fertilizers-Europe_Press-Release_CBAM_ENVI_July-2026_final.pdf