France fertilizer carbon tax exemption has become a key policy issue as the French government seeks relief for fertilizers under the European Union’s Carbon Border Adjustment Mechanism (CBAM). France has raised concerns that applying the EU carbon border tax on fertilizers could increase costs for farmers and weaken the competitiveness of domestic producers.
According to industry and policy sources, France has urged the European Commission to consider excluding or providing special treatment for fertilizers under the carbon border levy. The country argues that fertilizers play a critical role in agriculture and higher costs could directly raise food prices and reduce farm incomes.
The France fertilizer carbon tax exemption demand comes as the EU prepares to fully implement CBAM, which aims to prevent carbon leakage by taxing imports based on their carbon footprint. Fertilizer products, especially nitrogen-based ones, are among the most energy-intensive industrial goods.
France has reportedly highlighted the risk of supply disruptions and import dependence if domestic fertilizer producers face higher compliance costs. The government has also stressed the need to balance climate goals with food security and farmer welfare.
EU policymakers are expected to review sector-specific concerns as CBAM moves closer to full enforcement. Any exemption or adjustment for fertilizers would have broader implications for the European fertilizer market.
