The Council of the European Union and the European Parliament have continued working on the tools to add flexibility to the Carbon Border Adjustment Mechanism (CBAM) regulation under particular circumstances, especially when market conditions require an extra intervention from a government agency. Reminder: on 7 January 2026, the European Commission and the EU ministers discussed a possibility of lowering prices for fertilizers and, therefore, easing the pressure on the European farmers. Thus, the officials of France and Italy called for the exemption of fertilizers from the bloc’s carbon border tax, which came into force on 1 January 2026.
Now, the Council of the European Union and the European Parliament are discussing a provision allowing a temporary suspension of CBAM in cases it is needed to stabilise the market. According to WFM’s sources, the bill is unlikely to become law and come into force until the end of 2026.
WFM will follow the matter up.
World Fertilizer
Market Media