Relevant Matter
Public policy or programme
Public Policy Area
EU Affairs
Period
1 May, 2025 to 31 Aug, 2025
Specific Details
Carbon Border Adjustment Mechanism (CBAM)
Intended results
To highlight in relation to the proposed implementation of the Carbon Border Adjustment Mechanism (CBAM) on imports of Nitrogen Fertiliser from outside of the EU from January 1st 2026 and the associated cost impact for farmers. While we appreciate that CBAM was included in the first omnibus simplification package, this simplification failed to have any tangible impact for farmers who will bear the cost of potential increases in price.
To highlight that Nitrogen fertiliser plays a pivotal role in the Irish farming sectors, allowing us to maximise our unique European climatic conditions by maximising the yields of both grass and cereals. This, in turn, supports food production within Ireland and is a key driver of the economic performance of Irish agriculture. A significant reduction in the use of nitrogen fertiliser by Irish farmers will have substantial knock-on consequences from a food security and economic perspective.
That the implementation of CBAM on international nitrogen imports coincides with the imposition of new tariffs on Russian and Belorussian Fertiliser imports which will start on July 1st 2025 at €40 per tonne, rising to €315 per tonne by 2028.
While IFA fully recognises the necessity to implement sanctions on Russia in the context of the ongoing war in Ukraine, imports of fertiliser from Russia into the EU had been rising during the period of January to April 2025; therefore the deficit that will be created in the market from the future absence of Russian and Belorussian fertiliser in the EU marketplace will most likely be filled from non-EU sources.
To stress that the price of these non-EU imports will now be made significantly more expensive if CBAM is implemented as proposed. Ireland's fertiliser market is also particularly exposed to the impact of CBAM on fertiliser prices due to our reliance on imported urea from outside of the EU.
That a significant increase in the cost price of urea will make the price of Protected Urea uncompetitive in comparison to Calcium Ammonium Nitrogen (CAN) fertiliser, which is mainly manufactured in the EU. This in turn could well lead to farmers to switch back to CAN fertiliser from Protected Urea. This is completely contrary to a key objective of the Climate Action plan; the 80%-90% replacement of CAN fertiliser with Protected Urea.
That the proposed introduction of CBAM on nitrogen fertiliser is yet another example of poorly thought-out regulation by the European Commission and our own Government. It will have a direct negative impact on the cost of doing business for farmers and directly contravenes commitments from this Government to do the opposite. It also has the capacity to make the challenge of reducing emissions more difficult for farmers, something which farmers will struggle to comprehend.
To highlight that, in recognition of these combined effects on the price of fertiliser and the essential need to keep input prices competitive for Irish farmers, I am requesting you to raise the issue of CBAM at the upcoming meeting of the EU Agri – Fish Council on the 23rd of June and to request that nitrogen fertiliser is excluded from CBAM in the upcoming Agricultural Simplification Package which will be proposed by the European Commission in Q4 of 2025.
That there are multiple aspects of CBAM which could be amended to ensure the policy does not disproportionately impact on farmers. Another potential solution would be to recommend for the European Commission to develop CBAM-exclusive agreements with current fertiliser trading partners who are already supplying fertiliser to the EU market.
To stress that any anti-dumping tariffs on other fertiliser products such as UAN should be removed to make the market more competitive. A further complication is the recent decision by the UK government to delay implementation until January 1st 2027, which has the potential to create a fertiliser price gap between the Republic of Ireland and Northern Ireland if CBAM is implemented in the EU on January 1st 2026.
To request the Minister for Agriculture, Food & the Marine to raise this issue as a matter of urgency with the EU agriculture ministers at the upcoming Agri - Fish Council as in periods of such unpredictable geopolitical tension there are major impacts on prices for agricultural inputs.
To stress to Irish MEPs that Ireland's fertiliser market is particularly exposed to the impact of CBAM on fertiliser prices due to our reliance on imported urea from outside of the EU. A significant increase in the cost price of urea will make the price of Protected Urea uncompetitive in comparison to Calcium Ammonium Nitrogen (CAN) fertiliser, which is mainly manufactured in the EU.
This in turn could well lead to farmers switching back to CAN fertiliser from Protected Urea. This is completely contrary to climate policy.
Name of person primarily responsible for lobbying on this activity
Francie Gorman IFA President, Damian McDonald IFA Director General, Tadhg Buckley IFA Director of Policy & Chief Economist, Liam MacHale IFA Director of European Affairs, Noel Banville IFA European Policy Executive
Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?)
No
Did you manage or direct a grassroots campaign?
No
Was this lobbying done on behalf of a client?
No
Lobbying activity
The following activities occurred for this specific Subject Matter Area.
Designated public officials lobbied
The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them.
As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.
Aodhán Ó Ríordáin
MEP (European Parliament)
Barry Andrews
MEP (European Parliament)
Barry Cowen
MEP (European Parliament)
Billy Kelleher
MEP (European Parliament)
Ciaran Mullooly
MEP (European Parliament)
Cynthia Ní Mhurchú
MEP (European Parliament)
Kathleen Funchion
MEP (European Parliament)
Luke Ming Flanagan
MEP (European Parliament)
Lynn Boylan
MEP (European Parliament)
Maria Walsh
MEP (European Parliament)
Martin Heydon
Minister (Department of Agriculture, Food and the Marine)
Michael McNamara
MEP (European Parliament)
Nina Carberry
MEP (European Parliament)
Regina Doherty
MEP (European Parliament)
Sean Kelly
MEP (European Parliament)