Dáil Éireann Debate, Tuesday - 16 December 2025
795. Deputy Ryan O'Meara asked the Minister for Agriculture, Food and the Marine his position on the carbon border adjustment mechanism, which is planned to come into effect at the start of 2026, given the impact it will have on fertiliser costs for Irish farmers; if it’s implementation will be going ahead as planned in Ireland; and if he will make a statement on the matter. [71933/25]
View answerThe Carbon Border Adjustment Mechanism (CBAM) is the EU's initiative to put a fair price on carbon emitted during the production of carbon-intensive goods, including fertiliser, that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
CBAM will move to implementation from the start of 2026, with full implementation expected by 2034. The gradual introduction of the CBAM is aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.
There are no fertilisers manufactured in Ireland, rather fertiliser companies blend a number of imported fertiliser products suitable for agricultural use in Ireland. The imposition of the CBAM levy, combined with the phase-out of the ETS free allowances, will inevitably lead to a rise in fertiliser prices in Ireland, regardless of origin (EU or non-EU).
I raised the issue of CBAM and its likely effect on fertiliser prices at the October and November Agri-Fish Council, where I emphasised the need for clarity on the calculation of the cost of CBAM certificates. I also raised concerns of the impact of CBAM on European agricultural competitiveness and the risks of trade distortion.
The Environmental Protection Agency is the Competent Authority on CBAM and the Office of the Revenue Commissioners are responsible for collection of the levy and also for issues relating to the EU Customs Union which includes Northern Ireland. My Department has been actively engaging with fertiliser stakeholders on CBAM and have facilitated meetings between industry, the EPA and Revenue to assist in preparations for the introduction of CBAM.
My Department will continue to work to provide as much information as possible to both the Irish fertiliser industry and fertiliser users as CBAM rolls out from 1 January 2026.
