The European Commission is continuously making efforts to reduce carbon footprint around the world.
As Europe grapples with rising fertilizer costs due to the US-Iran war, a draft proposal has revealed the EU Commission is considering giving fertilizer companies more free CO2 emissions permits if they increase local, low-carbon production.
A surge in gas and fertilizer prices has disrupted businesses around the world after the key shipping route, the Strait of Hormuz, was effectively closed.
A draft of the EU’s fertilizer plan is due to be published on Tuesday and outlines how Brussels will try to support the sector and relieve farmers from rising costs.
According to the draft EU plan, among the options the Commission is considering would be to give the fertilizer industry more free CO2 emissions permits to reduce companies’ bills for complying with the EU carbon market.
The draft states that additional CO2 permits “will be conditional on increased production of bio-based (organic), circular, or low-carbon fertilizers to ensure the availability of domestic fertilizers in Europe.”
The plan will be part of an upcoming overhaul of the EU carbon market, which the Commission plans to propose in July.
Other parts of the fertilizer plan that have yet to be finalized include potentially giving additional subsidies to the most affected farmers to cope with higher fertilizer costs.
