The European Commission has decided to keep the Carbon Border Adjustment Mechanism (CBAM) in place for fertiliser imports, rejecting calls to scrap the tax despite rising costs for farmers. The move aims to protect EU producers from unfair competition from countries with weaker environmental standards. To offset the financial pressure on the agricultural sector, the EU is considering increased subsidies and strategic investments. The Commission plans to investigate how carbon pricing costs are passed from factories to consumers to better target financial support.
