The European Commission is planning to redirect funds from the Emissions Trading System (ETS) to help farmers transition to bio-based and low-carbon fertilizers. This move aims to protect food security and reduce reliance on natural gas based fertilizer production, which has become volatile due to geopolitical tensions. The proposal includes assessing the impact of the Carbon Border Adjustment Mechanism (CBAM) on farm costs and exploring green ammonia corridors with partners in Africa and the Middle East to diversify supply chains.
