Draft shows EU wants to give more carbon credits for fertilisers
A draft proposal revealed that the European Commission was considering giving more free CO2 emission?permits if fertiliser companies ramped up "local, low carbon production". This is because Europe is grappling with soaring fertiliser prices triggered by war in Iran.
Businesses around the world have been affected by the increase in prices of gas and fertilisers following the closure of the Strait of Hormuz. This is a major shipping route.
The draft EU fertiliser policy, which was seen by and is due to be released on Tuesday, outlines 'how Brussels will try to support this sector and cushion farmers against soaring costs.
Un spokesperson for the Commission declined to comment on "the draft".
According to an EU plan draft, the Commission will explore a number of options including giving the fertiliser industry free CO2 emission permits in order to reduce the companies' costs for conforming to the EU carbon market.
The draft stated that the additional CO2 permits were "conditional" on "an increased production of bio-based (organic), low-carbon or circular fertilisers, securing availability?of homegrown fertilisers in Europe".
The Commission is planning to propose a major overhaul of the EU carbon market in July.
The fertiliser plan is still being drafted, and it could change before publication. Other parts include giving additional subsidies to the hardest-hit farmer in order to help them cope with the higher costs of fertiliser. (Reporting and editing by Hugh Lawson; Reporting by Kate Abnett)
(source: Reuters)
