The European Commission is considering granting more free carbon emission permits to fertilizer companies that expand local production of low-carbon inputs. This information is contained in a document obtained by Reuters on Monday (18). According to the agency, the plan should be officially released on Tuesday (19) and is part of the European Union's efforts to support the fertilizer industry and reduce the impact of rising energy costs on farmers in the bloc, amid tensions in the Middle East and the closure of the Strait of Hormuz. Among the measures under study is the expansion of the free granting of CO2 emission permits for companies in the sector, reducing costs related to the European carbon market. According to the draft, the additional permits would be conditional on increased production of "bio-based, circular or low-carbon" fertilizers, focusing on expanding the availability of inputs produced within Europe. The proposal should be part of the future review of the European carbon market, which the European Commission intends to present in July. The document also foresees other measures to support the European agricultural sector. Among them is the possibility of granting additional subsidies to farmers most affected by the soaring costs of fertilizers.
This text was translated by machine from Brazilian Portuguese.