• Carbon Border Tax will add to the cost of production and food price inflation

• A Full Economic Assessment into ‘unworkable’ CBAM Tax needed urgently

The Irish Co-operative Organisation Society (ICOS) has called for the immediate postponement of CBAM obligations for fertiliser in 2026 due to the complex and unworkable nature of the regulation. The umbrella body for the Irish co-operative movement is also calling on the Irish Government to carry out a full economic and environmental assessment into CBAM as a matter of urgency.

The ICOS Dairy Committee Chair, Eamonn McEnteggart said today:

“ICOS is calling for the immediate postponement of CBAM obligations for fertiliser in 2026 due to the complex and unworkable nature of the regulation. The cost of food production remains at elevated levels due to global economic and geopolitical events, resulting in higher food prices for consumers. The inclusion of fertiliser under CBAM effectively translates into a tax on food production, that if implemented will add to the cost of production at dairy farm level by over a cent per litre.”

“The Irish Government and the European Commission need to wake up to the consequences of this unworkable regulation. Every cent per litre is hard got in the marketplace, and it’s a huge own goal to let this happen without a full understanding of the consequences. Our key strength is our grass-based production, and we need to access reasonable amounts of fertiliser at competitive prices. Before the introduction of CBAM, it is essential that the full economic and environmental implications are assessed to prevent unintended consequences from a food security, economic and environmental perspective.”

“It is incredible to think that with less than 3 months to go before its introduction, the entire sector from importers, co-ops and farmers are in a complete vacuum of information concerning the key factors needed to calculate the cost of CBAM certificates. This is causing massive business uncertainty and risk. It is totally unacceptable and threatens to cause huge disruption and difficulties for the sourcing and pricing of fertiliser at wholesale and retail level.”

“Due to our greater reliance on imported fertiliser, CBAM will have a disproportionate effect on protected urea compared to other sources of nitrogen, which is completely contrary to our climate policy objectives. As a sector, we are greatly concerned that the availability of protected urea will be severely constrained from next year due to the enormous uncertainty caused by CBAM.”