00:01The European Commission is preparing to use carbon taxes collected from industry to subsidize
00:07farmers struggling with rising fertilizer costs, according to a leaked draft document seen by
00:12Euronews. European fertilizer production came under pressure following Russia's invasion of
00:18Ukraine and ongoing disruption in the Middle East, both of which have driven up costs for
00:22farmers and increased inflationary pressure on consumers. Brussels plans to address the
00:29problem by recycling revenues from the bloc's carbon market, the emissions trading system,
00:33back into agriculture. The plan aims to curb rising prices linked to the closure of the Strait of
00:39Hormuz, through which around 30 percent of the global fertilizer trade passes. The proposal
00:45reflects Brussels' recognition of farmers' difficulties as well as the strategic importance
00:50of food security. It could, however, also provoke backlash from energy-intensive industries,
00:56which are required to pay for the carbon emissions linked to their production.
01:01Agriculture has so far been exempt from the emissions trading system and now appears set
01:05to benefit from its revenues. In addition, a group of environmental NGOs have urged EU leaders
01:11to use the upcoming fertilizer strategy to signal the end of fossil fuel dependency in Europe's food system.
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