Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the impact of the UK Carbon Border Adjustment Mechanism on fertiliser costs for farmers from 1 January 2027 and what plans she has to delay or repeal its implementation as it applies to fertilisers.

The Government remains committed to implementing the UK Carbon Border Adjustment Mechanism (CBAM) from 1 January 2027. CBAM will apply to imported goods from the fertiliser sector, and the rate charged will reflect the final carbon price paid by domestic industries after support mechanisms (such as free allowances within the UK ETS) have been taken into account.

Therefore, it is expected that initial liabilities arising from the CBAM will be modest, and the Government does not expect CBAM to put UK farmers at a significant competitive disadvantage.

CBAM, like all taxes, will be kept under review by the Chancellor.