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EnvironmentEU proposes allowing member states to use carbon market revenue to support greener fertilisers
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The European Commission has proposed allowing member states to use revenues from the Emissions Trading System (ETS) to support farmers in adopting greener fertilisers. This initiative aims to reduce agricultural emissions by incentivizing the use of low-carbon fertilizers, funded by carbon market proceeds. The proposal is part of broader EU efforts to align agricultural practices with climate goals, potentially easing financial burdens on farmers while promoting environmental sustainability. The move could also help the EU meet its net-zero emissions targets by 2050, though details on implementation and oversight remain to be finalized.
Source report
The European Commission has signaled a potential shift in policy by exploring the use of carbon market revenues to provide financial support to farmers, according to a report from Euractiv.
The proposal, which remains under discussion, would allow funds generated from the EU's Emissions Trading System (ETS) to be redirected toward agricultural subsidies or climate adaptation measures for the farming sector. This marks a notable departure from current practices, where carbon market proceeds are primarily allocated to industrial decarbonization and energy transition projects.
Key points from the report include:
- The initiative aims to address growing concerns over the financial burden of climate regulations on farmers.
- Revenue from carbon allowances could be channeled into direct payments or green investment incentives for agriculture.
- The move is seen as a response to recent protests by farmers across Europe, who have demanded greater support amid rising costs and environmental mandates.
The European Commission has not yet finalized the details, but the proposal is expected to be part of broader discussions on the future of the Common Agricultural Policy (CAP) and the EU's climate goals.
Image credit: GettyImages-1208936542
Source
EuractivWestern
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Brussels Opens Door to Using Carbon Market Revenue to Support Farmers