Impacts of carbon adjustment on agricultural inputs Impacts of carbon adjustment on agricultural inputs Impactos do ajuste de carbono sobre insumos agrícolas Translation: Impacts of carbon adjustment on agricultural inputs

The future taxation of carbon emissions embedded in products imported by the European Union is expected to alter the cost dynamics in the fertilizer market. The Carbon Border Adjustment Mechanism, set to begin in 2026, will target items such as nitrogen fertilizers, a strategic input for the bloc's agriculture. The analysis released by StoneX points out that the measure tends to increase expenses for European farmers, who are already dealing with a scenario of more expensive domestic production. The study highlights that the industry on the continent bears increasing costs to meet emission reduction targets, which has stimulated the search for external products with milder rules. "European industries have borne increasing costs to meet emission reduction targets, and this increase in production costs often encourages buyers to seek foreign products, which are not subject to the same European regulations. The CBAM arises precisely to equalize the competitiveness between domestic ...