Welsh Conservative Shadow Farming Minister Andrew RT Davies has warned a proposed carbon tax on imported fertiliser would cause “huge damage” to the Welsh agricultural industry.
The levy will be introduced under the UK’s Carbon Border Adjustment Mechanism (Cbam) from 1st January 2027.
Farmers have warned it would place the industry under huge pressure, following recent sharp rises in the price of fertiliser.
Natural gas accounts for up to 80% of nitrogen fertiliser production costs.
Its price has soared following conflict in the Middle East.
To ease pressures on farmers, Mr Davies called on the Government to scrap the tax.
Mr Davies said:
“Welsh farmers are already facing increased costs following a rise in the price of fertiliser.
“These external factors, linked to conflict in the Middle East, have put the industry under huge pressure.
“This tax will add to those pressures – the Government must listen to farmers and scrap it.”
ENDS
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