175. Deputy William Aird asked the Minister for Agriculture, Food and the Marine the engagement undertaken at EU level regarding the carbon border adjustment mechanism (CBAM) and its potential impact on Irish agri-food exports; the assessment his Department has made of the implications of CBAM for the competitiveness of Irish agriculture and food processing sectors; and if he will make a statement on the matter. [52203/26]

There are no fertilisers manufactured in Ireland, rather fertiliser companies blend a number of imported fertiliser products suitable for agricultural use in Ireland. Accordingly, the imposition of the CBAM levy, combined with the phase-out of the ETS free allowances, will inevitably lead to a rise in fertiliser prices in Ireland, regardless of origin (EU or non-EU). Given that fertiliser is a significant input cost in many production systems, CBAM will also have knock-on impacts on the cost of food production.

Negotiations in respect of CBAM are led by the Department of Finance. The relevant Council has come to an agreement on the inclusion of a new Article 27a in the draft amending Regulation, providing a means of removing a commodity from the requirements of the CBAM in the event that the imposition of the levy is having serious and unforeseen consequences on price. Trilogues will now take place with the European Parliament and Commission on this draft Regulation, led on behalf of the Council by the Department of Finance during Ireland's Presidency term.

My Department will continue to engage with relevant Departments and with stakeholders on the implications of CBAM.