Commissioner Hansen, in a written answer on 22 July 2026, detailed a series of EU actions to mitigate the impact of the Middle East conflict on the agri-food sector, focusing on fertiliser costs, energy affordability, and potential carbon pricing effects. The response, addressed to MEP Dimitris Tsiodras (PPE), aims to reassure farmers and consumers facing rising production costs and food price pressures.
The Commissioner highlighted existing measures, including a temporary suspension of duties on key nitrogen fertilisers within quotas (excluding Russia and Belarus) and a reduction of the Carbon Border Adjustment Mechanism (CBAM) default value markup to 1%. To address energy costs, he pointed to the AccelerateEU communication, which catalogues national best practices for supporting vulnerable consumers and SMEs, and the Middle East Crisis Temporary State aid Framework (METSAF), allowing targeted state aid for sectors including agriculture.
Hansen also outlined the forthcoming Fertiliser Action Plan, which includes short-term measures such as possible support from the agricultural reserve and a legislative package under the Common Agricultural Policy (CAP) Strategic Plans, expected to be adopted by co-legislators in July 2026. The plan aims to improve fertiliser affordability, boost EU production capacity, support decarbonisation, diversify supply, and enhance market transparency. The Commission will assess how CBAM and Emissions Trading System (ETS) costs are reflected in fertiliser and food prices.
The answer provides concrete proposals—duty suspensions, state aid frameworks, and a legislative package—but leaves key details on the CAP package and CBAM-ETS impact assessment to future steps. The policy direction is towards short-term relief for farmers and consumers, coupled with long-term resilience through domestic production and decarbonisation. Institutional follow-up includes the July 2026 adoption of the CAP legislative package and ongoing monitoring of carbon pricing effects.