How to Adapt to the European Carbon Adjustment Mechanism

During his speech at the sixth tomato conference in Agadir, Ali Rougui, head of market analysis at the Morocco Foodex agency, proposed a strategic plan for the entire fruit and vegetable sector to prepare for the potential application of the European “Carbon Border Adjustment Mechanism” (CBAM) to agricultural products starting in 2035. Recently implemented in Europe for fossil and industrial materials, including fertilizers, this is a climate policy tool established by the EU under Regulation 2023/956. This mechanism requires importers of targeted products to declare their carbon footprint and pay a tax on their emissions (currently €75 per ton). “Other countries are already following the European Union’s lead, such as the United Kingdom, the United States, and the United Arab Emirates,” warns Rougui. Morocco is already subject to this tax on several industrial products, such as phosphate fertilizers, of which it is the world’s leading producer.

“Sector-based” approach recommended to mitigate risk

The rise of climate policies applied to imported goods represents a growing regulatory risk. It can also pose a competitiveness risk (compliance costs, commercial risk, supplier requirements) relative to competitors if companies do not prepare for it. It can also generate reputational risks such as environmental footprint or water usage. “In light of this situation, there must be a collective sector-wide approach—rather than a country-by-country one—to find effective, low-cost solutions for measuring, standardizing, and reporting,” states Roughui.

4 Priorities for Fruit and Vegetable Exporters

According to Roughui, the four priorities for fruit and vegetable companies exporting to Europe should be to measure in order to manage, reduce emissions, ensure compliance, and strengthen sustainable performance. To “measure to manage” effectively, companies must conduct a carbon assessment by identifying emissions from production, energy consumption, refrigeration, transportation, packaging, and the purchase of agricultural inputs.

For more information on potential carbon strategies for the sector, click here.