The Impact of the Eu Emissions Trading System (eu Ets) on Agriculture: Challenges and Opportunities
2025
Gantner, Vesna | Krstić, Boro | Gantner, Ranko | Potočnik, Klemen | Kuterovac, Krešimir
The aim of this review was to analyse the European Union Emissions Trading System (EU ETS) and its indirect effects on agriculture. While the EU ETS tar gets major industries like energy and manufacturing, agriculture is not directly regulated, yet the sector is impacted by rising energy, fuel, and fertilizer costs due to carbon pricing. The increased financial burden may strain farmers, par ticularly small-scale producers, who may struggle with higher production costs. Additionally, the introduction of the Carbon Border Adjustment Mechanism (CBAM) could intensify global competition for EU farmers, especially those producing carbon-intensive products. Although sustainable practices like car bon sequestration offer potential benefits, many farmers may lack the resources or technology to implement them. The review highlights the need for targeted support to help farmers transition to low-carbon practices without compromis ing their economic viability, ensuring that EU agriculture can remain competi tive while contributing to the EU’s climate goals.
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Editeur Institute of Agricultural Economics, Belgrade (Serbia)
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