Alongside the CBAM tightening, MEPs backed a temporary decarbonisation fund (TDF) running 2027–2029, aimed at protecting European producers — particularly in fertilisers — from carbon costs while they decarbonise.
Eligible inputs include urea, ammonium nitrate and ammonium sulphate, and all downstream operators using CBAM-covered goods as inputs would qualify for support. Leftover revenue could go toward the EU's international climate finance commitments instead of being returned to member states — tying CBAM's enforcement side directly to the EU's broader climate finance obligations.
Rapporteur Pascal Canfin framed it explicitly as a competitiveness tool: protection for EU exporters facing rivals who don't pay a carbon price, alongside stronger anti-circumvention rules aimed at resource shuffling from China (European Parliament).