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The European Commission plans to present rules of the carbon border adjustment mechanism in June 2021 as part of a package aimed at reducing emissions in the EU by 55% by 2030. Pesticides imported from third countries could become the first product for which the new mechanism will be applied. To facilitate the tracing of the carbon footprint, digital product passports would be introduced, and the information contained in these passports could be extended to items other than carbon over the years. British Prime Minister Boris Johnson said last week that the United Kingdom is not going to take similar steps, carbon taxes will not be introduced yet.
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The European Commission has set aside half of its funding for 2021 agri-food production promotion programs to support organic production and to meet Farm to Fork objectives. This amounts to a total of €86 million, of which €49 million is for the organic sector, €19 million for the promotion of fruit and vegetables, and €18 million for the promotion of sustainable production. COMAGRI Members objected to the decision, stressing that organic farming represents less than 10% of the value of total agricultural production. According to them, the allocation of almost half of the total funds will also support the import of many "organic" products from third countries.

The German Federal Ministry of Agriculture (BMEL) has officially presented a study on how to raise funds to enhance animal welfare. According to the study, one of the ways to obtain funding is to introduce taxes on meat. On 02/03/2021, the Minister of Agriculture, Julia Klöckner (CDU), submitted a report to the German Parliament's Committee on Agriculture identifying three possible legislative ways of adjusting the tax system: an increase in excise duty on certain products of animal origin, an increase in VAT on these products, and the introduction of an additional income tax. The preferred model is a proposal to increase VAT from 7% to 19%, which would also be in line with European legislation. All three options will continue to be discussed in the coming months, inter alia in the context of the forthcoming Chamber of Deputies elections in September 2021. The issue of introducing meat taxes in Germany arose as early as 2020; last year the proposals took the form of supplementing a flat tax on certain products of animal origin of 40 cents per kilogram of meat, 2 cents per kilogram of milk and 15 cents per kilogram of cheese or butter. The aim was also to raise funds to strengthen animal welfare. British Prime Minister Boris Johnson said last week that the United Kingdom was not yet considering introducing taxes on meat.
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Spanish producers of traditional foods and foods with a protected geographical indication are requesting exemptions from the nutrition labelling system on the front of food packaging using the NutriScore system. The February decision of the ministry to grant an exemption to olive oil producers led to the submission of further applications, this time for Manchego cheese and traditional Spanish ham. However, other traditional food producers also plan to submit applications. Spain seeks to encourage food producers to voluntarily label foods with NutriScore, pending the transition to a possible mandatory harmonized nutrition labelling scheme, which is now under scientific review by the European Food Safety Authority (EFSA), and which is being discussed by European institutions. The Commission should present a legislative proposal for nutrition labelling on the front of food packaging by the end of 2022 as part of the Farm to Fork strategy.
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Last week, Austrian MEP Simone Schmiedtbauer (EPP) called for support for food country origin labelling, which Schmiedtbauer said is key to reducing the carbon footprint. According to the MEP, support for this labelling would lead to a shortening of supply chains and to the promotion of local consumption. According to Schmiedtbauer, it is also important to monitor the origin of ingredients in already processed foods, especially meat, milk, and eggs. Schmiedtbauer calls on the Commission to present a legislative proposal on mandatory EU-wide food labelling as an essential part of the European Green Deal and the Farm to Fork strategy.
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