Background
EuroChem is one of Europe and the worldโs largest synthetic fertilizer companies.1โFERTILIZERS MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 – 2027),โ Mordon Intelligence. Archived August 1, 2022. Archive URL: https://archive.ph/DUYxn 2โMineral Fertilizers Market Size and Emerging Trends 2022-2028 | Growing Acceptance of Advanced Chemical Fertilizers & Government Subsidies to Encourage Market Growth, Predicts The Brainy Insights,โ Global Newswire, March 1, 2022. Archived August 1, 2022. Archive URL: https://archive.ph/n6N6f
According to reporting by Reuters, EuroChem produces roughly 5 percent of the global fertilizer supply.3David Gauthier-Villars and Gabriela Baczynska, โEXCLUSIVE How a Russian billionaire shielded assets from European sanctions,โ Reuters, June 1, 2022. Archived August 1, 2022. Archive URL: https://archive.ph/1LfZ2
According to EuroChemโs 2021 annual report, the company sells โnearly 20 million tonnes of fertilizers a yearโ and generates annual revenues of โsome US$10 billionโ while employing โover 27,000 people worldwide.โ According to the report, EuroChemโs revenues in 2021 increased by 66 percent over 2020, and fertilizer sales volumes increased by 7 percent. The company also stated that it aims to become the third largest fertilizer corporation in the world in both production and sales by 2026.4โ20 years of growth – 2021 Integrated Report,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/efSEV
According to its 2021 annual report, EuroChem had a turnover of US$10.2 billion in 2021. The company reported sales by volume of: 34 percent nitrogen products, 14 percent complex fertilizers, 11 percent phosphates products, 9 percent potash fertilizers, 22 percent mining products, and 10 percent industrial products.5โ20 years of growth – 2021 Integrated Report,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/efSEV
According to EuroChemโs 2020 annual report, Europe accounted for 27 percent of EuroChemโs sales and Latin America for 25 percent of sales. North America and Asia-Pacific each accounted for 16 percent of sales, Russia for 14 percent, and Africa for 2 percent.6โResilience in action – 2020 Annual Reports and Accounts,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/pyUvP
EuroChem was founded in Russia, where the majority of its subsidiaries are based. It is registered in Zug, Switzerland, the capital of the Swiss canton Zug.7โ20 years of growth – 2021 Integrated Report,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/efSEV
In addition to fertilizers, EuroChem is also involved in oil and gas exploration, production, and processing, as well as mining and chemical manufacturing.8โ20 years of growth – 2021 Integrated Report,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/efSEV
Although headquartered in Switzerland, EuroChem was founded by Russian billionaire Andrey Melnichenko, and the majority of its subsidiaries are based in Russia. Its Russian operations include mining, ammonia production, and manufacturing, as well as the production and processing of natural gas.9โResilience in action – 2020 Annual Reports and Accounts,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/pyUvP
Following Russiaโs invasion of Ukraine in February 2022, both Melnichenko โ who had been the non-executive director of the board of directors โ and EuroChemโs former CEO, Vladimir Rashevskiy, were sanctioned by the EU in March 2022. Both then resigned from the company.10Alexander H. Tullo, โChemical industry under pressure to cut ties with Russia,โ Chemical & Engineering News, March 17, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/eCBaC 11โAndrey Melnichenko resigns from EuroChem Board of Directors and withdraws as main beneficiary,โ EuroChem, March 10, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/TA7F1
Following Russiaโs invasion, Swiss authorities initially froze the companyโs bank account and paused its operations, later saying that EuroChem must โtake the necessary measures within the Swiss legal system to allow the company to continue to exist.โ12โSwitzerland unfreezes EuroChem accounts after change of beneficiary – paper,โ Interfax, May 23, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/FxMIP 13โEuroChem in Antwerp can start producing fertilizer again,โ IEDE News, April 13, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/G1EBv 14Brenna Hughes Neghaiwi. โUPDATE 2-EuroChem must show sanctions compliance after those imposed on Melnichenko, Swiss say,โ Reuters, June 10, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/tBxf7
Swiss authorities freed EuroChemโs accounts in May 2022, after ownership of the company was transferred, in trust, to Melnichenkoโs wife Aleksandra Melnichenko โ who later also came under sanctions from the EU.15โEuroChem Group statement on ownership and control,โ EuroChem, June 21, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/qYh2d 16โCOUNCIL IMPLEMENTING REGULATION (EU) 2022/878 of 3 June 2022,โ Official Journal of the European Union, June 3, 2022. Archived August 2, 2022. Archived .pdf on file at DeSmog.
In light of the sanctions, Norwegian fertilizer producer Yara temporarily suspended purchases from EuroChem, and Austrian chemical company and fertilizer manufacturer Borealis announced that it would be refusing EuroChemโs offer to purchase its nitrogen business.17James Burgess and Jeffrey McDonald. โAmmonia, urea producer Yara halts purchases from sanctions-hit Russian suppliers,โ S&P Global Commodity Insights, March 11, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/5ThBq 18โBorealis declines EuroChemโs offer for the acquisition of fertilizer, melamine and technical nitrogen business,โ Borealis Group, March 10, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/EBP2F
In July 2022, EuroChem called on the European Commission to โpro-actively inform EU Member States that all actors in the food and fertilizer sector, EuroChem Group AG included, are free from EU sanctions.โ19โEuroChem calls upon European Commission to take action to protect fertilizer supply chain,โ EuroChem, July 26, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/ouWxb
A significant proportion of global fertilizer operations are based in Russia. According to analysis by Dutch lender Rabobank, Russia accounts for over 40 percent of potash exports, over 20 percent of ammonia exports, and over 45 percent of ammonium nitrate exports โ all either components of or finished fertilizer products.20โThe Russia-Ukraine Warโs Impact on Global Fertilizer Markets,โ Rabo-Research, April 2022. Archived August 2, 2022. Archive URL: https://archive.ph/eWKad
Fertilizer production globally was severely disrupted by Russiaโs invasion of Ukraine and subsequent sanctions. The conflict contributed to already rising fertilizer prices, which have increased nearly 30 percent since the start of 2022, on top of an 80 percent increase in 2021.21John Baffeswee and Chian Koh. โFertilizer prices expected to remain higher for longer,โ May 11, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/Hpkxi
In July 2022, the European Commission proposed paused tariffs on goods used to produce fertilizer until 2024.22โCommission proposes to temporarily scrap tariffs on goods used to produce fertiliser,โ European Commission, July 19, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/7a8Kh
EuroChem has opposed the European Unionโs plans to become carbon neutral by 2050, a key plank of the European Green Deal.23EuroChem. โAdditional comments on the CBAM consultation,โ European Commission, October 28, 2020. Archived August 1, 2022. Archived .pdf on file at DeSmog.
EuroChem has also argued against EU environmental farming legislation, stating: โEuropean farmers are already struggling under excessive burdensome environmental legislations.โ24EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
EuroChem has repeatedly criticized the Farm to Fork Strategy (F2F), the EUโs plans for reducing agricultureโs impacts on the environment and climate. EuroChem has called Farm to Forkโs synthetic fertilizer reduction targets โpointless and counterproductive.โ25EuroChem, โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโ,โ European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
Stance on Climate Change
EuroChem states in its 2021 annual report that climate change โis having a direct and destructive impact on the planet, largely due to the impact of greenhouse gas emissions (GHG) which trap heat and force temperatures up,โ adding that โwe all have an urgent duty to reduce these damaging effects and secure our global future.โ26โ20 years of growth – 2021 Integrated Report,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/efSEV
In the report, EuroChem states that its GHG emissions have increased since 2020 by around 2.5 percent, to 37,500 tons a year. EuroChem claims that it is developing a climate-focused environmental, social, and governance (ESG) strategy to โimplement GHG emissions reduction actions wherever possible.โ
EuroChem also suggests in the report that it plans to significantly increase its fertilizer production in coming years.27โ20 years of growth – 2021 Integrated Report,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/efSEV EuroChemโs products include nitrogen produced from ammonia that is predominantly derived from carbon-intensive fossil fuel feedstock.28โResilience in action – 2020 Annual Reports and Accounts,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/pyUvP
EuroChem nonetheless suggests that its products offer climate solutions, writing that its products will help farmers โunder pressure to produce greater volumes of food from shrinking areas of arable land.โ29โAbout us,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/VAGMY
EuroChem has opposed the European Unionโs plans to become carbon neutral by 2050, a key plank of the European Green Deal. In 2020 comments about the carbon border adjustment mechanism, EuroChem told the European Commission that it โdoubt[ed]โ whether pursuing carbon neutrality was the โright pathโ for the EU, and stated that carbon neutral industrial production represented โan enormous or even impossible technological challengeโ that would result in a โhuge loss of prosperity for European citizens.โ30EuroChem. โAdditional comments on the CBAM consultation,โ European Commission, October 28, 2020. Archived August 1, 2022. Archived .pdf on file at DeSmog.
EuroChem has also argued against EU environmental farming legislation, stating: โEuropean farmers are already struggling under excessive burdensome environmental legislations.โ31EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
EuroChem has repeatedly criticized the Farm to Fork Strategy (F2F), the EUโs plans for reducing agricultureโs impacts on the environment and climate. EuroChem has called Farm to Forkโs synthetic fertilizer reduction targets โpointless and counterproductive.โ32EuroChem. โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโ,โ European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
Impacts of Fertilizers on Climate Change
The global food system accounts for around 30 percent of global human-driven greenhouse gas emissions. Experts consider the sector โa key driver of climate change.โ33Tim G. Benton, Carling Bieg, Helen Harwatt, Roshan Pudasaini and Laura Wellesley, โFood system impacts on biodiversity loss – Three levers for food system transformation in support of nature,โ Chatham House, February 2021. Archived August 2, 2022. Archived .pdf on file at DeSmog.
Synthetic fertilizers are a major contributor to the food sectorโs carbon footprint, because methane (or โnaturalโ) gas is the primary feedstock for synthetic fertilizer production.34โHow Fertilizer Is Making Climate Change Worse,โ GRAIN, November 1,2021 Archived November 25, 2021. Archive URL: https://archive.ph/wip/7sbQ7
Once in use, both organic and synthetic nitrogen fertilizers emit significant quantities of nitrous oxide (NO2), a greenhouse gas that traps 300 times more heat than CO2 and can remain in the atmosphere for decades.35Daisy Dunne.โNitrogen fertilizer use could โthreaten global climate goalsโ,โ Carbon Brief, September 7, 2020. Archived November 25, 2021. Archive URL: https://archive.fo/L9DNY 36โTackling climate change,โ European Commission, Archived December 3, 2021. Archive URL: https://archive.ph/vKMzc
Over the past four decades, rising use of nitrogen-based fertilizers has driven up global emissions of NO2.37Daisy Dunne.โNitrogen fertilizer use could โthreaten global climate goalsโ,โ Carbon Brief, September 7, 2020. Archived November 25, 2021. Archive URL: https://archive.fo/L9DNY
Today the global climate impact of nitrogen fertilizer alone is greater than the impacts of commercial aviation, contributing roughly 2 percent of all global emissions.38Dana Drugmand, Steven Feit, Lili Fuhr, and Carroll Muffett, โFossils, Fertilizers, and False Solutions: How Laundering Fossil Fuels in Agrochemicals Puts the Climate and the Planet at Risk,โ Centre for International Environmental Law, October 2022. Archived November 1, 2022. Archived .pdf on file at DeSmog. 39GRAIN, Greenpeace International and Institute for Agriculture and Trade Policy (IATP). โNew research shows 50 year binge on chemical fertilisers must end to address the climate crisis,โ November 1, 2021. Archived August 2, 2022. Archive URL: https://archive.ph/7sbQ7
In May 2020, the EUโs Farm to Fork strategy set a goal to reduce at least 20 percent of nutrient losses on EU farms by 2030, which could translate into a 20 percent reduction in synthetic fertilizer use.40โEU Farm to Fork Strategy,โ European Commission. Archived on November 25, 2021, Archive URL: https://archive.ph/wip/d0SZD 41Kerstine Appunn. โEUโs Farm to Fork strategy impacts climate, productivity and trade,โ Clean Energy Wire, March 5, 2021. Archived November 26, 2021. Archive URL: https://archive.fo/iwt40
Stance on โIntensificationโ as Climate and Biodiversity Solution
EuroChem lobbies for โintensificationโ โ producing more food on the same amount of land, with synthetic fertilizers playing a key role โ as a solution to the biodiversity, soil health, and climate crises.
In 2021, in response to Brusselsโ plans on land use and land change, EuroChem sent the European Commission a paper exploring possible policy approaches: intensification and โextensification,โ or expanding the amount of land used for food production.42Thomas Mannheim, Catarina Henka, EuroChem. โIntensive Landwirtschaft und Schutz der Biodiversitรคt – Ein Widerspruch? Intensive Landwirtschaft ist Teil des Biodiversitรคtsschutzes,โ European Commission, November 2019. Archived August 1, 2022. Archived .pdf on file at DeSmog.
The paper, which EuroChem had published in 2019, argued that synthetic fertilizers had a role to play in โsustainable intensification,โ through targeted use contributing โsignificantly to high yieldsโ without increasing the amount of land devoted to food production. By contrast, according to the paper, agricultural practices that minimized or eliminated use of synthetic fertilizers, such as organic farming, would lead to conversion of more land to agricultural use to achieve the same yields, further harming biodiversity and climate:43Thomas Mannheim, Catarina Henka, EuroChem. โIntensive Landwirtschaft und Schutz der Biodiversitรคt – Ein Widerspruch? Intensive Landwirtschaft ist Teil des Biodiversitรคtsschutzes,โ European Commission, November 2019. Archived August 1, 2022. Archived .pdf on file at DeSmog. 44โContributions โ LULUCF Revision – 2021,โ European Commission, 2021. Archived August 1, 2022. Archived .csv on file at DeSmog.
โOnly through a sustainable intensification of agricultural production climate objectives and food security can be jointly achieved whilst securing the economic survival of EU farmersโฆ[T]he EU must urgently abandon its extensification strategy for agriculture laid out in the Farm-to-Fork strategy, e.g. 25% organic farming by 2030, as considerably less food per hectare is produced with organic farming.โ
It concluded: โReduction targets [on fertilizer use] would have even more detrimental effects.โ
In 2021, EuroChem repeated this message in its public consultation response to the โNew EU Soil Strategy – healthy soil for a healthy life,โ proposal, stating that โthe Commissionโs extensification strategy of increasing organic farming by 25% is both absurd and detrimental.โ45EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog. 46โContributions โ Healthy soils โ new EU soil strategy,โ European Commission, February 2, 2021 – April 27, 2021. Archived August 1, 2022. Archived .cvs on file at DeSmog.
Academics, NGOs and policy makers have sharply challenged claims that intensification can provide a climate and biodiversity solution.
In 2015, the CGIAR research program on Climate Change, Agriculture and Food Security examined whether โsustainable intensificationโ could sufficiently reduce the emissions from agriculture. It found that: โNeither business-as-usual intensification of agriculture nor moderate adoption of mitigation practices will reduce emissions enough to avoid a 2-degree C temperature increase in 2100 compared to pre-industrial levels.โ47Julianna White, โSustainable intensification will not keep us within the 2-degree goal for 2030,โ CGIAR research program on Climate Change, Agriculture and Food Security, April 9, 2015. Archived July 28, 2022. Archive URL: https://archive.ph/W5F8P
The argument that fertilizer use is a necessary solution to global food needs has also been widely criticized.48Sarah Yang. โCan organic crops compete with industrial agriculture?,โ Berkeley News, December 9, 2014. Archived July 28, 2022. Archive URL: https://archive.ph/OWD0C
โ[Attempts to] grow more by spreading more nitrogen fertiliser and destroying what is still ecologically useful will only further deteriorate the production capacity of agricultural systems,โ according to agronomist Pierre-Marie Aubert, from French think tank IDDRI.49Harald Schumann, Nico Schmidt and Alicia Prager. โThe battle over pesticides in Europe,โ Investigate Europe, June 24, 2022. Archived July 28, 2022. Archive URL: https://archive.ph/POsZd
Yet, agribusiness interests are using these arguments to โlock-inโ dependence on industrial, chemical-intensive forms of farming, which are harming both biodiversity and climate, according to the International Panel of Experts on Sustainable Food Systems (IPES-Food).50โFrom Uniformity to Diversity โ A paradigm shift from industrial agriculture to diversifed agroecological systems,โ International Panel of Experts on Sustainable Food Systems, 2016. Archived July 28, 2022. Archive URL: https://archive.ph/rrzNt
Stance on Sustainable Agriculture and Pollution Reduction Plans
EuroChem has lobbied against key elements of the EUโs Green Deal related to fertilizers and farming.
In February 2021, the company submitted a response to the European Commissionโs Public Consultation on the EUโs action plan towards zero pollution of air, water and soil.51EuroChem. โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโ,โ European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog. The plan aims to reduce air, water, and soil pollution to โlevels no longer considered harmful to health and natural ecosystemsโ by 2050. It includes key targets to improve soil quality, by reducing nutrient losses (which largely come from synthetic fertilizers) and chemical pesticide use by 50 percent.
Its response stated that the consultation process was โmissing considerations of the huge agronomic and economic benefits of agriculture in general and specifically of fertilization ensuring food production and providing affordable high-quality food for millions of consumers in the EU and worldwide.โ52EuroChem. โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโ,โ European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
EuroChem accused the commission of being unrealistic by trying โto present the image of an ideal world, without saying that such an unrealistic scenario leads to a severe disruption of social and economic activities.โ EuroChem argued that โquantitative reduction targets for fertilizers on EU level, as indicated in the F2F, is pointless and counterproductive.โ EuroChem advocated for managing nutrient levels at a regional level, and suggested that additional monitoring of pollution was โcertainly not necessary,โ because the agricultural sector already had โwell-establishedโ systems in place.53EuroChem. โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโ,โ European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
EuroChemโs criticism of the legislation hinged on a 2020 impact assessment of Farm to Fork by the U.S. Department of Agriculture (USDA) that examined the effect that the Farm to Fork Strategy could have on agricultural production and farmer revenues. The USDAโs analysis found that Farm to Fork could lead to significant reductions in EU agricultural production, and possible rises in consumer prices and imports.54Jayson Beckman, Maros Ivanic, Jeremy L. Jelliffe, Felix G. Baquedano, and Sara G. Scott. โEconomic and Food Security Impacts of Agricultural Input Reduction Under the European Union Green Dealโs Farm to Fork and Biodiversity Strategies,โ United States Department of Agriculture Economic Research Service, November 2020. Archived December 15, 2022. Archived .pdf on file at DeSmog.
EuroChemโs submission claimed that the USDA study โconfirm[ed] our strong concerns.โ55EuroChem. โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโโ, European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
The USDA study is one of seven impact assessments conducted to date on the impacts of Farm to Fork. Of the seven studies, five have been financed and shaped by major industry players.56Nina Holland and Rachel Tansey. โA loud lobby for a silent spring: the pesticide industryโs toxic lobbying tactics against Farm to Fork,โ Corporate Europe Observatory, December 2021. Archived May 24, 2022. Archived .pdf on file at DeSmog.
Multiple NGOs and academics have criticized the studies, arguing that they only give a โpartial and incompleteโ picture of the EUโs plans.57Alice Poiron. โWhy Attacks Against the EU Farm to Fork Strategy Completely Miss the Point,โ Slow Food, February 9, 2022. Archived October 25, 2022. Archive URL: https://archive.ph/hwUqD For example, they do not consider positive impacts from more sustainable production, such as the impact that a more thriving bee population could have on crop pollination.58Nina Holland and Rachel Tansey. โA loud lobby for a silent spring: the pesticide industryโs toxic lobbying tactics against Farm to Fork,โ Corporate Europe Observatory, December 2021. Archived May 24, 2022. Archived .pdf on file at DeSmog. They also fail to consider what will happen if no action is taken, and climate breakdown and biodiversity loss lead to a global crisis in food production.59โGreen Deal targets for 2030 and agricultural production studies โ Fact Sheet,โ European Commission, February 2022. Archived August 4, 2022. Archived .pdf on file at DeSmog.
Lobby watchdog Corporate Europe Observatory accused industry members of using the studies โto scaremonger about economic losses while painting an unfair pictureโ about the impact of F2Fโs fertilizer reduction targets.60โA loud lobby for a silent spring: The pesticide industryโs lobbying tactics against Farm to Fork.,โ Corporate Europe Observatory, March 17, 2022. Archived July 26, 2022. Archive PDF: https://archive.ph/hpFb3
Agrochemical interests including EuroChem have widely called for the European Commission to conduct its own impact assessment.61EuroChem. โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโ,โ European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
In July 2021, EuroChem Head of Public Affairs Igor Shmidt wrote in Fertilizer International Magazine:62Facebook post by EuroChem, July 23, 2021. Archived August 1, 2022. Archived .png on file at DeSmog.
โRegrettably, the European Commission has shied away from presenting its own comprehensive impact assessment of the Farm to Fork Strategy, while being critical of other institutions, such as the US Department of Agriculture (USDA), that have willingly undertaken such studies.
Corporate Europe Observatory stated that โsuch assessments tend to favour economic factors over social and environmental ones, only delaying progress towards tackling the climate emergency.โ63Vicky Cann. โExploiting the Ukraine crisis for Big Business,โ Corporate Europe Observatory, July 28, 2022. Archived October 25, 2022. Archive URL: https://archive.ph/dSLE8
Stance on EU Soil Strategy
In EuroChemโs response to the EU Soil Strategy, a policy plan for improving soil health to help foster biodiversity and capture atmospheric carbon, the company stated that โEuropean farmers are already struggling under excessive burdensome environmental legislations.โ64EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
EuroChem has argued that issues such as pollution and soil health should be managed by Member States, rather than by EU-wide legislation.65EuroChem. โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโ,โ European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog. 66EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
In April 2021, EuroChem stated that โsoil has no cross-border effect and, consequently, no EU legal framework for soil should be introduced in the future.โ67EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
Stance on Carbon Border Adjustment Mechanisms
In 2020, EuroChem responded to the European Commissionโs plans for a carbon border adjustment mechanism (CBAM). The plans aimed to level the costs of higher-emission imports with products produced under stricter carbon-neutral targets in the EU.68EuroChem. โAdditional comments on the CBAM consultation,โ European Commission, October 28, 2020. Archived August 1, 2022. Archived .pdf on file at DeSmog.
EuroChem suggested that climate policies were being โmisused as modified trade defense instruments to protect EU companies from better performing competitors outside Europe.โ
EuroChem continued:
โThe European Commission is also spreading false rhetoric by claiming that the EUโs trading partners will hesitate to impose counter-measures once a CBAM is introduced. Being international and working with many international governments, we can affirmatively state that they will not hesitate a minute to take counter-measures.โ
EuroChem suggested that the EU was imposing CBAM โwithout proper consultation at international level with other key global trading partners.โ
EuroChem suggested that because of this, the measures would โundercut and undermine the global dialogue on climate, discouraging and potentially leading to countriesโ withdrawals altogether.โ
EuroChem also suggested that CBAM would be โcounterproductive for the EU fertilizer industry to innovate and to decarbonize.โ According to the company, the EU should focus instead on designing a โbusiness-friendlyโ framework to support decarbonization technologies, particularly carbon capture, utilization, and storage (CCUS).69EuroChem. โAdditional comments on the CBAM consultation,โ European Commission, October 28, 2020. Archived August 1, 2022. Archived .pdf on file at DeSmog.
Funding
According to its 2021 annual report, EuroChem had a turnover of US$10.2 billion in 2021. The company reported the following sales by volume to be: 34% nitrogen, 14% complex, 11% phosphates, 9% potash, 22% mining products, 10% industrial products.70โ20 years of growth – 2021 Integrated Report,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/efSEV
According to its 2020 annual report, Europe accounted for 27% of EuroChemโs sales and Latin America for 25 percent of sales. North America and Asia-Pacific each accounted for 16 percent of sales, , Russia for 14 percent, and Africa for 2 percent.71โResilience in action – 2020 Annual Reports and Accounts,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/pyUvP
Lobbying
EuroChem spent 100,000 – 199,999 euros on lobbying in 2020, according to the EU transparency register.72โEuroChem Group AG,โ EU Transparency Register, November 15, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/2jJ9v
Between 2018 and 2020, EuroChem spent 550,000 – 750,000 euros in total, and in 2020 employed two lobbyists registered in the EU Transparency Register.73โEuroChem Group AG,โ LobbyFacts.eu. Archived August 2, 2022. Archive URL: https://archive.ph/p8H8J
EuroChem states that its primary policy targets are legislation and plans involving:74โEuroChem Group AG,โ EU Transparency Register, November 15, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/2jJ9v
- Fertilizer regulation
- Industry and trade
- Energy
- Agriculture policy, such as the Common Agricultural Policy
- Environmental regulations, including soil, water, and air
- Chemical regulations or REACH
- Climate change and energy policies such as the EU Emission Trading Scheme or CBAM
EuroChem did not disclose any meetings held with senior members of the European Commission in 2021.75โEuroChem Group AG,โ EU Transparency Register, November 15, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/2jJ9v
Affiliations
EuroChem is a member of the European Chemical Industry Council (CEFIC).76โList of Corporate Members (ACOM),โ CEFIC, May 2022. Archived December 19, 2022. Archived .pdf on file at DeSmog.
EuroChem was previously a member of Fertilizers Europe. In March 2022, Fertilizers Europe announced that in response to Russiaโs invasion of Ukraine and EU sanctions of Melnichenko, it had โdecided to suspend the membership of EuroChem Group as of 23 March 2022. An Extraordinary General Assembly will be called towards end of April to take a formal decision on EuroChemโs membership.โ77โFertilizers Europe Suspends the Membership of EuroChem Group,โ Fertilizers Europe, March 23, 2022. Archived August 2, 2022. Archive .pdf on file at DeSmog.
As of November 2022, EuroChem was no longer listed as a member of the industry group.78โMembers,โ Fertilizers Europe. Archived August 2, 2022. Archive URL: https://archive.ph/I258Q
EuroChemโs 2022 submission to the EU Transparency Register stated that it was a member of the International Fertilizer Association (IFA).79โEuroChem Group AG,โ EU Transparency Register, November 15, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/2jJ9v
However, the company was no longer listed on the IFAโs membership list.80โOur Members,โ International Fertilizer Association. Archived August 2, 2022. Archive URL: https://archive.ph/O9BxA.
EuroChemโs Transparency Register entry also stated that โEuroChem Group is through its production and sales, R&D locations also a member of the national fertilizer associations throughout the EU and abroad (e.g. Industrieverband Agrar).โ81โEuroChem Group AG,โ EU Transparency Register, November 15, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/2jJ9v
Resources
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- 64EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
- 65EuroChem. โOur additional comments on the consultation โTowards zero pollution in air, water and soil โ EU action planโ,โ European Commission, February 10, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
- 66EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
- 67EuroChem. โAdditional comments on the consultation โHealthy soils โ new EU soil strategyโ,โ European Commission, April 27, 2021. Archived August 1, 2022. Archived .pdf on file at DeSmog.
- 68EuroChem. โAdditional comments on the CBAM consultation,โ European Commission, October 28, 2020. Archived August 1, 2022. Archived .pdf on file at DeSmog.
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- 70โ20 years of growth – 2021 Integrated Report,โ EuroChem. Archived August 1, 2022. Archive URL: https://archive.ph/efSEV
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- 76โList of Corporate Members (ACOM),โ CEFIC, May 2022. Archived December 19, 2022. Archived .pdf on file at DeSmog.
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- 78
- 79โEuroChem Group AG,โ EU Transparency Register, November 15, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/2jJ9v
- 80โOur Members,โ International Fertilizer Association. Archived August 2, 2022. Archive URL: https://archive.ph/O9BxA.
- 81โEuroChem Group AG,โ EU Transparency Register, November 15, 2022. Archived August 2, 2022. Archive URL: https://archive.ph/2jJ9v