The German Central Horticultural Association (ZVG) reports that applications for carbon leakage protection in energy-intensive greenhouse horticulture remain unprocessed by the European Commission. As a result, growers are still unable to apply for compensation measures related to national CO₂ pricing.
The EU's Carbon Border Adjustment Mechanism (CBAM) is designed to prevent companies from relocating production to countries with less stringent climate regulations—a phenomenon known as carbon leakage.
According to ZVG, the German government has already approved the applications for greenhouse vegetable production and mushroom cultivation and forwarded them to Brussels for final authorization. However, no response has been received since early 2024.
"Our applications have been awaiting final evaluation for almost three years," said Dr. Hans Joachim Brinkjans, Deputy Secretary General of ZVG. He described the delays as a bureaucratic obstacle that weakens the economic capacity of the horticultural sector.
ZVG calls for a more practical approach to the carbon leakage protection application process. The organization emphasizes that small and medium-sized horticultural businesses, which play an important role in food production and local economies, should not face additional administrative burdens.
ZVG refers to statements made by German Chancellor Friedrich Merz during the EU Council meeting in Brussels, where he emphasized the need to strengthen European competitiveness and criticized excessive regulation. The association aligns with this position.
Relocating to other countries
In April 2022, ZVG submitted applications under the German Carbon Leakage Regulation (BECV) to the German Emissions Trading Authority (DEHSt) for three subsectors: ornamental plant production under glass, greenhouse vegetable production, and mushroom cultivation.
In November 2024, the former Federal Ministry for Economic Affairs rejected the application for ornamental plant production under glass on formal grounds, a decision ZVG described as incomprehensible. The final assessment of the applications for greenhouse vegetable production and mushroom cultivation remains pending.