The warming of the Earth’s climate poses significant risks to human and natural systems, primarily driven by anthropogenic GHG emissions. Effective reduction of these emissions requires a global approach across all sectors. This study focuses on the EU’s climate policy, specifically examining the policy instruments available to reduce GHG emissions in agriculture and their efficiency. It explores the role of agriculture as a contributor, victim, and potential benefactor in the context of climate change, while providing an overview of international, EU, and German climate policies. The analysis considers theoretical policy instruments for GHG reduction, emphasizing the management of global commons, including the Earth’s atmosphere, and addressing negative externalities associated with GHG emissions. An overview of existing measures aimed at reducing agricultural GHG emissions is presented, alongside an empirical analysis using the GTAP model. This model is modified to allow substitution between land and fertilizer, with the database expanded to include the fertilizer sector. The study examines the impacts of pricing policies on GHG emissions from fertilizers and the effects of a consumption carbon tax on red meat and milk products. Results indicate that unilateral pricing on fertilizer production in Germany or the EU could negatively impact the fertilizer sector without achieving global GHG reductions, while a carbon tax on red
