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    Europe

    16 January 2026

    EU tackles rising fertilizer costs under CBAM through targeted tariff relief

    Recent developments show the Carbon Border Adjustment Mechanism (CBAM) remains active for fertilizers, but the European Commission proposes tariff reductions to offset import costs.


    Tariff suspension details

    The Commission will temporarily suspend remaining Most-Favoured-Nation (MFN) tariffs on ammonia, urea, and certain other fertilizers. Import tariffs from most-favoured nations stand at 6.5%, excluding higher staged tariffs on Russia and Belarus. These measures aim to pass benefits directly to farmers, with safeguards in place, and could enter force quickly to match CBAM costs.


    Ministerial calls for relief

    France’s Agriculture Minister Annie Genevard stated on 7 January that Trade Commissioner Maros Sefcovic agreed to a retroactive CBAM suspension for fertilizers from 1 January 2026. Italy’s Agriculture Minister Francesco Lollobrigida urged a “suspensive clause” on CBAM and immediate removal of the 6.5% duty on non-EU imports. France noted CBAM would raise farmer costs by 25% amid current crop prices, while Italy cited serious market circumstances.


    US ammonia faces high charges

    The Commission fixed ammonia’s default emissions intensity at 3.444 t CO2/t for the US—well above typical natural gas-based levels of 2 t CO2/t NH3—yielding CBAM charges around $175/t plus 5.5% duty. ‘There is unlikely to be any flow of US ammonia to the EU using the default method; US suppliers will have to report actual, verified emissions to avoid the prohibitive charge,’ said Charlie Stephen, Head of Nitrogen at CRU. Suppliers must report verified plant-specific data to avoid such costs, unlike lower defaults for Algeria (2.101), Russia (2.283), and Trinidad (2.444)—with only a 1% markup versus 20-30% for other commodities; Trinidadian, Algerian, and Egyptian ammonia enters duty-free, while Saudi and Russian face 5.5% duties.

    Latest in Europe

    Gazprom and PhosAgro sign new five-year sulphur deal

    Russian gas producer Gazprom and fertilizer giant PhosAgro have signed a new five-year agreement for the supply of sulphur, according to a report from Interfax on 5 June. The deal, signed at the St. Petersburg International Economic Forum (SPIEF), will see Gazprom continue to supply the key raw material for PhosAgro’s phosphate fertilizer production. The document was signed by Gazprom Deputy Chairman Vitaly Markelov and PhosAgro CEO Alexander Gilgenberg.

    Gouda Refractories Group acquires Revestimientos Refractarios

    Gouda Refractories Group has acquired Revestimientos Refractarios (RR), based in Madrid. Founded in 1979, RR specialises in the installation of refractory materials, serving customers across a wide range of industries, including petrochemicals, (waste to) energy, cement, and other industrial sectors. It is a trusted partner for the installation of refractory materials, hexmesh, anchoring, engineering, technical assistance, project management, inspections and supervision for shutdowns and turnarounds across the European Union. The company has a long history of cooperation with Gouda Refractories, which has intensified in recent years and which, due to a natural moment of succession, has led to this acquisition.

    Waste to energy demonstration plant completed

    Compact Syngas Solutions (CSS) says that it has completed work on a government funded demonstration project which aims to be “the next generation of waste-to-energy plants”. The new £4 million ($5.4 million) MicroHub plant, developed as part of the Department for Energy Security and Net Zero’s (DESNZ) Hydrogen BECCS Innovation Programme, produces hydrogen and electricity from biogenic waste while capturing carbon emissions using water scrubbing. Unlike traditional methods that use chemical solvents like amines, CSS’s system uses water to remove carbon dioxide from syngas, which the company says is a safer and more sustainable solution.

    NextChem completes Ballestra acquisition

    MaireGroup says that its NextChem subsidiary has completed the acquisition of the Ballestra group, a leading player in the licensing, design and engineering of processing plants, as well as in the supply of proprietary technologies and equipment for the chemical industry. NextChem says that the integration of Ballestra significantly strengthens its technology portfolio in phosphate and potassium fertilizers and completes its coverage of the full NPK (nitrogen, phosphorus and potassium) spectrum. At the same time, it provides access to new segments with high growth potential, particularly in chemistry for the production and circularity of strategic materials needed to develop and expand electrification, where Nextchem is already present with metals recovery technologies following the recent acquisition of ETEK.