Tag: CBAM

Irish MEPs have urged the European Commission to rethink its introduction of the carbon border adjustment mechanism (CBAM).

At the end of this year, the European Union’s Carbon Border Adjustment Mechanism (CBAM) will move from its transitional phase into its ‘definitive’ phase, whereby the carbon costs of goods entering the EU will need to be priced in. CBAM requires suppliers to calculate the carbon emissions of their fertilizer (and other, e.g. steel) products, including indirect emissions, for example from electricity consumed in the process, and emissions of precursor or raw materials. They will then need to purchase CBAM certificates to cover embedded emissions above the established free allowance benchmark rates determined by the European Commission: 1.57 tonnes CO2e/tonne ammonia and 0.23 tCO2e/t nitric acid.

FertigHy was founded in 2023 with the aim of developing, building and operating large-scale low-carbon fertilizer plants across Europe.

Selected highlights of the International Fertilizer Association’s Annual Conference in Monaco in mid-May.

In this CRU Insight, Halima Abu Ali and Charlie Stephen look at what changes to the EU’s carbon taxation regime will mean for the fertilizer industry.