European fertilizer industry welcomes Clean Industrial Deal, wants action

European fertilizer industry market participants have welcomed the EU's Clean Industrial Deal while also calling for firm actions to advance the package.

"The Clean Industrial Deal rightly focuses on energy-intensive industries and the Commission also emphasizes the strategic importance of fertilizer production...but the concrete actions are still missing," Yara President and CEO Svein Tore Holsether told Platts, part of S&P Global Commodity Insights. "More needs to be done to drive demand for low-carbon solutions," he said.

Other major European fertilizer producers similarly sought a swift execution of the Commission's vision. The Clean Industrial Deal "is a strong signal for our industry and gives hope for better framework conditions for our European activities," a spokesperson for BASF told Platts. "It is important for us to quickly and pragmatically implement the proposals."

The Clean Industrial Deal, released by the European Commission on Feb. 26, sets out a slew of programs to support both Europe's energy-intensive industries and the clean-tech sector. Some of the programs outlined include financial efforts such as the establishment of a Eur100 billion Industrial Decarbonization Bank as well as regulatory changes such as a simplification of rules to "accelerate the roll-out of renewable energy."

Changes to CBAM

Yara's Tore Holsether was critical of the Deal's timeline for proposing adjustments to the EU's Carbon Border Adjustment Mechanism by the first half of 2026 to address concerns that CBAM will hamper European exports.

"We cannot afford to wait until early 2026 for the inclusion of a strategy regarding exports from industries covered by CBAM," he told Platts. "A functioning CBAM coupled with a solution for exports is essential to support the competitiveness of the European fertilizer industry on a global scale. Without a mechanism adjusting the carbon cost on exports, European products will become uncompetitive and will be displaced by more emission-intensive alternatives."

The European Commission also separately proposed adjustments to CBAM's rollout on Feb. 26. Under the proposal, importers would not have to purchase CBAM certificates for carbon emissions embedded in goods brought into the EU in 2026 until February 2027 — a delay of about one year compared to the earlier policy.

In response, Fertilizers Europe, an industry association, underscored a desire that any adjustments to CBAM did not hinder its effectiveness.

"It is crucial that CBAM starts its application in 2026," Jasmine Barahman, who handles climate policy and EU affairs for Fertilizers Europe, told Platts. "It is fundamental that any simplifications don't endanger a strict enforcement of CBAM which should mirror as much as possible the ETS [Emissions Trading System]."

Platts assessed its CFR Northwest Europe ammonia spot price at $580/mt on Feb. 26.