Platts opens consultation on how to reflect CBAM in several ammonia, fertilizer assessments

Platts, part of S&P Global Commodity Insights, is initiating a consultation on the impact of the EU Carbon Border Adjustment Mechanism on a number of ammonia and fertilizer assessments and how best to account for this within its assessment methodology.

Under CBAM, which is due to commence the "definitive regime" on Jan. 1, 2026, importers of ammonia and certain types of fertilizer into the EU are required to report the embedded emissions of imported products. They will then need to purchase CBAM certificates to cover embedded emissions above the following established free allowance rates determined by the European Commission (also referred to as benchmarks):

1.57 mtCO2e/mt ammonia

0.23 mtCO2e/mt nitric acid

As CBAM is phased in, importers will be required to cover the cost of a growing share of embedded emissions. In 2026, they will be responsible for any emissions above 97.5% of the free allowance rates; this CBAM threshold will gradually decline until importers are responsible for the full cost of emissions by 2034.

For example, in 2026, the CBAM benchmark for 1 mt calcium ammonium nitrate, which requires 0.33 mt of ammonia and 0.59 mt of nitric acid to produce, would be 0.64 mtCO2e/mt CAN (e.g., [0.33 x 1.57] + [0.59 x 0.23]). Importers would have to purchase CBAM certificates accounting for any embedded emissions above this level, in line with the situation for domestic producers.

As such, Platts seeks feedback on how best to consider CBAM costs within its methodology for the following assessments:

Ammonia CFR NW Europe duty paid/duty free – daily (FANEB00)

Ammonia CFR NW Europe duty paid/duty free – weekly (FNWEA04)

Ammonia CFR NW Europe duty unpaid – weekly (FANEA04)

Calcium ammonium nitrate (CAN) CFR Ireland (FCANF04)

Platts seeks feedback on the following :

How buyers and sellers are looking to account for future costs associated with CBAM within a CFR price, as well as any consideration for intra-EU trade (i.e., sales on an FCA basis)

The relevance of adding a carbon intensity (CI) specification to each of these assessments, and whether that should reflect EU free allowances, EU default CI values, or industry average CI values for conventional "grey" ammonia and fertilizer

• Price information could be normalized to this point where necessary based on CI. For example, cargoes with a higher CI than the base specification could be normalized upwards on a CFR basis. Such an option would mean Platts' assessments would continue to reflect a CFR basis for product with additional liability for CBAM-related costs on the buyer's account.
• A potential implementation date for any changes, considering cargoes arriving in the EU will be liable to CBAM costs from Jan. 1, 2026.

Further, Platts seeks to consult on any requirements to understand the "CBAM cost" separated from the cost of the product itself and whether there is a need for Platts to also publish calculated CBAM costs associated with sales of cargoes. Platts understands CBAM costs will be calculated based on embedded emissions above the EU benchmark value minus any carbon tax paid at origin. The requirement to surrender certificates ramps up as free allowances for EU producers are phased out.

This consultation aims to inform a future proposal, which would provide an additional window for feedback, before any proposed changes to the assessment methodology would be confirmed.

Please send any feedback, questions and comments to fertilizer@spglobal.com and pricegroup@spglobal.com by June 13, 2025.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.