Platts proposes to launch calculated CBAM costs for CFR Northwest Europe ammonia assessments Nov. 28

Platts, part of S&P Global Commodity Insights, proposes to launch a calculated value for costs associated with the European Union (EU) Carbon Border Adjustment Mechanism (CBAM) for ammonia being delivered to Northwest Europe, effective Nov. 28, 2025.

Simultaneously, Platts clarified in this subscriber note that existing daily and weekly CFR Northwest Europe ammonia assessments will not include costs associated with CBAM when the regime comes into effect in January 2026.

The new weekly CBAM cost value would be calculated using the following formula:

CBAM exposure mt CO2e/mt ammonia (EC default carbon intensity value – (EC benchmark free allowance for ammonia * CBAM factor)) * carbon cost $/mt (EU Emission Allowance (EUA) Nearest December EUR/mt WAvg [EADMP04] * EUR-USD [EUU1200])

The calculation would:

• Use the prevailing European Commission (EC) default carbon intensity value for ammonia (currently 2.82 mt CO2e for 2025)
• Use the prevailing EC benchmark carbon intensity value (currently 1.57 mt CO2e for 2025)
• Account for the phase out of free allowances from 2026 to 2034. For example, a 2.5 percentage point reduction to 97.5% in 2026
• Use the Platts EUA Nearest December EUR/mt assessment weekly average (EADMP04)
• Assume all certificates will be bought relative to the EU ETS cost without differentiating based on potential origin offsets

Platts also proposes to launch two calculated CFR Northwest Europe ammonia assessments that reflect Platts existing CFR ammonia assessments plus the costs associated with CBAM, effective Nov. 28, 2025.

The proposal to launch a calculated CBAM value and daily and weekly CFR Northwest Europe duty paid/duty free plus CBAM costs assessments is based on market feedback and follows a month-long consultation, published here, on the impact of CBAM on several ammonia and fertilizer assessments.

The proposed assessments for ammonia delivered to Northwest Europe would also reflect the potential low-carbon premium for ammonia that meets or exceeds the free allowance threshold.

The specifications of the proposed daily and weekly assessments are detailed below.

(Calculated) Ammonia CFR Northwest Europe duty paid/duty free plus CBAM costs - daily

Quality: Anhydrous ammonia, which is around 82% Nitrogen and is stored and transported as a liquid under pressure at around -33 degrees Celsius

Quantity: Basis 15,000 mt

Basis and location: T2 spot product, CFR Antwerp/Rotterdam, NWE (assessment considers market activity at ammonia-importing terminals in NWE, defined as Finland-France range)

Carbon intensity: European Union (EU) default carbon intensity value for ammonia

Timing: Delivery one to six weeks forward

Frequency: Daily

Unit of assessment: $/mt

Timestamp: 16:30 London close, published according to the London publishing calendar

The proposed weekly (Calculated) Ammonia CFR Northwest Europe duty paid/duty free plus CBAM costs range assessment would reflect the lowest and the highest of the daily (Calculated) Ammonia CFR Northwest Europe duty paid/duty free plus CBAM costs assessments published over the course of the preceding week. In addition, Platts would publish a weekly assessment each Thursday, that effectively mirrors the daily assessment of the day.

Platts' proposal to launch these assessments on Nov. 28, 2025, reflects the desire to capture trades, offers, bids and indicative price information starting from January deliveries to Northwest Europe.

Platts seeks feedback on all elements of this proposal, including the Nov. 28, 2025, launch date and the basis CI specification.

Under CBAM, which is due to enter its "definitive regime" on Jan. 1, 2026, those importing ammonia into the EU will be required to report the embedded emissions of imported product and purchase CBAM certificate to cover embedded emissions above a benchmark free allowance.

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 rate; this CBAM threshold will gradually decline until importers are responsible for the full cost of emissions by 2034. The free allowance for importers of ammonia in 2026, based on the current free allowance afforded to producers of ammonia in the EU of 1.57 mt CO2e/mt ammonia, would be roughly 1.53 mt CO2e/mt ammonia (1.57*0.975), and importers would be required to purchase CBAM certificates to cover embedded emissions above this level.

Please send any feedback, questions and comments to fertilizer@spglobal.com and pricegroup@spglobal.com by Oct. 17, 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.