Platts proposes to launch weekly calculated CBAM cost for CFR Northwest Europe ammonia assessments

Following an initial proposal published Sept. 15, 2025, Platts is proposing 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 Jan. 2, 2026.

Platts initially proposed to launch a calculated differential and daily and weekly calculated outright assessments, reflecting the maximum liability for ammonia importers under CBAM.

The proposed calculation was based on the difference in CBAM exposure in US dollar between the import of material whose carbon intensity (CI) was at the default value (then 2.82 mt CO2e) and the import of material at the so-called "benchmark value" (then 1.57 mt CO2e).

Since the proposal was published, the EU has withdrawn both the default value and the benchmark value, with a plan to reissue them at amended levels in early 2026. As a result of this change and feedback from the market, Platts is adjusting its proposal.

Under the new proposal, Platts would launch only one new assessment, a differential representing the difference in price between the import of material whose CI was in line with the standard for imported ammonia and the import of material at a level on which no CBAM would be charged (the "benchmark value"). This number provides subscribers with a snapshot of a "typical" CBAM exposure and allows them to generate an outright value when used in combination with the four existing CFR Northwest Europe ammonia assessments.

The proposed weekly CBAM cost value would be calculated using the following formula and inputs:

A – (B*C) * D = CBAM cost

A. The typical CI of imported material into Northwest Europe as calculated by Platts, which would initially be 2.2 mt CO2e/mt ammonia, based on the weighted average of default country of origin carbon intensity values previously published by the European Commission (EC) and EU import statistics

B. The prevailing EC benchmark carbon intensity value. In the temporary absence of an official value, Platts proposes to use the EC's most recent official CI of 1.57 mt CO2e for 2025 until a CI for 2026 is confirmed

C. The official EC multiplier for the phase out of free allowances from 2026 to 2034. In 2026, this level has been set at a 2.5 percentage point reduction (giving a multiplier of 97.5%)

D. The cost per point of CI, as represented by the Platts EUA Nearest December Eur/mt assessment weekly average (EADMP04) converted into US dollar, based on the expectation that all certificates will be bought relative to the EU ETS cost without differentiating based on potential origin offsets

As an example, using the EU Emission Allowance Nearest-December weekly average and Eur/US dollar assessments from Oct. 17, 2025:

2.2 mt CO2e – (1.57 mt CO2e * 0.975) * (€78.32/mt *1.166100) = $60.23/mt

The weighted average carbon intensity for ammonia imported into the EU of 2.2 mt CO2e used within the calculation is based on default country of origin carbon intensity values and EU import statistics. The use of this value within the weekly CBAM cost calculation will be regularly reviewed and adjusted in the future where necessary.

Platts views 2.2 mt CO2e as a representative CI level for imports of ammonia as represented in its physical Northwest Europe non-low carbon assessments, which are:

• 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 – daily (ACNED00)
• Ammonia CFR NW Europe duty unpaid – weekly (FANEA04)

The proposed CBAM differential would be applicable to the close value of all four assessments.

The proposal to launch a calculated CBAM value follows a month-long consultation, published here, on the impact of CBAM on several ammonia and fertilizer assessments.

Platts also clarified here that CFR Northwest Europe ammonia assessments will remain exclusive of CBAM costs from January 2026.

The calculated CBAM cost assessment would feature in the weekly Ammonia Market Report and be available via Platts Connect.

Please send any feedback, questions and comments to fertilizer@spglobal.com and pricegroup@spglobal.com by Nov. 28, 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.