Platts to launch weekly calculated CBAM cost for CFR Northwest Europe ammonia assessments Jan. 2

Platts, part of S&P Global Energy, will launch a calculated value for costs associated with the EU Carbon Border Adjustment Mechanism for ammonia being delivered to Northwest Europe, effective Jan. 2, 2026.

The calculated CBAM cost, which will be generated each Friday and follow the London publishing calendar, will provide a snapshot of a typical CBAM exposure and allow subscribers to generate an outright value when the value is used in combination with the four existing CFR Northwest Europe ammonia 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 – daily (ACNED00)
• Ammonia CFR NW Europe duty unpaid – weekly (FANEA04)

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

(A – (B*C)) * D = CBAM cost

A. The typical carbon intensity of ammonia imported into Northwest Europe as calculated by Platts, which will initially be 2.2 metric tons of CO2 equivalent/mt ammonia based on the weighted average of default country of origin carbon intensity values previously published by the European Commission and EU import statistics. The use of this value within the weekly CBAM cost calculation may be adjusted in the future, depending on, for example, market feedback, changes in typical CI, legislative changes or other relevant reasons, following appropriate consultation with the market and advanced notice in line with S&P Global Energy's published standards

B. The prevailing EC benchmark CI value. In the temporary absence of an official value, Platts will use the EC's most recent official CI of 1.57 mtCO2e 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 EU Allowance Nearest December euro/mt assessment weekly average (EADMP04) converted into US dollars, based on the expectation that all certificates will be bought relative to the EU Emissions Trading System cost without differentiating based on potential origin offsets

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

2.2 mtCO2e – (1.57 mtCO2e * 0.975) * (Eur78.32/mt *1.166100) = $60.23/mt

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

The decision to launch a calculated CBAM value for ammonia follows a proposal, published here, and a monthlong consultation, published here, on the impact of CBAM on several ammonia and fertilizer assessments. It was also clarified here that CFR Northwest Europe ammonia assessments will remain exclusive of CBAM costs from January 2026.

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