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

Platts, part of S&P Global Energy, has launched 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, provides a snapshot of a typical CBAM exposure and allows 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 is calculated using the following formula and inputs:

(A – (B*C)) * D = CBAM cost

A. The typical carbon intensity of ammonia imported into NWE as calculated by Platts, which is initially 2.2 metric tons of CO2 equivalent/mt ammonia based on the weighted average of 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 Carbo Intensity, 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 European Commission benchmark CI value for anhydrous ammonia of 1.522 mt CO2e, amended from the originally announced value of 1.57, in line with a note published here.

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 Dec. 24, 2025:

2.2 mt CO2e – (1.522 mt CO2e * 0.975) * (Eur88.12/mt * 1.1789) = $74.39/mt

The calculated CBAM cost assessment is available via Platts Connect and features in the daily Platts Fertecon Daily PDF and the weekly Ammonia Market Report PDF under the symbol code CBAMA00.

The launch follows a monthlong consultation, published here, on the impact of CBAM on several ammonia and fertilizer assessments, a proposal published here, and a decision published here.

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

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

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