Platts clarifies CBAM costs will not be reflected in CFR Ireland calcium ammonium nitrate assessment

Platts, part of S&P Global Energy, wishes to clarify that its existing weekly calcium ammonium nitrate (CAN) 27% CFR Ireland assessment (FCANF04) will not include costs associated with the EU's Carbon Border Adjustment Mechanism (CBAM) from Jan. 1, 2026.

The assessment will continue to reflect the typical market value of CAN 27% arriving in Ireland, the majority of which originates from producers within the EU, which are already required under the EU Emissions Trading System (ETS) to purchase EU Emission Allowances (EUAs) to cover direct and indirect emissions above a benchmark free allowance -- a cost already baked into producer pricing.

Under CBAM, which is due to enter its definitive phase on Jan. 1, 2026, those importing certain carbon-intensive goods, including nitrogen-based fertilizers such as CAN, into the EU will be required to report the embedded emissions of imported product and, from 2027, purchase CBAM certificates to cover embedded emissions above a benchmark free allowance.

As a result, CAN produced outside the EU will face the same carbon scrutiny from January 2026, with a benchmark free allowance of 0.688 metric tons of CO2e for CAN approved recently by the EU CBAM committee.

It is expected, based on market feedback, that EU origin CAN will remain the predominant source of supply for the CFR market in Ireland in 2026.

Accordingly, price information relating to T2 product (EU origin CAN or customs cleared non-EU origin CAN) will continue to be prioritized from January, while price information relating to T1 product (not yet customs cleared non-EU origin CAN) will be normalized where necessary using disclosed or default carbon intensity values and the benchmark free allowance for CAN.

Platts encourages those market participants reporting bids, offers and trades to specify carbon intensities and will prioritize more granular information in the price assessment process.

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

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