The European Union's Carbon Border Adjustment Mechanism (CBAM) entered into force on 1 January 2026 and is fully operational. This means that, from that date, all imports of certain fertilizers into the European market are subject to an additional cost linked to their carbon emissions at source.

Following a meeting held on January 7, the European Commission announced several proposals to compensate for possible price increases related to the introduction of CBAM in fertilizers, which has generated confusion about the entry into force of this mechanism and the reality of its application.

This statement aims to clarify what these proposals consist of and the real impact they could have on the application of CBAM:

- Eliminate standard tariffs: For years, some products, such as urea and ammonia, have carried additional tariffs depending on their origin. The Commission has proposed eliminating these tariffs to help offset the cost of CBAM.

- Establishing exceptional mechanisms: Should serious and unforeseen market circumstances arise, the Commission could activate a mechanism to temporarily suspend the CBAM. The Commission will monitor market prices for products affected by the CBAM to ensure market stability.

IMPORTANT:

These measures have not yet been approved. They are merely proposals from the Commission, which would have to be published and submitted to the Council and the European Parliament for approval.

Therefore, the CBAM is fully operational and will continue to be implemented as planned. The announced proposals neither suspend nor modify it.

The National Association of Fertilizer Manufacturers (ANFFE) supports any measure that, while incentivizing a low-emission economy and promoting decarbonization, preserves industrial competitiveness and protects local industry from cheaper imports due to lower environmental standards. Therefore, an appropriate regulatory framework is essential to guarantee the supply of fertilizers, facilitate investment, and safeguard Europe's strategic autonomy.