CBAM Charges for Nitrogen Fertilizers: Europe Prepares for a Major Shift in 2026

The CBAM charges for nitrogen fertilizers are set to transform Europe’s import structure when the Carbon Border Adjustment Mechanism takes effect in 2026. A leaked Brussels document has revealed projected carbon costs that could reshape how Europe buys and prices urea, nitrates, ammonium sulphate and UAN.

Traders say the early data sends a strong message: urea remains the most cost-efficient nitrogen product under CBAM.

🟦 Why CBAM Charges for Nitrogen Fertilizers Favor Urea

The CBAM charges for nitrogen fertilizers show urea faces the lowest proportional carbon cost, while delivering the highest nitrogen content (46%) per tonne. This gives urea a clear advantage over higher-carbon nitrate products.

Europe relies heavily on imported urea. The EU imported 6.23mn tonnes in 2024, with Egypt, Russia and Algeria supplying over 87% of total arrivals.

💶 Impact of CBAM on Urea Imports: Who Pays What?

Projected default CBAM costs:

• Egypt: €43/t

• Algeria: €45/t

• Nigeria: €49/t

• Russia: €50/t

• Uzbekistan & Turkmenistan: €58/t

These represent around 9–12% of EU urea prices. Urea remains competitive because its carbon cost per nitrogen unit is still the lowest among nitrogen fertilizers.

⚠️ How CBAM Affects Nitrate Fertilizers (AN, CAN, UAN)

Urea may benefit, but nitrate fertilizers face steep CBAM penalties:

UAN

• €68–95/t

• Represents 19–27% of EU UAN pricing.

Ammonium Nitrate (AN)

• €155–161/t

• A carbon cost equal to 33–38% of the inland price.

Calcium Ammonium Nitrate (CAN)

• €115–130/t

• Represents 33–37% of market value.

These higher costs could shift demand further toward urea.

⚙️ CBAM Cost Impact on Ammonium Sulphate (Amsul)

Ammonium sulphate shows the widest price variation:

• Egypt: €19/t (low impact)

• China: €74/t (high impact due to low N content)

China’s amsul, which surged in imports in 2024, may lose competitiveness under CBAM.

🔎 Uncertainty Ahead of 2026 Implementation

Market participants remain unsure how pricing formulas, trade flows and import origins will adjust once the regulation starts on 1 January 2026. However, expectations are clear:

• Urea will remain Europe’s dominant imported nitrogen fertilizer.

• High-CBAM products like AN, CAN and UAN may see reduced shipments.

• Importers may diversify origins to manage carbon costs.

Conclusion: A New Carbon-Driven Fertilizer Market

The latest projections show that CBAM charges for nitrogen fertilizers strengthen urea’s position while challenging higher-carbon nitrate products. Europe’s nitrogen market is set for structural change as carbon pricing becomes a decisive factor in fertilizer trade.

Sources : Argus