CBAM Guide for the Fertilizer Sector

The fertilizer sector is represented by 6 different product groups under CBAM, and its coefficients are largely tied to N2O (nitrous oxide) emissions released during production. In this guide, we cover the sector's full coefficient table and a verified worked example.

For how CBAM works in general, the transition timeline, and the certificate cost formula, we recommend first reading our general CBAM guide — here we focus directly on the coefficients and example specific to the Fertilizer sector.

Fertilizer CBAM Product Catalog

CBAM covers 6 product groups in the Fertilizer sector (CN codes 2808, 2814, 2834, 3102, 3105):

Source: the CBAM section of our Bibliography page (full list of all 25 products).

Why Does Nitric Acid Have the Highest Coefficient?

Nitric Acid (2.50) has the highest coefficient because its production process releases N2O as a byproduct — a greenhouse gas with a GWP-100 value of 265, meaning it's 265 times more potent than CO2 (see the GWP-100 table on our Bibliography page). Urea (1.80) and NPK Compound Fertilizer (1.50) have relatively lower coefficients because the N2O share in their production process is smaller and energy consumption is predominantly CO2-driven. Ammonia (2.40) carries a medium-high coefficient since it's an intermediate for most of the fertilizer production chain and relies on natural gas steam reforming.

Worked Example

For a company exporting 150 tons of Ammonia (coefficient: 2.40 ton CO2e/ton):

Embedded Emissions = 150 tons × 2.40 = 360 ton CO2e
Cost = 150 × 2.40 × €72.5/ton (EU ETS price) × 0.10 (2026 phase-out rate) = €2,610.00

At the same export volume, this figure will rise to roughly 2.5 times that amount in 2027 (at a 25% rate), and 10 times that amount by 2032 (at a 100% rate) — see the transition timeline in our general CBAM guide for details.