The European Commission is preparing to ease the initial impact of its carbon border adjustment mechanism (CBAM) on fertilizer imports, according to leaked internal documents. The draft shows that default carbon values for fertilizers would carry a markup of just 1pc, far below earlier expectations of around 30pc, reducing the cost burden for importers that rely on default data rather than plant-specific emissions figures. A default product benchmark for DAP is set at 0.339, with country-level default values used where verified emissions data are unavailable.

CBAM charges will be calculated by combining the product benchmark with a CBAM factor and the EU emissions trading scheme price, although importers can lower their levy by submitting verified plant-level emissions data.

The commission has internally approved five key CBAM implementing acts covering emissions calculation, certificate pricing, registries, authorised declarants and verification rules, with formal adoption expected by mid-December. However, proposed legislative revisions to CBAM have been delayed, though officials insist they will still be presented before year-end, potentially alongside broader climate policy updates.