A broad range of industry stakeholders—including EU producers, importers, trading companies, distributors, and logistics providers—gathered in Vienna on 20–22 January 2026 for the International Conference Fertilizers 2026: Eastern and Western Europe, Baltic States & Balkans to discuss recent developments in the fertilizer market. As expected, the implementation of the Carbon Border Adjustment Mechanism (CBAM), which entered into force in January 2026, was a central topic of discussion. While the long-term implications of CBAM for the fertilizer industry remain difficult to predict, one message was clear: the agricultural sector is facing rising input costs—particularly for carbon-intensive products—and adaptability will be critical for businesses operating in this evolving regulatory environment. FertiStream representatives attending the conference highlighted several key trends and impacts shaping the market outlook:
Rising costs The introduction of CBAM is expected to raise prices of carbon-intensive fertilizers such as urea and ammonia in the EU, thereby increasing overall agricultural costs. In response to recent market disruption, the European Commission has introduced Article 27a, allowing for the temporary suspension of CBAM obligations in cases of serious and unforeseen circumstances.
Increased price volatility Regulatory uncertainty and potential supply constraints are likely to place upward pressure on fertilizer prices, contributing to greater volatility across European markets.
Stricter compliance requirements Importers will face heightened obligations related to emissions tracking, verification, and reporting, making compliance a central operational priority.
Shift toward low-carbon practices The conference underscored the importance of incentivizing greener production methods. Farmers and suppliers alike will need to adapt to improve efficiency and meet evolving regulatory and sustainability standards.
Strategic adaptation by key market players Major exporters to the EU, as well as large importers, must prepare to adjust to new cost structures and regulatory requirements, with direct implications for operational and commercial strategies.
As the fertilizer industry navigates these significant changes, stakeholders must remain vigilant and proactive in addressing the challenges posed by CBAM. While the transition toward greener practices presents opportunities for innovation and long-term growth, participants emphasized the importance of a balanced and cautious approach—one that supports environmental goals while safeguarding economic and social stability. As Italian Prime Minister Giorgia Meloni has noted: “In a desert there is nothing green.”
