Key Takeaways:
- Argus introduces the first-ever global assessments for low and zero-carbon calcium ammonium nitrate (CAN), crucial for European agriculture.
- These innovative assessments consider production methods using blue and green ammonia, aiming to lower the carbon footprint of nitrogen fertilizers.
- The initiative is part of the broader industry effort to reduce greenhouse gas emissions while maintaining agricultural productivity.
- Additionally, Argus prepares for the EU’s Carbon Border Adjustment Mechanism (CBAM) by incorporating emissions trading system (ETS) costs in its assessments.
- This move is designed to provide the nitrogen fertilizer industry with essential data to navigate the transition to a low-carbon economy.
A Pioneering Step Towards Sustainable Agriculture
In an effort to support the decarbonization of the agriculture sector, Argus Media has announced the launch of the world’s first assessments for low and zero-carbon calcium ammonium nitrate (CAN), a key nitrogen-based fertilizer. Addressing the environmental impact of nitrogen fertilizers, these assessments cover CAN produced with blue ammonia — utilizing natural gas with carbon capture technology — and green ammonia, derived from renewable energy sources.
Addressing the Industry’s Carbon Footprint
The fertilizer sector is under increasing pressure to reduce its environmental footprint, with nitrogen fertilizers accounting for a significant portion of its direct and indirect emissions. The development of CAN with reduced greenhouse gas emissions represents a critical strategy for preserving the role of nitrogen fertilizers in enhancing crop yields, but with a minimized impact on the planet.
Looking Ahead: The EU’s Carbon Border Adjustment Mechanism
In anticipation of the European Union’s Carbon Border Adjustment Mechanism (CBAM) expected in 2026, Argus is also offering calculated CAN assessments that include the current costs under the EU emissions trading system (ETS). This preparation reflects the need to align imported and domestically-produced CAN under the same environmental standards, ensuring that all products entering the EU market bear the cost of their carbon footprint.
Enhancing Market Transparency and Decision Making
Adrian Binks, Chairman and Chief Executive of Argus Media, emphasized the significance of these assessments in supporting the industry’s transition: “We have worked with the nitrogen fertilizer industry to identify the markets where it needs increased transparency and clarity. The energy transition requires significant investment and forward planning as well as action now, and these new cost assessments provide critical data that will inform better business decisions.”
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