UK CBAM: AIC Highlights New Fertiliser Default Values Provide Greater Certainty for Industry
The Agricultural Industries Confederation (AIC) says the UK fertiliser industry can now better assess the potential cost implications of the Carbon Border Adjustment Mechanism (CBAM) at product level, following the publication of fertiliser-specific default emissions values.
Published by HM Revenue & Customs on 16 October, the values represent an important milestone for businesses preparing for UK CBAM from January 2027. Alongside an illustrative fertiliser CBAM rate of £1.45 per tonne of CO₂ equivalent, they provide businesses with more of the information needed to understand potential liabilities and plan for implementation.
However, AIC cautions that the picture is not yet complete. The Government has made clear that the illustrative rates are based on preliminary data and should not be interpreted as the rates that will apply when CBAM liability begins. The first applicable rates will be published before the end of 2026.
Harriet Trewin, AIC Head of Fertiliser said: "The publication of fertiliser-specific default emissions values is an important step towards giving businesses greater clarity as they prepare for the introduction of UK CBAM in January 2027.
However, there is still further detail to come, and the illustrative rate published by Government should not be viewed as the final cost businesses will face. AIC is working closely with Members to understand the practical and commercial implications and will continue engaging with Government as the final arrangements take shape.”
Author
Harriet Trewin
Harriet Trewin is AIC’s Head of Fertiliser and lead AIC's fertiliser policy, regulatory and stewardship work, supporting Members across the agricultural supply chain on key technical, environmental and legislative developments.
