Fertilizers Europe: EU 2040 climate target is make or break for a competitive low-carbon fertilizer industry

The European fertilizer industry is uniquely placed to enhance both the sustainable food systems with low-carbon fertilizers and the EU hydrogen economy, with clean ammonia acting as hydrogen facilitator. It is paramount that the EU puts its industrial strategy at the forefront, providing fertile ground for green investments in Europe. A successful transition to renewable and low-carbon fertilizer production can only materialise if European producers remain globally competitive.

“Today, our industry faces one of the most severe economic downturns in years, with volatile and high gas prices and surging carbon intensive imports negatively impacting our competitiveness. Halted production, job losses and investment leakage are among the consequences the European fertilizer industry is already facing. Ensuring a compelling business case for decarbonising sectors vital to Europe’s Strategic Autonomy has never been more important,” said Antoine Hoxha, Director General of Fertilizers Europe. Hoxha underlined, “European fertilizer producers have the ambition and the plans to deliver high emission reduction to continue producing, investing and thriving in Europe. In this regard, we call on the European Commission to recognise the scale of this challenge and the necessity to unlock funding towards decarbonisation of existing assets, ensure access to affordable low-carbon and renewable energy and develop a supportive regulatory framework. He added, “It is good news that CCS/U has been recognised as an important decarbonisation pathway, vital for hard-to-abate sectors such as fertilizers”. “The cost of decarbonising our sector exceeds €80 billion. This transition will simply not materialise without a substantial and targeted financial support for our sector and a close collaboration across the value chain to create a booming market for low-carbon food and fertilizers,” said Hoxha. “Our industry is committed to support farmers in implementing sustainable nutrient management practices. To this end, EU and national policies must incentivise an uptake of digital tools, new products and advisory services. This will ensure that EU farmers have access to cutting-edge technologies, enabling them to maximise the efficiency of nutrient application while mitigating scope 3 emissions from agriculture,” he concluded.

Read the article online at: https://www.worldfertilizer.com/special-reports/18022024/fertilizers-europe-eu-2040-climate-target-is-make-or-break-for-a-competitive-low-carbon-fertilizer-industry/