Warning over supply of protected urea in 2026

Protected urea may not be available in Ireland in 2026, according to the Irish Fertiliser Manufacturers and Blenders Association (IFMBA).

The organisation has written to politicians, State agencies and farm organisations to highlight the risks posed by the introduction of the Carbon Border Adjustment Mechanism (CBAM), a new carbon tax on fertiliser imports from outside of the EU.

The letter said 80% of the urea used in Ireland is imported from outside the EU and that the CBAM will add €78/t to the cost of urea in 2026.

This is because the actual emissions factor for fertiliser manufactured outside of the EU cannot be verified, meaning importers will have to rely on default values.

The organisation said that the CBAM rules are “unworkable”, citing the fact that importers won’t know the actual cost of CBAM certificates until months after the fertiliser is imported.

“Importers are already being asked to quote for fertiliser deliveries in the first half of 2026 without knowing the applicable CBAM certificate costs, creating impossible conditions for pricing and contracting,” the letter states.

The IFMBA added that 43% or 580,000t of fertiliser imported into Ireland in 2024 originated from outside of the EU. It said that under-reporting emissions on fertiliser carries a penalty of €100/t CO2e.

“For 2024 volumes alone, this could amount to more than €61m in fines based on a carbon price of €75/t, not counting the reputational and legal risks.”

The organisation stated that if it halts or ceases the importation of non-EU urea, then Ireland faces a shortfall of 164,000t of urea/protected urea. In the 2023 to 2024 season, almost 60% of urea was treated with an inhibitor, the IFMBA stated.