The European fertilizer industry believes that the European Commission's proposed set of instruments on energy prices can only provide short-term assistance to industries whose competitiveness has suffered from an unbalanced energy market. Prompt and targeted action is critical as negative impacts on agri-food and other value chains must be avoided, while the fertilizer industry must remain able to invest in low-carbon technologies.

The operations of the European fertilizer industry are heavily influenced by sky-high gas prices. “In the fertilizer industry in the EU, natural gas traditionally accounts for up to 80% and production costs are rising. Exceptionally high gas prices made fertilizer production in Europe unprofitable, leading to significant temporary cuts and plant closures across Europe. If this situation is not urgently addressed, there is a real risk that the temporary closure will result in the permanent closure or relocation of our sector outside of Europe, ”said Jacob Hansen, CEO of Fertilizers Europe

Hansen explained that “rising energy prices lead to reduced fertilizer production, increased production costs for farmers and, in turn, a jump in food prices. But fertilizer production isn't just food for plants. Our industry is also a key supplier of AdBlue for heavy vehicles, CO₂ for the meat and beverage industry.”