ERM launches decarbonisation roadmap for fertiliser industry

Global fertiliser industry publishes science-based emissions reduction plan

The phosphate and potash fertiliser industry has published a comprehensive decarbonisation roadmap that sets out how producers can cut emissions while maintaining food security and supply stability. Developed by Environmental Resources Management for the European Bank for Reconstruction and Development and the International Fertilizer Association, the plan addresses greenhouse gas emissions across the entire value chain.

This matters because phosphate and potash fertilisers underpin global food production. However, their manufacture generates substantial process and energy emissions. For UK businesses that use, trade, or rely on these materials, the roadmap signals coming changes in production costs, supply chain carbon intensity, and procurement standards.

The roadmap arrives as agricultural supply chains face mounting pressure to decarbonise. Consequently, businesses in food manufacturing, agriculture, and related sectors need to understand how fertiliser emissions will affect their own carbon footprints and compliance obligations.

What the roadmap covers and recommends

The plan examines emissions from raw material extraction through to agricultural application. It identifies four core elements required for long-term decarbonisation while keeping fertiliser supplies affordable and secure.

First, the industry must shift to low-carbon energy. This means replacing fossil-based electricity and steam with renewable power, using purchase agreements where needed, and deploying low-carbon heat sources. Carbon capture and biofuels will support this transition where technically viable.

Second, carbon capture and electrification can tackle process emissions. Phosphoric acid production generates complex emissions that conventional energy switching cannot address. Therefore, targeted carbon capture systems and electrified processes will be necessary to reduce these releases.

Third, improving nutrient use efficiency represents the main downstream opportunity. Precision agriculture, enhanced-efficiency fertilisers, and the 4R framework (applying the right nutrient source at the right rate, time, and place) can cut emissions without reducing crop yields. These practices also reduce fertiliser waste and environmental runoff.

Fourth, producers should explore non-sulphur production routes. Alternative manufacturing pathways can reduce dependence on traditional processes. Moreover, they offer strategic flexibility as battery industries compete for the same raw materials and geopolitical tensions disrupt conventional supply routes.

The roadmap emphasises near-term actions that deliver immediate emissions cuts while preserving options for future technologies. Energy efficiency improvements, heat recovery systems, renewable electricity procurement, and mining equipment decarbonisation can all begin now without waiting for breakthrough innovations.

Who developed the plan and how

The European Bank for Reconstruction and Development and the International Fertilizer Association commissioned the work. Environmental Resources Management, which describes itself as the world’s largest specialist sustainability consultancy, led the technical development. Systemiq provided additional support.

The development process involved extensive industry consultation. Workshops, surveys, advisory reviews, and global stakeholder sessions helped build sector-wide consensus on practical decarbonisation pathways. This collaborative approach aimed to ensure the recommendations reflect real operational constraints and regional variations in production methods.

The roadmap builds on earlier work by the International Energy Agency, which published guidance for the broader fertiliser industry in 2019. That partnership between the International Fertilizer Association, the International Energy Agency, and the European Bank for Reconstruction and Development established the foundation for sector-specific plans like this phosphate and potash roadmap.

Environmental Resources Management’s scope included analysing global markets, assessing carbon emissions across Scopes 1, 2, and 3, and developing policy and technology deployment actions toward net-zero emissions. This comprehensive assessment provides producers, investors, and policymakers with a shared understanding of reduction opportunities and implementation barriers.

Commercial implications for UK businesses

UK businesses will feel these changes through multiple channels. Food manufacturers, agricultural suppliers, and companies with farming operations in their supply chains all use phosphate and potash fertilisers directly or indirectly. As producers implement decarbonisation measures, several commercial consequences follow.

Production costs will likely rise. Renewable energy procurement, carbon capture installation, and process electrification require capital investment. Producers will pass at least some of these costs through supply chains. Therefore, businesses should anticipate price increases for phosphate and potash products over the coming years.

Supply chain carbon intensity will change measurably. Companies reporting Scope 3 emissions must account for emissions embedded in purchased goods. Fertiliser manufacturing generates substantial greenhouse gases, particularly from chemical processes and energy use. As producers decarbonise, the carbon intensity of these materials will fall, improving downstream carbon footprints.

This creates both opportunities and risks. Businesses that source lower-carbon fertilisers can demonstrate supply chain progress and potentially meet tightening procurement standards. However, companies locked into high-carbon supply routes may face competitive disadvantages as buyers prioritise lower-emission materials.

Procurement standards will tighten further. Public sector buyers already apply carbon reduction criteria through frameworks like Procurement Policy Note 06/21. Private sector buyers increasingly demand supply chain decarbonisation data. Fertiliser emissions represent a material component of agricultural carbon footprints, so expect buyers to scrutinise these figures more closely.

Regional supply patterns may shift. If certain production regions decarbonise faster than others, businesses might change sourcing strategies to access lower-carbon materials. Alternatively, carbon border adjustment mechanisms could make high-carbon imports less competitive. Either way, established supply relationships may need review.

Agricultural businesses face specific considerations. Farms using precision agriculture and enhanced-efficiency fertilisers can reduce both emissions and input costs. The 4R framework improves nutrient uptake, which means less fertiliser achieves the same yields. This delivers financial and environmental benefits simultaneously, particularly valuable as fertiliser prices rise.

Investment in soil testing, application equipment, and agronomic advice pays for itself through reduced waste and improved crop performance. However, smaller farms may struggle with upfront costs, creating potential competitive gaps within the sector.

Essential facts about the decarbonisation roadmap

• Environmental Resources Management developed the roadmap for the European Bank for Reconstruction and Development and the International Fertilizer Association, covering the global phosphate and potash industries.
• The plan addresses emissions across the full value chain, from raw material extraction through production, transport, and agricultural use.
• Four core elements underpin the transition: low-carbon energy systems, carbon capture with electrification for process emissions, improved nutrient use efficiency downstream, and alternative non-sulphur production pathways.
• Near-term actions include energy efficiency improvements, renewable electricity procurement, heat recovery, and mining equipment decarbonisation.
• The roadmap complements regional initiatives such as Fertilizers Europe’s 2050 climate neutrality target and country-specific plans like Egypt’s nitrogen fertiliser industry vision.
• Businesses using phosphate and potash fertilisers should expect rising costs, changing supply chain carbon intensity, and tighter procurement standards as producers implement these measures.

How businesses should approach fertiliser supply chain emissions

UK companies need to understand their exposure to fertiliser emissions. Start by identifying where phosphate and potash materials enter your supply chain. Food manufacturers might use them indirectly through agricultural ingredients. Agricultural suppliers sell them directly to farms. Either way, these emissions likely contribute to your Scope 3 footprint.

Quantify the carbon intensity of your current fertiliser supplies. Ask suppliers for product-specific emissions data covering Scopes 1, 2, and 3. Many producers now publish this information, though data quality varies. Where specific data remains unavailable, industry average figures provide a starting point for baseline assessment.

Engage suppliers on their decarbonisation plans. Producers implementing the roadmap’s recommendations will achieve measurable emissions reductions over time. Understanding their timelines and reduction targets helps you forecast your own supply chain improvements and set credible reduction commitments.

Consider how changes affect procurement criteria. If you supply the public sector, carbon reduction requirements for public sector suppliers already apply. Private sector buyers increasingly adopt similar standards. Sourcing lower-carbon fertilisers strengthens your competitive position in tender processes.

Farms and agricultural businesses should evaluate precision agriculture investments. The 4R framework and enhanced-efficiency fertilisers deliver immediate benefits without waiting for upstream production changes. Equipment upgrades, soil testing, and agronomic advice require upfront spending but typically achieve payback through reduced fertiliser use.

Monitor regulatory developments closely. Carbon pricing mechanisms, border adjustments, and reporting requirements will affect fertiliser markets. Early awareness lets you adapt sourcing strategies and avoid compliance surprises. Regulations may also create incentives for lower-carbon products, making early adoption financially attractive.

Review your carbon reporting obligations under PPN 06/21 if you supply the public sector. Fertiliser emissions may represent a material component of your reported footprint. Accurate measurement and reduction planning demonstrate compliance and competitive capability.

Build flexibility into supply contracts. As production patterns shift and regional decarbonisation rates vary, you may need to adjust sourcing locations or suppliers. Contract terms that allow periodic review of carbon intensity requirements help you maintain progress without costly renegotiations.

Fertiliser decarbonisation represents a multi-year transition. Businesses that understand the changes, engage suppliers early, and adapt procurement strategies will manage costs more effectively and maintain competitive advantages in carbon-conscious markets.

Where to find detailed technical guidance

The International Energy Agency publishes sector-specific energy transition analysis, including fertiliser industry pathways. Their reports provide technical detail on production processes, energy requirements, and decarbonisation technologies.

The International Fertilizer Association represents producers globally and publishes industry sustainability initiatives, best practice guidance, and emissions reporting frameworks. Their resources explain fertiliser production processes and environmental management approaches.

The European Bank for Reconstruction and Development funds industrial decarbonisation projects and publishes investment criteria, feasibility studies, and technology assessments relevant to manufacturing emissions reduction.

For UK-specific agricultural emissions guidance, the Agriculture and Horticulture Development Board provides practical resources on nutrient management, soil health, and farm-level emissions reduction. Their tools help agricultural businesses implement the 4R framework and assess fertiliser efficiency.

Businesses requiring support with supply chain carbon measurement, procurement standard compliance, or sustainability strategy development can access sustainable procurement guidance and supply chain assessment services tailored to UK commercial requirements.