Today, Hydrogen Council, together with Business for CBAM Coalition, European Industrial Gases Association (EIGA), Hydrogen Europe, IFIEC Europe, and Renewable Hydrogen Coalition, representing industrial leaders investing in clean hydrogen, ammonia, steel and fertilizers, in and beyond the EU, joins the industry-wide call to remove the proposed Article 27a from the CBAM revision.

In a letter to European Parliament’s Committee on Environment, we explain why Article 27a would undermine market confidence and deter urgently needed investment in decarbonisation across CBAM sectors.

Why this matters now
 Policy certainty: CBAM was designed to provide long-term investment certainty for clean energy, industrial and agrifood systems in Europe and beyond.
 Market functioning: Article 27a introduces open-ended uncertainty that is already disrupting fertilizer markets and delaying contract formation.
 Investment viability and capital allocation: Unclear future CBAM exposure makes it impossible to price assets with 15-30-year lifetimes. Reduced predictability undermines Europe’s attractiveness for investment in renewable and low-carbon ammonia and fertilizers.

What’s at risk
 Food security: Continued dependence on Russia accounting for ~30% of EU nitrogen fertilizer imports.
 Affordability: Increased exposure to fossil fuel price volatility across the agrifood value chain.
 Supply diversification: Halted investment in clean diversified supply both within and outside the EU.

CBAM was designed to support climate ambition and competitiveness. Article 27a risks doing the opposite, creating uncertainty for first movers and disincentivising carbon pricing globally.

We call on EU decision-makers to remove Article 27a and preserve a CBAM framework that is clear, durable and fit for purpose.

Read the full letter here.