European farmers are facing a confluence of challenges – rising energy costs, geopolitical instability, and soaring fertilizer prices – that threaten food security and agricultural livelihoods. Italy is leading a push within the European Union to promote a readily available, sustainable alternative: digestate, a byproduct of anaerobic digestion. A recently presented document to the Agrifish council outlines a strategy to increase the use of digestate across Europe, potentially reducing reliance on increasingly expensive and volatile synthetic fertilizers.
The crisis stems from multiple factors. Russia’s invasion of Ukraine has dramatically reshaped European energy markets, reducing dependence on Russian gas but simultaneously driving up costs. Tensions in the Middle East, particularly around the Strait of Hormuz – a critical transit point for roughly 33% of the world’s fertilizer supply – add further uncertainty. These disruptions have a direct impact on fertilizer production, which is energy-intensive, with natural gas accounting for 60% to 80% of production costs. In March 2026, urea prices reached a high of 765 euros per ton, a 55% increase compared to the same period in 2025, according to data cited in the Italian proposal.
Compounding the issue, the EU has become a net importer of fertilizers, heavily reliant on nitrogen-based products. Imports exceeded 4 billion euros in 2025, a 30% increase in volume. The implementation of the Carbon Border Adjustment Mechanism (CBAM), linked to the EU Emissions Trading System (ETS), has further increased costs for imported fertilizers, impacting their competitiveness. This has led to reduced fertilizer purchases by farmers, raising concerns about potential yield declines, reduced farm incomes, and increased vulnerability in Europe’s food supply. The situation demands innovative solutions, and Italy believes digestate offers a viable path forward.
Digestate: A Circular Economy Solution
Digestate is produced through anaerobic digestion, a process that breaks down organic matter – such as manure, crop residues, and food waste – in the absence of oxygen. The resulting product is a nutrient-rich substance that can be used as a fertilizer. Italy’s proposal highlights the significant potential of digestate to reduce costs, maintain agricultural yields, and bolster the EU’s strategic autonomy. The EU currently generates approximately 1.6 billion tons of organic compounds annually, with 61% originating from livestock manure, 25% from crop residues, and the remainder from industrial and urban waste. This represents a substantial, largely untapped resource for digestate production.
Using digestate can significantly lower fertilization costs, potentially replacing synthetic fertilizers entirely in some contexts. Agronomically, it improves soil fertility by adding organic matter, increasing carbon content by 0.5 to 1 ton per hectare per year. Environmentally, it reduces greenhouse gas emissions – up to 840 kg of CO₂ equivalent per hectare – and minimizes ammonia volatilization and eutrophication. Crucially, digestate aligns with the principles of a circular economy, valorizing waste products and integrating with renewable energy production from biogas and biomethane.
Regulatory Hurdles and Proposed Changes
Despite its benefits, the widespread adoption of digestate is currently hampered by regulatory constraints, specifically within the framework of the EU Nitrates Directive (91/676/CEE). The directive does not adequately differentiate between raw livestock manure and digestate, despite the significant differences in their chemical and physical properties resulting from the digestion process. This lack of distinction is seen as inconsistent with technological advancements and the EU’s sustainability goals.
Italy is advocating for a revision of the Nitrates Directive to formally recognize digestate as a distinct product, with regulations tailored to its specific characteristics. A key recommendation is to equate digestate with synthetic fertilizers in terms of application limits, allowing for broader and more consistent use. This would require a reassessment of existing rules governing nutrient application rates and potentially necessitate adjustments to monitoring and reporting requirements.
Supporting Infrastructure and Future Steps
Beyond regulatory changes, the Italian proposal emphasizes the need for increased investment in anaerobic digestion infrastructure across Europe. This includes supporting the development of new plants and upgrading existing facilities to maximize digestate production. Promoting the economic viability of digestate production and use is also crucial, potentially through financial incentives, research and development funding, and the establishment of quality standards.
The document presented to Agrifish underscores the urgency of addressing the fertilizer crisis and highlights digestate as a practical, sustainable solution. The European Commission is expected to consider the Italian proposal in the coming months, with potential revisions to the Nitrates Directive under discussion. The outcome of these deliberations will have significant implications for the future of European agriculture and the EU’s ability to ensure food security in a changing world.
The next key step will be the European Commission’s response to the Italian proposal, anticipated by the end of the year. Further updates and discussions are expected during subsequent Agrifish council meetings. This is a developing story with significant implications for the future of sustainable agriculture in Europe.
What are your thoughts on the potential of digestate to address the fertilizer crisis? Share your comments below and help us continue the conversation.
