European authorities consider that N2O emissions from nitric acid plants can be reduced to a large extent at a relatively low cost. Two regulation approaches can have major implications for the fertilizer industry in Europe. The EU integrated pollution prevention and control (IPPC) directive will be effective from October 2007 for existing plants. In this, emission permits will be based on best available techniques (BAT). Additionally, the EU commission will shortly consider whether the emission trading directive should be applicable to cover other greenhouse gases besides CO2. This paper discusses advantages and drawbacks of these approaches, with emphasis on how emission trading with N2O can be turned into a win-win situation both for European governments and for the fertilizer industry. (c) 2006 Elsevier B.V. All rights reserved.