This thesis explores sustainable and economically viable decarbonization pathways for the European ammonia industry. Through literature reviews, expert interviews, and detailed analyses, it addresses the industry's need to transition while maintaining competitiveness. Findings suggest that options like Autothermal Reforming (ATR) with Carbon Capture and Storage (CCS) are financially feasible, while biobased alternatives and electrolyzers face cost challenges but hold future potential. The study emphasizes the impact of the Carbon Border Adjustment Mechanism (CBAM) on global decarbonization efforts, reshaping trade dynamics. Policymakers must consider potential industry relocation and ensure food security amidst changing landscapes. Overall, this research provides a roadmap for sustainable decarbonization and underscores the importance of collaborative efforts for the European ammonia industry's future.