Financial Support

NACAG is offering financial support to reduce nitrous oxide emissions from nitric acid and caprolactam plants in countries that are eligible for Official Development Assistance (ODA). NACAG supports already existing abatement projects through measures which are aimed at ensuring continuous abatement and increasing the abatement efficiency. The initiative provides financial support to individual nitric acid plant operators for their abatement activities on the condition that the country in which the plant is located is committed to sustaining the emission abatement in the future. This commitment should take the form of a formal Statement of Undertaking signed by the government. In the Statement of Undertaking, the government commits to ensuring that all nitric acid or caprolactam production facilities in the country are equipped with state-of-the-art technology to abate N2O emissions from their production cycles on a long-term basis.

NACAG is supporting new abatement projects by covering up to 100% of the costs associated with the purchase and installation of the abatement and monitoring technology. Nitric acid or caprolactam plant operators from eligible countries can apply for financial support, which effectively takes the form of grants. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is the executive development cooperation agency of this funding stream and acts as the grant managing and contracting authority.

The Grant Application Programme is open. The Grant Application Notice can be downloaded here. Eligible grant applications qualify for due diligence assessment as well as intervention advice. In the due diligence assessment framework, GIZ will evaluate applicants‘ technical, legal, financial and operational capacity and the existence of environmental, social, health and gender safeguards and sufficient policy guarantees. In case of a positive outcome of the due diligence assessment, GIZ will adopt a grant award decision and issue a grant agreement for signature to the plant operator.

The activities eligible for funding from the NACAG are the following:

  • Purchase, shipping, installation and maintenance of a technical device or technology that either remove N2O (i) through the installation of a secondary N2O destruction catalyst in the oxidation reactor („secondary abatement “) or (ii) from the tail gas through either thermal destruction or catalytic decomposition („tertiary abatement“);
  • Purchase, shipping, and installation of monitoring equipment;
  • Administrative overheads.

Upon the signature of the grant agreement, plant operators will choose specific abatement technology through competitive tendering. The NACAG Secretariat offers advisory services regarding technology selection. From the beginning, it remains technology-neutral and supports the most suitable technology based on the specific technical and economic circumstances of each nitric acid production facility. Further information on cooperation with political and private sector partners can be found under Working with NACAG.

PDF Downloads

Statement of Undertaking

By signing this document, governments commit themselves to phasing out nitrous oxide emissions from nitric acid production.
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Grant Application Notice (EN)

In order to be eligible for financial support from the NACAG Support Facility, plant operators have to fill in and sign the Grant Application Notice. The notice includes information on eligibility criteria and the application procedure. In addition, its annexes contain the actual application form, the Declaration of Honor and the Declaration on Climatic Benefits.
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