Partner and interested nitric acid producers
Why working with NACAG
To stop global warming and comply with international agreements such as the Paris Agreement, national governments must increase their climate ambitions, for example, by introducing obligatory standards or policy regulations in different industrial sectors.
In addition to the introduction of national regulations, the global trend towards climate-friendly transformation will continue to affect global trade. Governments and international entities, for example, the European Union, demonstrate a strong tendency to cooperate and trade with partners that contribute to the Paris Agreement targets and lower their emissions.
For instance, after the possible introduction of the Carbon Border Adjustment Mechanism according to the current plans of the EU Commission, companies importing nitric acid to the EU will have to pay a carbon adjustment (additional tax) on the imported goods. However, if they can prove mitigation of nitrous oxide emissions, they will be partially or fully exempted from such payment.
In addition, in comparison to emissions from other sectors, nitrous oxide emissions from nitric acid production might be emitted at a relatively low cost ranging from as low as €0.50 to €5.00/tCO2eq.
To qualify for funding, the country’s government, where the nitric acid plant is located, has to sign the Statement of Undertaking, committing to long-term emission reduction. Following this step, NACAG signs a grant agreement with the partner plant and finances procurement and installation of abatement and monitoring equipment.
NACAG advises plant operators on technical solutions for emissions reduction best suitable for each production facility. To this end, its experts conduct pre-feasibility studies outlining all possible technical solutions with their advantages and disadvantages.
To sign the grant agreement (financing contract), the partner company will undergo a due diligence procedure – assessment of technical, legal, financial and operational capacities covering environmental, social, health and gender aspects. While serving as a means for safeguarding the financial involvement of GIZ, this procedure identifies potential risks of possible cooperation on the one hand and, on the other hand, presents an opportunity for providing capacity-building services to the partner plants. NACAG partner nitric acid producers that have undergone this procedure report their positive experience and valuable output from the due diligence. For instance, the NACAG’s partner plant in Mexico used it as a chance to improve internal practices by getting the perspective of leading international consultancies and learning from it.