Supporting the Nitric Acid Climate Action Group (NACAG)
As of: May 2021
During the production of nitric acid, large amounts of climate-damaging nitrous oxide (N2O) are released into the atmosphere. Although avoiding these emissions is technically relatively simple and comparatively inexpensive, most nitric acid plants are not equipped with the respective technology. NACAG's goal is to create incentives for the permanent reduction of nitrous oxide emissions. The global mitigation potential over the next ten years is well over one gigaton of CO2e. To this end, it provides both technical and political support: the initiative advises governments on the long-term regulation of these emissions and helps integrate the sector into Nationally Determined Contributions (NDCs). Besides, it finances the installation and operation of climate technology in eligible production facilities. Partner countries must provide a binding commitment to continue mitigation activities under their responsibility from 2024 onwards to qualify for funding.
State of implementation/results
- By signing the NACAG Declaration, Argentina, Colombia, Cuba, Georgia, Federation of Bosnia and Herzegovina, Indonesia, Jordan, Mexico, Pakistan, Thailand, Tunisia, Uzbekistan, Zimbabwe, and Vietnam have formally expressed their interest in a cooperation.
- After the signing of a Statement of Undertaking (SoU) by the responsible minister, NACAG prepares grant agreements to purchase and install effective mitigation technology. The SoU entails that governments commit to introduce appropriate regulations and ensure that sectoral emissions remain low. So far, the SoU has been signed by Mexico, Georgia, Thailand, Tunisia, Uzbekistan and Zimbabwe. The mitigation potential in these countries is around 2,8 million tCO2e annually.
- Numerous plant operators have already applied for funding to install abatement technology through NACAG, which shows the private sector´s support for the initiative.
- Countries, which are ineligible for financial support and industry associations are also in dialogue with NACAG regarding the mitigation of N2O emissions.
- There is also an intensive exchange with China, although no direct financial support can be given.
- The auction programme, which is being implemented in cooperation with the World Bank, attracts great interest, especially from the private sector.
- The website (www.nitricacidaction.org) and short film on the initiative are constantly updated.