02/03/2025

Growing Progress in Decarbonizing Nitric Acid Production

A complex industrial structure at night, with various pipes and metal platforms visible. Steam rising from the factory contrasts against the dark sky. The image highlights the detailed architecture of a fertilizer production facility.

The aim of the Nitric Acid Climate Action Group (NACAG), funded by the International Climate Initiative (IKI), is to create incentives for the permanent reduction of nitrous oxide emissions. NACAG has achieved a number of successes in recent months.

Increasing Political Commitment

In 2024, Pakistan joined the IKI-funded NACAG initiative, becoming the 11th participating country. The Ministry of Climate Change and Environmental Coordination in Pakistan signed the Statement of Undertaking (SoU), pledging to achieve a permanent reduction of N₂O emissions in the country’s nitric acid sector.

Wolfgang Hesse, Coordinator for Energy, Climate Change, and Just Transition at GIZ-Pakistan, NACAG’s global implementing agency, reaffirmed the initiative’s dedication to providing the technical expertise and capacity building. He highlighted that Pakistan is expected to exceed its N₂O emission reduction targets under its Nationally Determined Contributions (NDC 2.0) by more than 200 per cent, thanks to NACAG's support.

By December 2024, eleven countries had signed the SoU, including Argentina, Colombia, Georgia, Jordan, Mexico, Pakistan, Peru, Thailand, Tunisia, Uzbekistan, and Zimbabwe. These countries are actively working to develop N₂O regulations to ensure permanent and sustainable reductions. Together, these countries have a total abatement potential of 4.5 million tonnes of CO₂ equivalent per year - equivalent to the annual emissions of around 430,000 people in Germany.

Private Sector Advancements in Decarbonization

The private sector is also making significant progress under NACAG. Fatima Fertilizer’s Multan Plant in Pakistan became eligible for financial support to install abatement technology and monitoring systems at its production facilities. Pakistan’s nitric acid sector alone has an estimated emission reduction potential of approximately 1.86 million tonnes of CO₂ equivalent per year, equivalent to nearly 770,496 round-trip flights between Islamabad and Berlin.

As of January 2025, eleven plant operators worldwide have signed financial contracts with NACAG, representing a total investment of €26.5 million. In many countries, industry is taking the initiative in climate policy efforts. For instance, nitric acid producers ENAEX in Peru and Fatima Group in Pakistan have independently installed N₂O abatement technologies. JSC "Rustavi Azot" in Georgia made significant investments in abatement technology.

In addition, plant operators in countries such as Georgia, Mexico, Zimbabwe, Thailand, and Tunisia have signed contracts for the procurement and installation of monitoring equipment.

NACAG continues to demonstrate that collaboration between governments and industry can drive significant progress in decarbonizing one of the world's most emission-intensive sectors. This highlights NACAG’s role as a coalition of climate policy frontrunners. The initiative brings together proactive countries and industries committed to cutting N₂O emissions, fostering international collaboration in pursuit of a sustainable future.

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Contact

IKI Office
Zukunft – Umwelt – Gesellschaft (ZUG) gGmbH
Stresemannstraße 69-71

10963 Berlin

iki-office@z-u-g.org

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