Microsoft Word - Nitric Acid Executive summary MLAK.docx

This executive summary of a Stockholm Environment Institute working paper evaluates nitrous oxide (N2O) abatement projects at nitric acid plants under the Clean Development Mechanism (CDM). The study concludes that while the CDM has successfully driven innovation and emission reductions in a sector that previously lacked abatement practices, the current methodologies are overly complex and may inadvertently reward high-emitting plants. The authors recommend transitioning to a benchmark factor for baseline emissions to simplify processes and enhance environmental integrity.

• The CDM has been effective in promoting technology development and N2O abatement in the nitric acid industry, which had almost no prior history of such practices outside of a few European pilot projects. This support led to the implementation of new monitoring standards and abatement technologies in 63 plants across 11 Non-Annex-1 countries.
• The risk of carbon leakage for nitric acid projects is judged to be limited at current Certified Emission Reduction (CER) prices, largely because these plants are often operated and sell their products locally. This contrasts with adipic acid projects, where higher profit margins from CERs create a more considerable risk of production shifting from non-CDM to CDM plants.
• Current CDM methodologies (AM0028 and AM0034) are complex and lead to significant delays in credit issuance; over 60% of monitoring reports are still awaiting issuance, and only half of the 50 projects that submitted reports have received credits. Furthermore, the current approach may be counter-productive as plants with higher baseline emissions can generate more credits than well-managed, lower-emitting plants.
• The study found no evidence of systematic baseline manipulation by project developers to maximize credits, concluding that the incentives for such gaming are limited.
• To address methodological flaws and issuance delays, the authors recommend introducing a benchmark factor for baseline emissions for all nitric acid CDM projects. Based on IPCC factors and EU benchmarks, they suggest a suitable rate between 4 to 5 kg N2O per tonne of nitric acid, which should decrease over time to account for technological progress.

APA

Stockholm Environment Institute (n.d.). Microsoft Word - Nitric Acid Executive summary MLAK.docx. https://www.sei.org/mediamanager/documents/Publications/Climate/sei-nitricacid-summary-2010.pdf

Chicago

Stockholm Environment Institute. Microsoft Word - Nitric Acid Executive summary MLAK.docx. n.d. https://www.sei.org/mediamanager/documents/Publications/Climate/sei-nitricacid-summary-2010.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Microsoft Word - Nitric Acid Executive summary MLAK.docx |url=https://www.sei.org/mediamanager/documents/Publications/Climate/sei-nitricacid-summary-2010.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitutendmicrosoft, author = {{Stockholm Environment Institute}}, title = {{Microsoft Word - Nitric Acid Executive summary MLAK.docx}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/sei-nitricacid-summary-2010.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }