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This research paper evaluates the environmental integrity of nitric acid projects under the Clean Development Mechanism (CDM), specifically examining risks of carbon leakage and baseline emission manipulation. The authors conclude that while the CDM successfully fostered abatement in a sector that previously lacked such practices, the current methodologies are complex and lead to significant credit issuance delays. The paper recommends transitioning to a common benchmarking approach for baseline emissions to simplify the process and safeguard against leakage.

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.