The long-term objective of the initiative is to incentivise the installation of effective N2O abatement technology in every nitric acid plant worldwide. NACAG’s vision is for the N2O emissions of an entire industrial sector to be mitigated on a global scale. The NACAG was launched by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) in order to increase pre-2020 mitigation. Considering technical and economic aspects, GHG abatement in the nitric acid sector is generally easy to implement and can be done at relatively low cost. This is the reason why this sector was chosen in the first place.
The NACAG initiative offers financial and technical support to individual nitric acid plant operators until the end of 2020. While the technical support is available to all governments and nitric acid producers worldwide, the financial support is bound to the condition that the government of the country in which the plant is located commits to sustaining the emission abatement from year 2021 onwards. This support covers not only the procurement and installation of the abatement technology and monitoring equipment required, but also any necessary plant modifications and labour costs related to monitoring and maintenance.
First, the host country joins the Initiative by signing a declaration of support. After this, the applicant submits an application for the financing program, which is then assessed by GIZ. GIZ will then conduct a due diligence assessment of the nitric acid plant in question, and, once this has been passed, negotiate the contract with the applicant. Before the final contract is signed, and as a condition for this to be possible, the host country needs to commit itself to designing and implementing appropriate policies, which ensure sustained mitigation of N2O emissions after 2020. This is done by signing a Statement of Undertaking. After signing the contract, the public tender procedure for procuring the mitigation technology and monitoring equipment starts and the installation of the technology begins.
EUR 50.7 million; Additional funds may be collected from future international partners willing to financially support the initiative by placing donations.
The Grant Application Programme is open and runs until 31 December 2020.