In December 2010, the EU Commission decided to apply a benchmark of 0.302 tonnes of CO2 equivalent per tonne of nitric acid to nitric acid plants under the EU ETS from 2013 onwards.
At first sight this seems like a straightforward decision but what does this mean in terms of N2O emissions at the plant? The international Panel on Climate Change (IPCC) changed the Global Warming Potential (GWP) of N2O from 310 to 298 as of 2013. Whether or not this will be applied in the EU as well is unclear and even the Commission could not provide clarity on this so far. As a result the 0.302 benchmark could translate into an effective cap of between 0.974kg (GWP 310) and 1.013kg (GWP 298) N2O per tonne of nitric acid. N.serve advised Fertiliser Europe (FE, former EFMA) with expertise and assessments on emission and emission reduction efficiency data from all existing CDM and JI projects. These data were vital in the work of FE with the European Commission DG Climate Action lobbying for realistic and feasible benchmarks for nitric acid plants in the EU ETS.
Most nitric acid plants in the EU are already running JI projects or are covered by the EU ETS via opt-in. In essence the same strict monitoring, reporting and auditing requirements that are necessary under JI now will continue to apply from 2013 onwards. However, some changes will apply and some aspects are still under discussion between the EC and the member states. It will be important to prepare for these requirements throughout 2012 in order for plant operators to avoid costly hiccups in 2013.