Russia has been quite slow to implement the Kyoto “Joint Implementation” JI mechanism: the Russian projects could start receiving credits from November, say reports. However, the approval process is believed to have started in 2008.
Steel Business Briefing 2 August 2010 The Russian government approved its first 15 carbon emissions reduction projects under the Joint Implementation (JI) mechanism on 23 July. While no list of projects has yet been officially published, they are believed to include projects at two steel works, Steel Business Briefing has learnt.
Emissions Reduction Units (ERUs) may be awarded retrospectively to Evraz’s Nizhny Tagil Iron & Steel Works (NTMK) for the reconstruction of its No.5 and No.6 blast furnaces, completed in 2006 and 2004 respectively.
ERUs could also be granted retrospectively to Ural Steel, a Metalloinvest subsidiary, for the refurbishment of two EAFs and the installation of a new continuous caster in 2007. They reduced the plant’s consumption of raw materials.
In total, the 15 projects could generate up to 30m ERUs worth some €345m ($450m) between now and 2012, an Economic Development Ministry official has said. UN figures suggest Russia is host to 103 projects, 61% of all JI projects, with the potential to earn €2.6bn in carbon credits.
Among the projects still to win approval are those of at least three other steel plants. Magnitogorsk Iron & Steel (MMK) and Mechel’s Chelyabinsk and Izhstal facilities have all previously said they will apply for credits under the JI mechanism.