For now, Ukraine seems to be running ahead of Russia in the JI metcoal, iron and steel sectors. But plenty of scope for Russia to catch up.
SBB 6 August 2010 Ukrainian coking coal producer, Krasnodonugol, part of the Metinvest group, has sold its first batch of Emission Reduction Units (ERUs) for €598,000 ($788,000). The buyer was Dutch bank, ING, Steel Business Briefing understands.
ERUs are granted under the Kyoto protocol to projects which reduce greenhouse gas emissions. One ERU is granted for a reduction equivalent to one tonne of carbon dioxide.
Krasnodonugol has reduced methane emissions from its Sukhodilska-Skhidna mine, one of seven it operates in the Luhansk region, by using it as a fuel for the boilers which are used to heat the mine and provide hot water. In total the project hopes to reduce emissions by 308,132t CO2-equivalent over 2008-2012.
The first batch of credits was received once emissions reductions for the period 2006-2008 were confirmed. The project still qualifies for further allocations for emissions reductions during 2009-2012.
Krasnodonugol is also undertaking a similar project at its Sukhodolska-Vostochnaya coal mine. It expects this to be operational by Q4 this year. Though this project has yet to be approved for under the Joint Implementation programme, the company hopes to achieve emissions reductions of some 200,000-250,000 tonnes CO2-equivalent from this project.
Ukraine is also host to a number of Joint Implementation projects related to the steel industry. These include three projects at Industrial Union of Donbass’s Alchevsk steel plant which have combined potential emission reductions of over 4.5m t CO2-equivalent, SBB notes.