After several years of delays, the Russian government finally began the process of issuing carbon credits to Joint Implementation projects this year. Now, Russian steel plants which have reduced their emissions canearn credits, while European steelmakers have access to a new source of offset credits for the emissions trading system.
SBB 3 November 2010 Eight Russian projects which have reduced greenhouse gas emissions in the iron and steel industry are among a total of 58 projects which have taken part in the second round of applications for carbon credits from Russia’s Sberbank, Steel Business Briefing learns.
Sberbank is offering a total of 30m Emissions Reduction Units (ERUs), worth more than $553m (€394m) according to a recent European auction, to projects which have successfully reduced emissions as part of the UN Joint Implementation programme. The state-owned bank should decide on which projects receive ERUs in this round by 22 November, SBB understands.
The largest project on the list is Magnitogorsk Iron & Steel’s (MMK) switch from open-hearth furnaces to electric arc furnaces and installation of continuous slab casters. It is asking for 7m credits to represent the 7m tonnes of CO2 equivalent emissions it has saved since the start of 2008.
In addition to six projects to upgrade or improve the efficiency of iron and steel production and rolling, Air Liquide-Severstal, which provides oxygen to Severstal’s basic oxygen furnaces, also applied. In total the eight projects asked for more than 20m ERUs.
In the first round of applications Evraz was granted the right to 2.12m ERUs, while Metalloinvest was granted 3.2m. They should receive the credits by the end of the year, SBB understands.
ERU futures and options contracts will begin trading on the London-based European Climate Exchange (ECX) on 8 November, SBB notes.