The Ukrainian steelmaker Azovstal, a subsidiary of the Ukrainian iron ore and steel producing company Metinvest Holding, has announced that by 2012 it will reduce its emissions of greenhouse gases by 1.5 million tons (CO2 equivalent), as it has signed a contract for developing and supporting a joint implementation plan with Global Carbon, a leading expert on environmental consultancy and financial brokerage services in the international emissions trading market under the Kyoto Protocol.
The contract provides for service assistance in implementation of the Kyoto Protocol mechanisms, aimed towards the introduction of energy saving technologies, reduction of the plant's influence on the environment and increasing of energy effectiveness of equipment.
Azovstal has been executing the long-term program of modernization and reconstruction of its production facilities, while its investments in environmental protection account for 22 percent of its total investments. Specifically, the reconstruction of its blast furnace No.2 has allowed Azovstal to reduce its СО2 emissions by 200 tons per year, the commissioning of a new air separating unit VRU-60 gave another reduction of 50 tons per year, while the introduction of energy consumption monitoring and control system allowed the producer to reduce СО2 emissions by another 67 tons per year.
The implementation of Kyoto Protocol mechanisms is expected to help Azovstal to attract additional investments for its environmental programs. According to the contract, the money will be sourced from sales of emissions reduction units.
The contract outlines the long-term cooperation during the first reporting period of the Kyoto Protocol, .i.e. until 2012, and may be prolonged for the second reporting period, i.e. until 2020.
The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas emissions.