Nornickel has signed a landmark agreement with RusHydro to purchase 10,000 carbon units, representing the largest transaction in Russia's emerging carbon market to date, the miner said in a statement.
The carbon units were generated as a result of converting Vladivostok Thermal Power Plant No. 2 from coal to natural gas. This transition significantly reduced carbon emissions from the plant, and the results were officially verified in 2023, Nornickel said. The Carbon Units Registry, which tracks such transactions, credited the resulting carbon units to RusHydro’s account. Nornickel has now purchased these credits, which have been transferred to its account in the registry. The company can use these units to offset its gross greenhouse gas emissions and potentially reduce future liabilities related to carbon taxes.
As one of the world’s largest producers of base and precious metals, Nornickel is actively working to lower its environmental impact, the miner claims. The company has committed to a long-term climate strategy aimed at reducing its carbon footprint. Currently, Nornickel emits 9.7 million tons of greenhouse gases annually under Scope 1 and 2 emissions. The company’s nickel production is particularly efficient, with a carbon footprint of just 8.5 kg of CO₂ equivalent per kilogram of metal—a figure among the lowest in the global non-ferrous metals industry.
RusHydro, Russia's largest power generation company, operates key hydroelectric plants and can generate more than 38.5 gigawatts of electricity. The sale of carbon units is part of RusHydro’s broader strategy to monetize its emissions reductions and offer these credits to businesses looking to offset their own environmental impact.
This deal is a notable step for Nornickel in implementing its climate strategy. By purchasing and potentially retiring these carbon units, the company can reduce its net carbon emissions, ensuring it remains competitive in a global market that increasingly prioritizes sustainability. Additionally, this move may help Nornickel mitigate the financial impact of potential future carbon taxes, especially as regulations around carbon emissions become stricter.