Focus on climate projects
The working group on the implementation of ESG principles in Metafrax Group considered the preparation of the Group's enterprises for the introduction of new environmental reporting requirements in Russia.
The Law No. 296-FZ of July 2, 2021 “On Limiting Greenhouse Gas Emissions” came into force on December 30, 2021, explained Mrs. Elena Chistyakova, Head of the Environmental Protection Department of PJSC Metafrax Chemicals. This legal act defines the concepts of "carbon unit", "regulated entity", introduces a reporting system on greenhouse gas emissions and also delimits the powers of authorities in this area.
According to the federal law, the regulated entities, namely, the enterprises, whose operation is accompanied by greenhouse gas emissions with the mass equivalent to 150 or more thousand tons of carbon dioxide per year, shall provide emission reports starting from January 1, 2023. Regulations on regulated entities will be applicable to the production sites of Metafrax Group.
As a result of the discussion, the working group came to the conclusion that it is necessary to plan in advance the work on the inventory of greenhouse gas emissions by 2023. The meeting participants also considered the implementation of climate projects, which is foreseen by the new federal law. By the implementation of such projects a special report will be issued, which can be considered as the basis for the issuance of carbon units - a new type of investment asset.
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"Green" projects of "Metafrax Group" are key ones in the investment portfolio of the Group. They are divided into three interrelated groups.
The first group is aimed at reducing the negative impact on the environment and provides for the development and implementation of solutions aimed at reducing emissions and production wastes. This is, for example, the construction of a thermal treatment unit for industrial waste water, which will ensure the collection, intake and neutralization of wastewater from three production facilities of Metafrax Chemicals, both operating and being under construction. Also, such projects include the construction of a modern wastewater treatment unit at Metafrax.
The second group of "green projects" is aimed at creating new closed-cycle production facilities with minimal emissions and the most modern and reliable equipment. First of all we mean the project of the Group for the construction of the Ammonia-Urea-Melamine (AUM) Complex. As part of this project, the Russia's largest carbon dioxide recovery unit will be put into operation. The start up of the unit will eliminate the daily release of 1,120 tons of carbon dioxide into the atmosphere. CO2 emissions from Metafrax's production facilities will be reduced more than a halve.
The third group of projects involves the creation of a portfolio of "green" products from biodegradable natural raw materials. Ecological production methods and safe solutions with reduced content of harmful components are key requirements in the selection of such projects.
The environmental program of Metafrax Group is designed for 3 years and provides for more than 5 billion rubles of investments. In 2021, the volume of investments to fixed capital for environmental protection and rational use of natural resources exceeded 294.8 million rubles.