ClimeCo Champions Integrity in Adipic Acid Protocols for High‑Impact Climate Action

In a pivotal step toward tackling greenhouse gas emissions, ClimeCo has supported the approval of the Climate Action Reserve’s (CAR) US and China Adipic Acid Production Protocols, recently earning the prestigious Core Carbon Principles (CCP) label from the Integrity Council for the Voluntary Carbon Market.

This milestone, announced on MyChesco, is set to transform the industrial chemicals market, particularly for adipic acid production—a process emitting approximately 142 million tonnes of CO₂ equivalent (Mt CO₂eq) in nitrous oxide (N₂O) annually, with China responsible for 94% of this total, according to a 2023 Global Efficiency Intelligence report. Let’s explore why this matters and its implications for the industry.

Why Adipic Acid Matters

Adipic acid is a critical component in manufacturing nylon 6,6, polyurethanes, and other industrial products. Global production is concentrated in 39 facilities, nearly two-thirds of which are in China and the U.S.

However, its production generates N₂O, a super-pollutant with a global warming potential 273 times greater than carbon dioxide (CO₂) and a contributor to ozone depletion (6% impact). In 2021, adipic acid production emitted 142 Mt CO₂eq, equivalent to 24% of non-CO₂ greenhouse gas emissions from key industrial processes.

The automotive industry, consuming 65% of nylon 6,6, embodies 74 Mt CO₂eq annually, with tires alone accounting for 15 Mt. Reducing N₂O emissions from adipic acid plants is a high-impact opportunity for climate action, and ClimeCo's expertise—boasting over 40 million tonnes of CO₂eq reductions in the U.S.—positions it as a leader in this space.

The Power of High-Integrity Protocols

The CAR’s US and China Adipic Acid Production Protocols provide a standardized, science-based framework for measuring and reducing N₂O emissions. Earning the CCP label signals that these protocols meet rigorous standards for transparency, environmental impact, and credibility. For the industrial chemicals market, this translates to:

• Credible Carbon Credits: Producers can generate high-integrity carbon credits by adopting N₂O abatement technologies, such as catalytic decomposition or thermal destruction. These technologies cost less than $0.50 per ton of CO₂eq abated for single systems and under $5 for dual systems. These credits can be sold in voluntary carbon markets, creating financial incentives for cleaner production and driving investment in innovative technologies.
• Enhanced Market Trust: The CCP label assures buyers that credits represent real, verified emissions reductions, boosting confidence in the voluntary carbon market and encouraging participation from chemical manufacturers.
• Global Influence: ClimeCo's expansion into three N₂O abatement projects in China, where 11 facilities lack consistent abatement, signals the protocols' potential to set global standards. With China dominating global production and emissions, these protocols could inspire similar frameworks worldwide.

Implications for the Industrial Chemicals Market

The approval of these protocols is a catalyst for transformation in the industrial chemicals sector. Here’s how:

1. Competitive Advantage: Companies adopting these protocols can enhance their reputation as sustainability leaders, gaining a competitive edge in a market increasingly driven by environmental accountability. For example, the automotive industry, which accounts for 74 Mt CO₂eq in embodied N₂O emissions, can reduce its Scope 3 footprint by demanding low-emission adipic acid, with abatement costs as low as $0.4 per vehicle or $0.012 per airbag.
2. Innovation and Investment: The financial incentives tied to carbon credits could spur research and development in N₂O abatement technologies, which are commercially mature and capable of reducing emissions by 90–99%. This could lead to more efficient and sustainable production processes across the 39 global facilities.
3. Regulatory Ripple Effects: The protocols’ focus on scientific integrity may pressure regulators to adopt similar standards, potentially influencing policies for other high-emission chemical processes.
4. Addressing Super-Pollutants: By targeting N₂O, these protocols set a precedent for tackling other high-impact industrial emissions. A 2023 study projects that widespread adoption of abatement technologies could slash adipic acid emissions by 90% by 2035 and 94% by 2050, aligning with the Paris Agreement 1.5°C goals.

Challenges and Considerations

While the protocols are a significant step, their impact hinges on widespread adoption, particularly in China, where some facilities have abatement technologies but do not operate them to cut costs. The voluntary carbon market has faced criticism for issues like credit quality and oversupply, which could dampen enthusiasm. Economic viability is key—producers in regions with less regulatory pressure may hesitate to invest in abatement technologies, costing $3.9 million for a 100 kt/yr plant, without clear financial returns. Finally, the focus on adipic acid shouldn’t overshadow other emission-intensive chemical processes that also demand attention.

Looking Ahead

ClimeCo’s support for the CAR Adipic Acid Protocols marks a pivotal moment for the industrial chemicals market. By enabling credible, scalable emissions reductions, these protocols address a critical environmental challenge while creating opportunities for innovation, investment, and global collaboration.

The automotive industry, a major consumer of adipic acid-derived products, can lead by demanding low-emission supply chains. Partnerships between manufacturers, policymakers, and organizations like ClimeCo can drive the industry toward net-zero N₂O emissions.

For adipic acid producers, the message is clear: embracing high-integrity protocols isn’t just about compliance—it’s about leading the charge toward a greener, more competitive market.