Chapter 3. Enabling more sustainable ammonia production

Chapter 3. Enabling more sustainable ammonia production

Highlights

•Governments, producers and other stakeholders have already begun taking action to reduce emissions from the ammonia industry. Some governments have adopted carbon pricing and are funding innovation, while producers have set emission reduction targets and are undertaking RD&D projects. Despite these efforts, emissions continue to rise, and greater ambition is needed.

•Governments have a central role to play. They will need to establish a policy environment supportive of ambitious emission cuts by creating transition plans underpinned by mandatory emission reduction policies and mechanisms to mobilise investment. Targeted policy is also required to address existing emissions-intensive assets, create markets for near-zero-emission products, accelerate RD&D and incentivise end-use efficiency for ammonia-based products. Governments should ensure that enabling conditions are in place, including a level playing field in the global market for low-emission products, infrastructure for hydrogen and CCS, and robust data on emissions.

•Ammonia producers will need to establish their own plans for the transition, for addressing existing capacity and deploying near-zero-emission technologies. Accelerating RD&D on near-zero-emission technologies will help lower costs and ensure the needed technologies are available in the market. Producers and industry associations should engage in initiatives to develop supporting infrastructure and improve data provision on emissions performance.

•Farmers and agronomists should prioritise best management practices for more efficient fertiliser use. The food industry can adopt purchasing practices supportive of low-emission production methods and inputs, based on taxonomies developed by the research community. Financial institutions should use sustainable investment schemes to direct resources towards emission reduction opportunities, while diverting investment from emissions-intensive assets that could become stranded. Non-governmental organisations can raise awareness of the benefits and requirements of near-zero-emission technologies.

•Time is of the essence. The next decade – from now to 2030 – is critical to lay the foundation for long-term success. Vital near-term actions include establishing strong supportive policy mechanisms, taking action on energy and use efficiency, developing supporting infrastructure, and accelerating RD&D.