Emissions controls worked perfectly at Chinese plants, until a foreign subsidy dried up.

The Henan Shenma Nylon Chemical Company in China. Credit: United Nations Clean Development Mechanism

BY Phil McKenna, Lili Pike, Katrina Northrop, Inside Climate News

In December 2007, Charles Perilloux, an American chemical engineer, traveled to China to help install inexpensive and game-changing technology at a Chinese chemical plant that was spewing a climate “super-pollutant” into the atmosphere. The emissions quickly fell to near zero. 

The state-owned Henan Shenma Nylon Chemical Company manufactures adipic acid, a key ingredient in nylon and polyurethane, which is used in everything from car parts to running shoes. While producing adipic acid, the factory emitted thousands of tons of nitrous oxide, a greenhouse gas nearly 300 times more potent than carbon dioxide in warming the planet.   

Shenma’s emission reductions had a greenhouse gas impact equivalent to taking one million cars off the road, records from the United Nations’ Clean Development Mechanism (CDM) show. Through the program, Shenma reduced its emissions in exchange for lucrative carbon credits. 

The plant’s abatement technology produced a financial windfall. Shenma, and another, larger, state-owned adipic acid plant that also reduced its emissions, sold carbon credits over a five-year period that were worth as much as $1.3 billion, records from the U.N. and carbon markets show. 

Then, in 2012, funding for the U.N. program dried up.

What has happened since at the two plants, and at nine others across China that now manufacture nearly half of the world’s adipic acid, has been a mystery. 

Zhao Duo, a general manager with Shenma, told InsideClimate News that his company continues to abate its nitrous oxide (N2O) emissions, but he would not say to what extent.

Satellite imaging and stationary air monitors can’t discern nitrous oxide emissions from chemical plants versus N2O emissions from other sources. Plant operators and government officials in China are hesitant to talk at this critical moment, when China is finalizing a wide ranging plan for economic development and emission reduction targets that will guide the country for the next five years. 

However, an InsideClimate News investigation, based on dozens of interviews and a review of hundreds of pages of documents from the Chinese government, the United Nations, and Chinese state media, strongly suggests that when funding for the U.N. program ended, so too did nearly all of the emissions reductions. This likely occurred despite the availability of proven, low-cost abatement technology.  

If the vast majority of the plants’ emissions are released, unabated into the atmosphere, their collective emissions would exceed the yearly greenhouse gas emissions from all passenger vehicles in California, the most populous state in America, as well as the emissions from all cars in Beijing and Shanghai, China’s two largest megacities.

If this is true, it’s a climate tragedy of epic proportions.  

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