Internal carbon price
In 2024, Nornickel continued to implement an internal carbon price. This tool is used to estimate the potential tax burden from future carbon regulation within the financial and economic models of individual projects and the Company’s overall budgeting model.
The Company analysed the practices of international metals and mining companies and selected the shadow pricing approach, which involves calculating theoretical costs or expenses to be considered in investment decision making. Several carbon price forecasts are applied depending on the expected level of carbon‑related payments under various economic and climate scenarios. For 2024, the base price was set at USD 49 per tonne of CO2 equivalent.
During the year, 60 of the Company’s investment projects were evaluated using this internal carbon price. Assessment results indicate that, even at its highest level, the internal carbon price does not reduce the NPV or IRR of commercial projects below predetermined thresholds.