Internal carbon price
IFRS S2 14b, IFRS S2 29f
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 CO
2
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.