Tue, Apr 23, 2013 -
China is set to receive funding to eliminate
the industrial production of ozone-depleting
HCFCs (or hydrochlorofluorocarbons) by 2030.
HCFCs are also a potent greenhouse gas.
23 April 2013 - The
United Nations body that supports developing
countries to phase out substances that damage
the ozone layer will provide China with
up to US$380 million in funding to eliminate
industrial production of the ozone-depleting
substances HCFCs (or hydrochlorofluorocarbons)
by the year 2030, it was announced today.
China - the world's largest producer and
consumer of HCFCs - is set to retire its
current HCFC production capacity, as well
as surplus production capacity that is currently
not utilized, as part of the agreement with
the Multilateral Fund for the Implementation
of the Montreal Protocol.
The Chinese government says the total amount
of HCFCs to be eliminated by 2030 will prevent
the emission of over 4.3 million metric
tonnes of HCFCs (equal to 300,000 tonnes
in terms of its ozone depletion potential),
and 8 billion tonnes of carbon dioxide equivalent
greenhouse gas emissions.
HCFCs are widely used
in the refrigeration, foam, solvent, aerosol
and fire fighting sectors as a replacement
for ozone-depleting CFCs (chlorofluorocarbons),
which were successfully phased out worldwide
under the Montreal Protocol in 2010.
Although having considerably
lower ozone depleting potential than CFCs,
many HCFCs have high global warming potentials,
of up to 2000 times that of carbon dioxide.
HCFCs are among the
last remaining substances controlled by
the Montreal Protocol; one of the most widely
ratified treaties in United Nations history.
The Protocol has enabled
reductions of over 98 per cent of all global
production and consumption of controlled
ozone-depleting substances, thus supporting
the restoration of the ozone layer which
protects life on Earth from harmful wavelengths
of ultraviolet light.
China accounts for 92
per cent of the total HCFC production in
developing countries. The phase-out of HCFC
production in China is thus fundamental
to ensure the compliance of all developing
countries with the Montreal Protocol.
Under the new arrangement,
China will close and dismantle production
of HCFCs for uses controlled under the Montreal
Protocol. The country has agreed to ensure
that any HCFC plants that will receive funding
do not switch to producing HCFCs as industrial
feedstock; a use not controlled by the Montreal
Protocol.
Over the next four years,
China will receive US $95 million to cover
the first stage of its HCFC production phase-out
management plan. This is designed to assist
the country to meet the freeze in HCFC production
by 2013 and the reduction by 10 per cent
by 2015, as required by the Montreal Protocol's
HCFC phase-out schedule.
China's progress towards
phasing out HCFC production will be verified
by the Multilateral Fund before further
funding is awarded. Any interest earned
by China on the amounts received will be
offset against future funding.
The project with China
is potentially the largest approved so far
under the Multilateral Fund.
Since 1991, the Multilateral
Fund has approved activities including industrial
conversion, technical assistance, training
and capacity building worth approximately
US $3 billion that will result in the phase
out of more than 460,000 Ozone Depletion
Potential tonnes of ozone-depleting substances
in developing countries.
The United Nation Environment
Programme (UNEP) is one of four implementing
agencies of the Multilateral Fund, along
with the United Nations Development Programme
(UNDP), the United Nations Industrial Development
Organization (UNIDO) and the World Bank.
Notes to Editors
About the Multilateral
Fund for the Implementation of the Montreal
Protocol
The Montreal Protocol
sets specific time bound targets to reduce
and eventually phase-out the consumption
and production of chemicals that damage
the ozone layer (ozone depleting substances
or ODS) in both developed and developing
countries.
The Multilateral Fund
for the Implementation of the Montreal Protocol
was established to provide financial and
technical cooperation, including the transfer
of technologies to Parties operating under
paragraph 1 of Article 5 of the Montreal
Protocol, Article 5 countries, to enable
their compliance with the Montreal Protocol's
targets. Article 5 countries are developing
country Parties whose annual per capita
consumption and production of CFCs and halons
is less than 0.3 kg per capita on the date
of entry into force of the Montreal Protocol
or any time thereafter until 1 January 1999.
There are currently 148 countries categorized
as operating under Article 5 paragraph 1
of the Montreal Protocol (September 2012).
The Multilateral Fund
is managed by an Executive Committee which
is responsible for overseeing the operation
of the Fund. The Committee comprises seven
members from developed and seven members
from developing countries. In 2013 the Committee
membership includes Belgium, Bulgaria, Canada,
Finland, Japan, United Kingdom of Great
Britain and Northern Ireland, and the United
States of America (developed countries)
and India, Kuwait, Mali, Nicaragua, Serbia
Uganda and Uruguay (developing country members)
. Ms. Fiona Walters (United Kingdom) serves
as Chair and Mr. VladanZdravkovic (Serbia)
serves as Vice-Chair of the Executive Committee
for one year beginning 1 January 2013. The
Committee is assisted by the Fund Secretariat
which is based in Montreal, Canada. Activities
are implemented by four international agencies
(UNDP, UNEP, UNIDO, World Bank) and a number
of bilateral government agencies.
In September 2007 the
Parties to the Montreal Protocol decided
to accelerate the freeze and phase-out of
hydrochlorofluorocarbons (HCFCs). Hydrochlorofluorocarbons
(HCFCs) are ozone-depleting substances (ODS)
with a significant global-warming potential.
The Montreal Protocol requires Article 5
country Parties to gradually phase-out HCFCs
starting from 2013 with a freeze in consumption
and production, a 10 per cent reduction
by 2015, 35 per cent reduction by 2020,
a 67.5 per cent reduction by 2025 resulting
in the complete phase-out of HCFC consumption
and production by 2030 while allowing an
amount of 2.5 per cent for the servicing
of existing refrigeration and air conditioning
equipment during the period 2030 to 2040.
The Multilateral Fund intends to finance
HCFC phase out in the countries eligible
for its financial and technical assistance.
As at the 69th meeting of the Executive
Committee that took place from 15 to 19
April 2013 in Montreal (Canada), 138 Article
5 countries have national plans to phase-out
HCFCs in place.