UNEP/OzL.Pro.WG.1/36/2. United Nations Environment Programme

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1 UNITED NATIONS EP UNEP/OzL.Pro.WG.1/36/2 Distr.: General 20 May 2015 Original: English United Nations Environment Programme Open-ended Working Group of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer Thirty-sixth meeting Paris, July 2015 Items 3 11 of the provisional agenda* Issues for discussion by and information for the attention of the Open-ended Working Group of the Parties to the Montreal Protocol at its thirty-sixth meeting Note by the Secretariat I. Introduction 1. Section II of the present note sets out a summary of the issues on the provisional agenda for the thirty-sixth meeting of the Open-ended Working Group of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer. Information from and recommendations by the Technology and Economic Assessment Panel regarding several of those issues will be contained in the Panel s 2015 progress report which is expected to be ready for posting on the Ozone Secretariat website at the end of May. Once the progress report has been finalized, the Secretariat will prepare an addendum to the present note that will summarize the Panel s findings on those issues. 2. Section III of the present note sets out information on matters that the Secretariat would like to bring to the attention. * UNEP/OzL.Pro.WG.1/36/1. K

2 II. Summary of issues for discussion by the Open-ended Working Group at its thirty-sixth meeting Agenda item quadrennial assessment reports of the Scientific Assessment Panel, the Environmental Effects Assessment Panel and the Technology and Economic Assessment Panel 3. Article 6 of the Montreal Protocol calls for a review, at least once every four years, of the control measures provided for in Article 2 and Articles 2A 2I of the Protocol on the basis of available scientific, environmental, technical and economic information. Pursuant to Article 6 and in accordance with decision XXIII/13, the Scientific Assessment Panel, the Environmental Effects Assessment Panel and the Technology and Economic Assessment Panel have completed their quadrennial assessment reports. 4. The full reports of the Scientific Assessment Panel and the Environmental Effects Assessment Panel were made available on the Ozone Secretariat website in January 2015, while the reports of the Technology and Economic Assessment Panel and its technical options committees were made available during the period February to May The panels will present their assessment findings to the Working Group at its thirty-sixth meeting. The summaries of their reports will be included in an addendum to the present note. 5. The panels have jointly embarked on the preparation of a synthesis report which not only covers the main components of each of their individual reports but synthesizes them in order to draw key conclusions. The synthesis report is expected to be issued around September 2015 and will be presented to the Twenty-Seventh Meeting of the Parties. Agenda item progress report of the Technology and Economic Assessment Panel 6. The 2015 progress report of the Technology and Economic Assessment Panel is expected to be finalized at the end of May Thus the information and recommendations of the Panel relevant to matters on the provisional agenda for the thirty-sixth meeting will be provided in an addendum to the present note to be issued at a later date. The Panel will present its report to the Working Group at its thirty-sixth meeting. Agenda item 5 Issues related to exemptions under Article 2A 2I of the Montreal Protocol (a) Nominations for essential-use exemptions for In accordance with decision IV/25, China submitted one request for an essential-use exemption for the use of 70 tonnes of carbon tetrachloride for testing of oil in water, a laboratory and analytical use, for The Chemicals Technical Options Committee has reviewed the request and its recommendation will be set out in the progress report of the Technology and Economic Assessment Panel and summarized in an addendum to the present note. No other nominations for essential uses were received in (b) Nominations for critical-use exemptions for 2016 and In 2015, four operating under paragraph 1 of (Argentina, China, Mexico and South Africa) submitted seven nominations for critical-use exemptions for methyl bromide for 2016 and three not operating under paragraph 1 of of the Protocol (Australia, Canada and the United States of America) submitted three nominations for The Methyl Bromide Technical Options Committee, which met in Makati, Philippines, from 23 to 27 March 2015, reviewed the nominations as well as additional information submitted by the nominating in response to the first round of questions by the Committee, and drew up interim recommendations on the quantity of methyl bromide eligible for such exemption. The progress report of the Technology and Economic Assessment Panel will include the report of the Committee and its interim recommendations which will be summarized in an addendum to the present note. In the meantime, the submitting critical-use exemption nominations in 2015 and the quantities they have nominated are listed in table 1. 2

3 Table 1 UNEP/OzL.Pro.WG.1/36/2 Summary of the nominations for 2016 and 2017 critical-use exemptions for methyl bromide submitted in 2015 (Metric tonnes) Parties not operating under paragraph 1 of and sector Nomination for Australia Strawberry runners Canada Strawberry runners United States of America Cured pork Total Parties operating under paragraph 1 of and sector Nomination for Argentina Strawberry fruit Green pepper and tomato 5. China Ginger open field Ginger protected 6. Mexico Raspberry nursery Strawberry nursery South Africa Mills Total (a) Agenda item 6 Issues related to alternatives to ozone-depleting substances Report by the Technology and Economic Assessment Panel on the full range of alternatives to ozone-depleting substances (decision XXVI/9, subparagraphs 1 (a) (c)) 9. In decision XXVI/9, paragraph 1, the requested the Technology and Economic Assessment Panel, if necessary in consultation with external experts, to prepare a report identifying the full range of alternatives to ozone-depleting substances, including not-in-kind technologies, for consideration by the Open-ended Working Group at its thirty-sixth meeting and an updated report to be submitted to the Twenty-Seventh Meeting of the Parties. The latter report would update information on alternatives to ozone-depleting substances in various sectors and subsectors and differentiating between operating under paragraph 1 of and not so operating, considering energy efficiency, regional differences and high ambient temperature conditions in particular, and assessing whether they were: (i) (ii) (iii) (iv) (v) (vi) Commercially available; Technically proven; Environmentally sound; Economically viable and cost effective; Safe to use in areas with high urban densities considering flammability and toxicity issues, including, where possible, risk characterization; Easy to service and maintain; and describing the potential limitations of their use and their implications for the different sectors, including servicing and maintenance requirements, and international design and safety standards. The Panel was also requested to provide information on energy efficiency levels in the refrigeration and air-conditioning sector referring to high-ambient temperature zones in international standards; and to revise the scenarios for current and future demand elaborated in the October 2014 final report of the Panel under decision XXV/5 to improve information related to costs and benefits taking into account 3

4 (b) technology uptake, criteria listed in paragraph 1 (a) of decision XXVI/9 and progress under stage I and stage II of hydrochlorofluorocarbon (HCFC) phase-out management plans. 10. The Panel established a task force in response to decision XXVI/9. In accordance with the decision, a report by the task force will be issued as part of the 2015 progress report of the Panel for consideration by the Open-ended Working Group at its thirty-sixth meeting. At the thirty-fifth meeting of the Open-ended Working Group, held in Bangkok from 22 to 24 April 2015, the task force presented an extract report, including information on progress, the planning of and timeline for the report as well as the highlights of certain topics being considered in the report, which was to include full information on low-global-warming-potential refrigerants and their applications, safety issues, analysis of potential performance under high ambient temperature conditions, and further elaboration on the scenarios. A summary of the report of the task force will be included in an addendum to the present note. Updated information submitted by on their implementation of paragraph 9 of decision XIX/6 to promote a transition from ozone-depleting substances that minimizes environmental impact (decision XXVI/9, paragraph 3) 11. In paragraph 3 of decision XXVI/9, were encouraged to continue to provide to the Secretariat, on a voluntary basis, information on their implementation of paragraph 9 of decision XIX/6, including information on available data, policies and initiatives pertaining to the promotion of a transition from ozone-depleting substances that minimizes environmental impact wherever the required technologies are available, and to request the Secretariat to compile any such submissions received. 12. At the thirty-fifth meeting of the Open-ended Working Group, the Secretariat issued an information note on submissions by on the implementation of decision XIX/6 (UNEP/OzL.Pro.WG.1/35/INF/2), in which it had compiled two new submissions made by since the Twenty-Sixth Meeting of the Parties in 2014 in response to decision XXVI/9. To date, no further submissions have been received from the. Furthermore, the note by the Secretariat on an overview of issues related to HFCs and their management (UNEP/OzL.Pro.WG.1/35/2) contained, in section V, information on regulatory frameworks, policies measures and initiatives to control HFCs. Section V.A, in particular, focused on the national and regional policy measures and initiatives to manage hydrofluorocarbons (HFCs), extracted from the submissions by the regarding their implementation of decision XIX/6, paragraph The Secretariat will continue to compile the submissions by the and update the summary document prepared for the Twenty-Sixth Meeting of the Parties (UNEP/OzL.Pro.26/9) as appropriate. 14. The Working Group may wish to note the status of the submissions and the expected updates of the compilation and the summary and make recommendations as appropriate. Agenda item 7 Outcome of the intersessional informal discussions on the feasibility and ways of managing hydrofluorocarbons (UNEP/OzL.Pro.WG.1/35/6, paragraph 128 and annex II) 15. At its thirty-fifth meeting, the Open-ended Working Group agreed that it would continue to work intersessionally in an informal manner to study the feasibility and ways of managing HFCs, including, inter alia, the related challenges set out in annex II to the report of the thirty-fifth meeting of the Open-ended Working Group, with a view to the establishment of a contact group on the feasibility and ways of managing HFCs at the thirty-sixth meeting of the Open-ended Working Group (UNEP/OzL.Pro.WG.1/35/6, para. 128). 16. Intersessional work is expected to take place through consultations among including bilateral discussions with the co-conveners (Australia and Brazil) of the informal discussion at the thirty-fifth meeting of the Open-ended Working Group, as well as the submission of written inputs. The Secretariat sent a letter to the in late May 2015 informing them of this all-inclusive approach and inviting them to discuss and submit written ideas and solutions for addressing the challenges identified. As part of the effort, an intersessional informal meeting is being convened at the Vienna International Centre, in Vienna, on 12 and 13 June Taking into account their active participation in the informal discussions during the thirty-fifth meeting of the Open-ended Working Group, regional representation and budgetary considerations, twenty-five have been invited by the co-conveners to participate in the informal meeting. 4

5 (a) (b) 17. The Working Group is expected to hear from the co-conveners on the outcome of the intersessional work. Agenda item 8 Proposed amendments to the Montreal Protocol 18. Four proposals for amendments to the Montreal Protocol have been submitted pursuant to Article 9 of the Vienna Convention for the Protection of the Ozone Layer and paragraph 10 of Article 2 of the Protocol. In accordance with the procedure specified in the Convention and the Protocol, the four proposals for amendments were submitted and distributed six months before the Twenty-Seventh Meeting of the Parties, which is scheduled to begin on 1 November 2015, for consideration at that meeting. 19. The proposals seek to amend the Montreal Protocol by managing and phasing down HFCs, which are being used predominantly as replacements for ozone-depleting substances that are being phased out under the Montreal Protocol. The four proposals are contained in the following documents: (a) Proposed amendment to the Montreal Protocol submitted by Canada, Mexico and the United States of America (UNEP/OzL.Pro.WG.1/36/3); (b) Proposed amendment to the Montreal Protocol submitted by India (UNEP/OzL.Pro.WG.1/36/4); (c) Proposed amendment to the Montreal Protocol submitted by the European Union and its member States (UNEP/OzL.Pro.WG.1/36/5); (d) Proposed amendment to the Montreal Protocol submitted by Kiribati, Marshall Islands, Mauritius, Micronesia (Federated States of), Palau, Philippines, Samoa and Solomon Islands (UNEP/OzL.Pro.WG.1/36/6). 20. The Secretariat has prepared a schematic summary that presents some of the key elements of the four amendment proposals (see annex). Agenda item 9 Issues related to hydrochlorofluorocarbons phase-out Possibilities or need for essential-use exemptions in respect of not operating under paragraph 1 of of the Montreal Protocol (decision XIX/6, paragraph 12) 21. In paragraph 12 of decision XIX/6, the agreed to address the possibilities or need for essential-use exemptions for HCFCs, no later than 2015 where this related to not operating under paragraph 1 of, and no later than 2020 where this related to operating under paragraph 1 of. 22. The current control measures for HCFCs under Article 2F do not provide for essential-use exemptions. Parties not operating under paragraph 1 of may wish to present information on their experiences and situations in order to enable the Working Group to consider the need for HCFC essential-use exemptions. The Working Group may wish to consider the matter and make recommendations, if any, to the Twenty-Seventh Meeting of the Parties. Should the need for essential-use exemptions be established and agreed in a future Meeting of the Parties, appropriate provisions may be included in the Montreal Protocol as adjustments. Review of the need for the 0.5 per cent for servicing equipment for the period in respect of not operating under paragraph 1 of provided for in paragraph 3 of decision XIX/6 (decision XIX/6, paragraph 13) 23. In paragraph 13 of decision XIX/6, the agreed to review in 2015 the need for the 0.5 per cent for servicing provided for in paragraph 3 of the same decision that specifies the reduction steps for not operating under paragraph 1 of of the Protocol, and to review in 2025 the need for the annual average of 2.5 per cent for servicing provided for in paragraph 4 (d) of the same decision that specifies the HCFC reduction steps for operating under of the Protocol. 24. The current control measures for HCFCs under Article 2F include allowance for continued production and for servicing of refrigeration and air-conditioning equipment of not more than 0.5 per cent of the baseline amounts for not operating under paragraph 1 of for the period 2020 to Those may wish to present information on the current and expected situation with regard to servicing needs in order to enable the Working Group to consider the issue. 5

6 (c) The Working Group may wish to make recommendations, if any, on the matter to the Twenty-Seventh Meeting of the Parties. Any changes to the existing provisions that the may agree upon in a future Meeting of the Parties may be adopted as adjustments to the Montreal Protocol. Consideration of further reductions of production of hydrochlorofluorocarbons for each party producing for basic domestic needs (decision XIX/6, paragraph 14) 25. In order to satisfy basic domestic needs, the, in paragraph 14 of decision XIX/6, agreed to allow for up to 10 per cent of baseline levels of HCFC production until 2020, and, for the period after that, to consider no later than 2015 further reductions of production for basic domestic needs. 26. As are aware, the Beijing Amendment to the Montreal Protocol (1999) introduced a production allowance of 15 per cent of the HCFC baseline for not operating under paragraph 1 of in order to satisfy the basic domestic needs of the operating under paragraph 1 of. Similarly, for operating under paragraph 1 of, the Beijing Amendment had introduced a production allowance of 15 per cent of their original HCFC baseline (average of 2015 production and ) for basic domestic needs from Under the accelerated phase-out schedule adopted by the in decision XIX/6 (adjustments to the Montreal Protocol), not operating under paragraph 1 of have a production allowance of 10 per cent of the baseline for basic domestic needs from 2010 onwards and no allowance from 2020 onwards. Parties operating under paragraph 1 of do not have any production allowance for basic domestic needs. 28. There are 39 not operating under paragraph 1 of with annual production allowances totalling up to 4117 ODP-tonnes for each year up to Five have reported production for basic domestic needs over the past 10 years ( ). The maximum production for basic domestic needs was about 1500 ODP-tonnes in The annual average over those 10 years was about 860 ODP-tonnes. Only one party has reported production for basic domestic needs in the past three years ( ). 29. The Working Group may wish to consider the need for production allowance for basic domestic needs beyond 2020 and make recommendations, as appropriate, to the Twenty-Seventh Meeting of the Parties. Should the need for continued production for basic domestic needs be agreed upon in a future Meeting of the Parties, appropriate provisions may be included in the Montreal Protocol as adjustments. Agenda item 10 Measures to facilitate the monitoring of trade in hydrochlorofluorocarbons and substituting substances (decision XXVI/8) 30. In decision XXVI/8, the, among other things, requested the Secretariat to liaise with the World Customs Organization to examine the possibility of designating individual Harmonized System codes for the most commonly traded fluorinated substitutes for HCFCs and chlorofluorocarbons (CFCs) classified under HS code , for the sole purpose of preventing the illegal trade in HCFCs and CFCs. The Secretariat was also requested to communicate to the the results of those consultations as soon as possible, but not later than at the thirty-sixth meeting of the Open-ended Working Group. Decision XXVI/8 was communicated by the Secretariat to the World Customs Organization in December The World Customs Organization has agreed to include the request for designating individual Harmonized System codes for HFCs in the agenda of either the forty-ninth session of the Harmonized System Review Subcommittee that will meet in November 2015 or the thirty-first session of the Scientific Subcommittee that will meet in January 2016 in order to obtain the views of these subcommittees before presenting the proposal to the fifty-seventh session of the Harmonized System Committee in March In the meantime, the World Customs Organization has requested the Secretariat to provide some information on the mostly common used HFCs, which the Secretariat has duly provided. The Secretariat will continue to liaise with the World Customs Organization on this 1 See data centre under Ozone Secretariat website at &anxgrp=ci&yr1=2009&yr2=

7 III. UNEP/OzL.Pro.WG.1/36/2 matter and update the as necessary on progress in the designation of new Harmonized System codes for HFCs. Agenda item 11 Potential areas of focus for the assessment panels 2018 quadrennial reports 32. The Working Group may wish to initiate a discussion on any guidance that the may wish to provide for the assessment panels 2018 quadrennial assessments and forward the recommendations from any such discussion to the Twenty-Seventh Meeting of the Parties for consideration. Matters that the Secretariat would like to bring to the attention A. Thirtieth anniversary of the Vienna Convention 33. The year 2015 marks thirty years since the adoption of the Vienna Convention for the Protection of the Ozone Layer, signed in Vienna on 22 March As part of activities to commemorate the thirtieth anniversary, the Ozone Secretariat is organizing a smart digital campaign that will entail the dissemination of powerful communications products, such as interactive videos, animations, infographics, posters and social media messages, through various outlets, to celebrate the many successes achieved under the ozone protection regime over the past three decades. The campaign is expected to increase awareness and knowledge about the achievements of the to the Vienna Convention and the Montreal Protocol and mobilize support to address current and future challenges to ensure the continued protection of the ozone layer and the climate. 34. The theme for the commemoration of the thirtieth anniversary of the Vienna Convention and this year s International Ozone Day, on 16 September 2015, is, 30 Years of Healing the Ozone Together, which celebrates the collective efforts of the to the Vienna Convention and the Montreal Protocol in protecting the ozone layer. The theme is supported by the slogan, Ozone: all there is between you and UV, which highlights the importance of the ozone layer in protecting life on Earth from the harmful effects of ultraviolet radiation from the sun. As in previous years, the United Nations Secretary-General s message for Ozone Day will be shared prior to the day for wider dissemination. Additional commemorative activities to mark the thirtieth anniversary of the Vienna Convention may be planned for the Twenty-Seventh Meeting of the Parties to the Montreal Protocol to be held in Dubai in November The Executive Director of the United Nations Environment Programme, Mr. Achim Steiner, has recorded a video message on the occasion of the thirtieth anniversary of the Vienna Convention. 2 Other downloadable campaign products, such as posters, banners and relevant information material, will be made available on the Ozone Secretariat s website in the coming weeks and months and will be informed as and when those products become available. B. Secretariat missions 36. The Secretariat participates in forums and meetings with a view to enhancing cooperation and synergies with other organizations, to provide relevant information pertaining to the implementation of and compliance with the Vienna Convention and the Montreal Protocol, and to contribute to and monitor activities of relevance to ozone layer protection pursuant to decisions of the. A list of the meetings attended by the Secretariat from January to May 2015 is provided below: (a) Forty-first session of the Intergovernmental Panel on Climate Change, February 2015, Nairobi; (b) Expert group meeting on the indicator framework for the post-2015 development agenda (25 26 February 2015) and seminar on the development of an indicator framework for the post-2015 development agenda (27 February 2015), New York; (c) Workshop on HFC management in countries: technology and financial requirements for leapfrogging to energy efficient and low-global-warming-potential technologies, February 2015, Goa, India; 2 7

8 (d) Fifteenth session of the African Ministerial Conference on the Environment, 2 6 March 2015, Cairo; (e) Joint thematic meeting of South Asia and Southeast Asia networks of Ozone Officers, March 2015, Goyang City, Republic of Korea; (f) Swing network meeting for ozone officers of West Asia and North Africa, March 2015, Manama; (g) Regional network meeting for ozone officers of Caribbean countries, March 2015, Nassau; (h) Seventy-fourth meeting of the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol, May 2015, Montreal, Canada; (i) Europe and Central Asia network of ozone officers and refrigeration and air conditioning experts, May 2015, Yerevan. 37. A more detailed note on Secretariat missions, activities and initiatives will be presented to the Twenty-Seventh Meeting of the Parties in November C. Status of recruitment for the Ozone Secretariat 38. Information on staffing issues is set out in the note by the Secretariat on an indicative financial report and financial issues related to the trust funds for the Vienna Convention and the Montreal Protocol (UNEP/OzL.Pro.WG.1/36/INF.1). D. Organizational issues regarding the Twenty-Seventh Meeting of the Parties 39. By decision XXVI/22, the decided to convene the Twenty-Seventh Meeting of the Parties in Dubai, United Arab Emirates, in November The Secretariat has been working with the Government of the United Arab Emirates on the organization of the meeting and undertook an exploratory mission to Dubai in February The Twenty-Seventh Meeting of the Parties will be held at the Conrad Hotel, located on Sheikh Zayed Road in Dubai, from 1 to 5 November

9 Annex UNEP/OzL.Pro.WG.1/36/2 Schematic summary of the HFC amendment proposals submitted by Canada, Mexico and the United States (North American proposal), India (Indian proposal), the European Union (European Union proposal) and some island States 1 (Island States proposal) 2 North American proposal Indian proposal European Union proposal Island States proposal Baseline plus 75% of average HCFC in plus 50% of average HCFC in in plus 25% of the HCFC baseline* in plus 32.5% of the HCFC baseline** in plus 45% of average HCFC allowed under the Protocol in and HCFC in in plus 10% of the HCFC baseline* in plus 65% of the HCFC baseline** Baseline production production plus 75% of average HCFC production plus 50% of average HCFC production in plus 25% of the HCFC baseline* production plus 32.5% of the HCFC baseline** production plus 45% of average HCFC production allowed under the Protocol in plus 70% of average HCFC production in plus 10% of the HCFC baseline* production plus 65% of the HCFC baseline** production *1989 HCFC levels+2.8% of 1989 CFC levels ** Average levels *1989 HCFC levels+2.8% of 1989 CFC levels ** Average levels 1 Kiribati, Marshall Islands, Mauritius, Micronesia (Federated States of), Palau, Philippines, Samoa and Solomon Islands. 2 The schematic summary is being issued without formal editing. 9

10 North American proposal Indian proposal European Union proposal Island States proposal Potential reduction steps (% of the baseline production / ) Montreal Protocol Articles 2 & 5 Year Reduction steps apply to HFCs only % Reduction steps apply to HFCs only Reduction steps for apply to the basket of HFCs and HCFCs Reduction steps for production apply to HFCs only % % % 85% 2020 Freeze of combined HCFC and HFC Freeze of HFC production % 65% % 60% % Reduction steps apply to HFCs only % 65%** % % Further reduction steps and their % timing to be agreed 25% % by %** % % % Reduction steps 2034 to be determined 15% % 5 years in advance 25% % of the next 5 years period %* 10% % % * Step applies only to production 85%** ** Steps in years HCFC reductions are due 10

11 Article 1 North American proposal Indian proposal European Union proposal Island States proposal Controlled substances: 19 HFCs Controlled substances: 19 HFCs List of substances: 19 HFCs Controlled substances: 22 HFCs Key provisions per Montreal Protocol Article included in the legal texts of the amendment proposals Article 2 a Reduction steps for non- as indicated above Limits on HFC-23 by-product emissions Added definition of full conversion costs Reduction steps for non- as indicated above No controls on HFC-23 by-product emissions under the Protocol Added definition of listed HFCs Reduction steps for non- as indicated above Limits on HFC-23 by-product emissions Added definitions of UNFCCC and its Kyoto Protocol Reduction steps for non- as indicated above Limits on HFC-23 by-product emissions Destruction of HFC-23 by approved technologies Comprehensive efforts to convert HFC-23 into useful products Destruction of HFC-23 by approved technologies Destruction of HFC-23 by approved technologies Production to satisfy the basic domestic needs of Production to satisfy the basic domestic needs of Production to satisfy the basic domestic needs of Transfer of HFC production rights Transfer of HFC production rights Transfer of HFC production rights Transfer of HFC production rights Agreement by consensus on GWP adjustments for HCFCs and HFCs Agreement by consensus on GWP adjustments for HCFCs and HFCs Article 3 Calculation of HFC control levels including HFC-23 emissions Calculation of HFC control levels excluding HFC-23 emissions Calculation of HFC and HCFC control levels including HFC-23 emissions Calculation of HFC control levels including HFC-23 emissions Article 4 Bans on HFC trade with non- Bans on HFC trade with non- Bans on HFC trade with non- Bans on HFC trade with non- Licensing HFC imports/exports Licensing HFC imports/exports Licensing HFC imports/exports Licensing HFC imports/exports a Reduction steps for as indicated above Reduction steps for as indicated above Freeze and reduction steps for as indicated above Reduction steps for as indicated above a All proposals provide for phasing-down of HFC and production using Montreal Protocol s expertise and institutions while continuing to include HFCs under the scope of the UNFCCC and its Kyoto Protocol for accounting and reporting of emissions. 11

12 Article 6 North American proposal Indian proposal European Union proposal Island States proposal Key provisions per Montreal Protocol Article included in the legal texts of the amendment proposals Assessment and review of HFC control measures Article 7 Reporting on HFC production and Reporting on HFC-23 by-product emissions and amounts captured and destroyed by approved technologies Assessment and review of HFC control measures Reporting on HFC production and Assessment and review of HFC measures Reporting on HFC production and Reporting on HFC-23 by-product emissions and amounts captured and destroyed by approved technologies Assessment and review of HFC control measures Reporting on HFC production and Reporting on HFC-23 by-product emissions and amounts captured and destroyed by approved technologies Article 9 Research, development, public awareness and exchange of information related to alternatives, including HFCs Article 10 MLF support to to implement the amendment Strengthening the financial mechanism for providing financial and technical cooperation including transfer of technologies to b MLF support to to implement the amendment MLF strengthening and funding for the phase-down of HFC production and including support for early action and provisions for financial and technical cooperation to c b The financial mechanism would meet: Compensation for lost profit stream for gradual closure of production facilities of HFCs; Full costs of conversion to HFC production facilities; manufacturing unit of equipment(s)/products from HFCs to low-gwp/zero GWP alternatives, operating costs for 5 years; Full second conversion costs wherever transitional technologies are used; Adequate funding for servicing sector including training of technicians, awareness, equipment support etc; Transfer of Technology including technologies with Intellectual Property Rights (IPR), process and application patents. c The financial mechanism would promote energy efficiency and overcome barriers to the uptake of low-gwp technologies. 12

13 North American proposal Indian proposal European Union proposal Island States proposal Additional key elements included in the accompanying texts of the proposals Accompanying decision includes possible adjustments to HFC reduction schedules based on progress of deployment of alternatives no later than 2025 for non- and 2030 for Accompanying background text includes: Nationally determined phase-down steps for HFCs in Date of freeze to be the date of eligibility of enterprises for financial assistance Emissions of HFC-23 to be addressed on priority Research and Development efforts to convert HFC-23 into useful products Exemptions for MDIs and other medical applications Essential use exemptions for all No controls on HFC feedstock applications 13