Major Issues to be Discussed at the 22

Major Issues to be Discussed at the 22 nd Meeting of the Parties to the Montreal Protocol Ozone Secretariat UNEP October 2010

Main topics of this presentation l Terms of reference for replenishment and an evaluation of the financial mechanism l Proposal on assessment of HCFC guidelines l Proposal on status of HCFCs in preblended polyol l Proposals on ODS Destruction / Destruction of HFC 23 l Proposed HFC amendments to the Montreal Protocol l Essential Use, Critical Use, Process Agent, Lab and Analytical use and QPS exemptions l Other Matters (Haiti, Stockpiles, status of the Executive Secretary post)

But before we get to the substance – lets do some logistics and admin for MOP will be 8 -12 Nov in BANGKOK THAILAND – Please send an email to Marco reconfirming your participation l l Get your travel, visa and hotels set now l Bring your laptops – paperless meeting Admin – in 2011 LAC has Rap. on Bureau and 3 Excom seats. Nicaragua's initial term on Impcom is ending – can get new term or be replaced l

VISA INFORMATION 63 countries can enter Thailand without a visa or can get a visa on arrival l Unfortunately, not many are in this region: Argentina, Brazil, Canada, Chile, Peru, USA don’t need a visa l No countries here are eligible for visa on arrival l 4

Now on to substance First issue – Fund related work 5

Terms of Reference for 2012 -2014 Replenishment of the Multilateral Fund l In year before replenishment, parties prepare TOR for a TEAP study on funds needed for next 3 years l. OEWG progressed on consensus Terms of Reference for TEAP replenishment study (doc. 22/3 – Decision XXI/[D]) l At OEWG, the only outstanding issues appeared to be whether the TEAP should be asked to: (a) provide indicative figures for $$ that would be needed for A 5 parties to comply with the HFC amendment proposals AND/OR whether they should be asked to (b) provide indicative figures for additional $$ to promote HCFC alternatives with low GWP taking account of H&S

Terms of reference for an evaluation of the Financial Mechanism 22 nd MOP agreed to undertake a future evaluation of the financial mechanism - OEWG made considerable progress on terms of reference – doc. 21/3 decision XXII/C l Main outstanding issues - Number [6] and designation of who will be on a steering panel and cost of study - whether to request the study to address: (a) the [Total reductions [and introduction of] greenhouse gases in CO 2 eqs resulting from MLF activities and production capacity installed]; (b) [Comparison of approved incremental costs and actual [incremental] costs (c) [ID of incidental impacts of MLF activities, not directly related to ODS [or GHG] (d) [Comparison of env impacts of substitutes and alternatives funded by MLF per XIX/6; ] (e) Adequacy and effectiveness of [the division of labor between] the Excom, Secretariat, evaluation function, Treasurer and the IAs and bilateral agencies; 7

Proposed Assessment of HCFC Guidelines l Argentina, Brazil, Columbia, Uruguay and Venezuela proposed to request TEAP to assess and submit to the OEWG a report on: - The extent to which the HCFC funding guidelines would allow A 5 s to use low GWP alternatives - Quantities and types of HFCs and applications where HFCs are likely to be phased in as HCFC alternatives due to lack of low GWP alternatives or insufficient funding This proposal was to be initially discussed in the replenishment contact group 8

Proposal by India on affirming the status of HCFCs preblended in polyol l India proposed to have the Meeting of the Parties: - affirm that HCFCs preblended in polyol are to be defined as a controlled substance, and subjected to the phaseout, - affirm that related consumption should be eligible for MLF funding - urge parties to report production, consumption and exports of HCFCs preblended in polyols from 2009, and earlier if possible, and requests the Secretariat to adjust reporting formats accordingly Subsequent to the OEWG – Excom took a decision to fund phaseout of HCFCs preblended in polyol without changing historic status; given this, its unclear whether this proposal will be withdrawn 9

Issue II: Four Proposals on ODS Destruction l Australia: Analyze MBR destruction technologies and add to the list of approved technologies if appropriate l Nigeria: TEAP to develop criteria for handling and destruction of ODS at relevant facilities and deciding what technology to use, and update list of approved technologies l EC: encourage addressing banks through GEF synergies, pursuit of schemes where importers or producers take responsibility for disposal; request TEAP to update list of approved technologies and to report on MLF and GEF experience; and explore additional options l Mauritius: request DTIE to study and present to the regions and the OEWG a report on ODS banks in LVCs with a view to ensuring destruction with optimized cost/benefit and aggregating small quantities to facilitate effective destruction 10

Issue III Items related to HFCs 11

Proposal on Destruction of HFC 23 byproduct emissions of HCFC 22 - Update info on HCFC 22 production facilities for next years OEWG - Estimate incremental cost of collection/ destruction of HFC 23 by product emissions - Urgently facilitate the formulation and implementation of projects to eliminate emissions for lines not getting CDM credit - Request TEAP study costs on a facility or production line basis for OEWG 12

Some key points of proposal by Canada, Mexico and the United States of America l Non-A 5 Parties freeze HFC production/consumption in [2014] at 2004 -2006 levels of HFCs plus HCFCs, and reduce [20%] in 2017, [30%] in 2020, [50%] in [2025], [70%] in [2029], and, 85% in [2033], with 10% production allowance for basic domestic needs. l A 5 Parties would have a grace period from dates above. MLF to cover HFCs. l Strictly limits HFC byproduct emissions from HCFC 22 production by 2014 l Estimated to result in reduction of 3100 MMT CO 2 eq through 2020 and around 88000 mmt. CO 2 eq through 2050 13

HFC Amendment Proposal Federated States of Micronesia Developed base: 04 -06 HFCs/HCFC 2012: 2015: 2018: 2021: 2024: 2027: 2030: freeze [15%] reduction [30%] reduction [45%] reduction [60%] reduction [75%] reduction [90%] reduction Developing base 07 -09 HCFC P and C 2018: 2021: 2024: 2027: 2030: 2033: 2036: Freeze [15%] [30%] [45%] [60%] [75%] [90%] HFCs covered under MLF including HFC 23 destruction 14

Item 4 Items related to Exemptions 15

MBR Critical Use Exemptions l The Parties have come a long way: 18 k t in 2006 – about 1. 5 k t for 2012 Party 2011 2012 Australia 35 Canada 4 16 Israel 232 Japan 221 USA 1182 Total 236 1454 Interim rec 32 2/16 224 220 994 226/1261 16

Essential Use Exemptions 2010 nom Argentina 178 Bangladesh 156 China 972 India 343 Iran 105 Pakistan 35 Russia 212 Russia (aircraft) 120 2011 nom 120 113 810 192 105 40 248 100 2012 rec 107 39 741 48 105 40 212 100 Egypt, Syria and USA have eliminated requests 17

Lab Use Exemptions l. TEAP review found alternatives available for most applications and recommended that the exemption no longer apply to a long list of those applications l. At OEWG - no draft decision – recognized need for more work including a decis XXI/6 requested evaluation of A 5 s ability to phaseout related uses. That evaluation will be done for next year 18

Process Agents l. Process agent generally refer to ODS used as a catalyst in production of other chemicals – mostly minimal emissions l. At OEWG – some parties suggested updating table of approved process agent uses to eliminate those applications that have already been phased out 19

Proposal on Quarantine and Preshipment (QPS) l XXI/10 QPS report covering MBR and alternatives used for timber and wood packaging material; grains/foodstuffs; pre-plant soil use; and logs. Also requested methodology for assessing impact of MBR QPS restrictions. Report was done and is in Chapter 8, volume 2 TEAP At OEWG, TEAP presented and EC proposed decision N, doc 22/3 1. Asked parties: to review MBR rules to allow other treatments; use narrow QPS definition; 3. submit sectoral QPS data by 2012 2. TEAP to do report for assessing impact of possible QPS controls s 3. Asked Secretariat to review data and re-ask Parties for fill in data if data was incomplete 20

Item 5 Other Matters 21

Special Situation of Haiti l. Draft decision from Grenada and St Lucia aimed at assisting Haiti in its compliance following the 1/2010 earthquake l. Revised proposal found as draft decision XXII/[O] in chapter I of document UNEP/Oz. L. Pro. 22/3 - consensus apparent 22

Stockpiles and compliance l. Some parties have reported they exceeded reduction target due to intent to use or export the ODS in question in the future and for an exempted use (eg: BDN, feedstock, essential use) l. EU draft decision (XXII/X in doc 22/3) designed to facilitate tracking of this excess ODS to ensure it is used as expected 23

Level of Executive Secretary Post l. Head of MEA secretariats are at different grades/levels – eg: CBD, Climate and Desertification are at Assistant Secretary General (ASG) level - Ozone Secretariat at D 2; difference in status, pay and retirement Grenada proposed to examine cost and process for upgrading post. Finding: $25 k and decision of parties to request UNEP to work with UN Secretary Gen to upgrade l 24

Conclusion - Busy meeting - Make your plans for being there now - Consider your regional reps for 2011 posts - See you at the MOP 25