UNITED NATIONS DEVELOPMENT PROGRAMME HCFC PHASEOUT PROGRAM INTERDEPENDENCY

UNITED NATIONS DEVELOPMENT PROGRAMME HCFC PHASEOUT PROGRAM INTERDEPENDENCY A COMPLICATION IN HCFC PHASEOUT IN FOAMS 1

HCFC Control Measures Old vs. New 2

PRECONDITIONS TO HCFC PHASEOUT • • ACCESS TO TECHNOLOGY ELIGIBILITY (61/40) FUNDS SUPPLY 3

ACCESS TO TECHNOLOGY (1) SUBSTANCE HCFC-141 b GWP MW GWP 725 117 Baseline 1, 030 134 443 794 148 279 1, 430 102 522 11 70 -718 1 44 -725 Methyl formate ‘ 0’ 60 -725 Methylal ‘ 0’ 76 -725 FEA-1100 5 164 ~-718 HFO-1234 ze 6 114 ~-719 HBA-2 <15 n/k >-708 AFA-L 1 <15 <134 >-708 HFC-245 fa HFC-365 mfc HFC-134 a Cyclopentane CO 2/Water 4

ACCESS TO TECHNOLOGY (2) (CFC) HCFC CO 2 HFC Red = high ODP/high GWP Yellow = low ODP/high GWP Black = no ODP/high GWP Green = no ODP/low GWP HC HCO HFO 5

ELIGIBILITY (1) DECISION 61/47 (b): Confirms that the phase-out of HCFC-141 b contained in preblended polyol systems that were imported and/or manufactured domestically, and counted as consumption under Article 7, was eligible for assistance according to existing guidelines; 6

ELIGIBILITY (2) • NO ADVANCE PROJECTS ANYMORE • PROJECTS NEED TO BE INCLUDED IN HPMP AND MEET STRATEGY • PROJECT FORMAT OPEN 7

AVAILABILITY OF FUNDS • CURRENT FUNDING TRANCHE LIMITED • REPLENISHMENT COMPLETELY OPEN • EXPECT DELAY/REJECTION FOR PROJECTS NOT NEEDED FOR 2013 COMPLIANCE AND FOR AFTER 2015 COMPLIANCE 8

SUPPLY 1. NEED TO INCLUDE SUPPLIER IN PROJECT DESIGN/IMPLEMENTATION 2. POTENTIAL NEED FOR TECHNOLOGY, TRAINING AND FUNDING OF SUPPLIER 3. SUPPLIER MAY BE IN ANOTHER COUNTRY 4. THIS CREATES COMPLICATIONS AND INTERDEPENDENY OF PROGRAMS 9

WHAT IS A SYSTEM HOUSE? 10

+ KNOW HOW! 11

WHAT IS A DOWNSTREAM USER? 12

THE ISSUE PHASING OUT HCFCs AT DOWNSTREAM USERS USING IMPORTED SYSTEMS NEED ACTION IN THE COUTRY OF EXPORT PHASING OUT HCFCs AT SYSTEM HOUSES NEED ACTION AT DOWNSTREAM USERS INCLUDING THOSE IN OTHER COUNTRIES 13

EXAMPLE 1: DOMINICAN REPUBLIC COUNTRY # OF SUPPLIERS MARKET SHARE Mexico 2 70% China 2 25% Spain 1 5% * May relocate to Panama 14

ACTION • STATUS – Project submitted to the 62 nd Ex. Com • TECHNOLOGY – Methyl formate base for budget calculations – Recipients allowed accepting other options if these options are zero ODP and low GWP – The MF based budget cost will be applied. Higher costs for the account of the downstream user (or supplier) • IMPLEMENTATION – The recipients to be divided into functional groups around their supplier – final choice of technology to be made together with the system supplier – UNDP to provide suppliers with technical information – System suppliers in A 5 countries are eligible for funding 15

EXAMPLE 2 URUGUAY COUNTRY # OF SUPPLIERS MARKET SHARE Argentina/Spain* 2 20% Brazil 2 80% * System comes from Spain; HCFC-141 b added in Argentina 16

ACTION • STATUS – Project deferred to 63 rd Ex. Com • TECHNOLOGY – Methyl Formate (MF) base for budget calculations – Recipients allowed other zero ODP/low GWP options – Budget will remain. Higher costs for the account of the downstream user (or supplier) • IMPLEMENTATION – MF trials this year – Suppliers informed and cooperation offered – Final choice of technology to be made in January – System suppliers in A 5 countries eligible for funding 17

CONCLUSION • AD HOC DECISIONS MADE FOR CURRENT PROJECTS • PROJECTS FOR SYSTEM HOUSES AND DOWNSTREAM USERS NEED COORDINATION • CLOSER PROJECT COORDINATION BETWEEN GOVERNMENTS NEEDED 18