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Report on the intermediate evaluation of CFC production sector phase-out agreements

The Forty-second Meeting of the Executive Committee, after discussing the production sector phase-out results planned and achieved, the measurements in metric and ODP tonnes and gross versus net saleable production, the discrepancies between CFC-production data reported under Article 7 and in the verification reports, capacity development and awareness building, the support extended for the development and production of substitutes for CFCs, prices and supply/demand for CFCs and substitutes, linkages to the illegal trade in CFCs, and the national and international audits and their focus, methods and schedules, decided:

(a)  to take note of the findings and recommendations in document UNEP/OzL.Pro/ExCom/42/12;

(b)  to clarify that, although the phase out agreement defines the maximum allowable CFC production in China in metric tonnes (MT), this production should continue to be planned and verified in ODP tonnes, as calculated in the original sector plan and the subsequent annual work programmes and verification reports;

(c)  to request the Government of India, in cooperation with the World Bank, to plan and verify allowable CFC production in India as so-called gross production, to review the calculations made to establish the baseline for the agreement, and to report to the 43rd Meeting of the Executive Committee on their findings;

(d)  to request the Governments of China and India to clarify, in cooperation with the Ozone Secretariat, the World Bank and the Fund Secretariat, differences in CFC production data reported under Article 7 to the Ozone Secretariat and in the verification reports;

(e)  to request the Secretariat, in cooperation with the World Bank and UNIDO, to review the verification guidelines adopted by the 32nd Meeting of the Executive Committee, with respect to the following;

      (i)   how to include movements of CTC to and from CFC producers and internal transfers of CTC in CFC-producing companies in the verification reports, annual progress reports and work programmes, in view of the intense pressure on CTC management in the enterprises as a result of the phase–out of CFC-11 and CFC-12;

      (ii)  for countries with CFC and CTC production sector phase-out agreements (China and India), the verification missions should be closely coordinated and possibly be merged;

      (iii) where plants co-produce CFC-11 and CFC-12, it might be necessary to determine whether the practice of counting unit ratios of CTC and AHF and comparing them with previous years was needed;

      (iv) whether the inspection and verification of the daily log books should continue to serve mainly as a back-up to clarify inconsistencies observed;

      (v)  whether reported measurements of CFC production should be rounded to the nearest 100 kg and then compared to the more accurate financial and sales records;

(f)  to request the World Bank and the Governments of China and India to revise the presentation of technical assistance activities in future annual reports and work programmes for the CFC production sector by:

      (i)   showing separately activities to maintain the national administrative infrastructure to manage the process, activities for awareness-building, and technical advice of direct interest to the enterprises (either individually or collectively);

      (ii)  specifying clearly the objectives, related outputs and inputs including planned and actual expenditures;

(g)  to recommend that the Governments of China and India, in cooperation with the World Bank, consider the recommendations presented in paragraphs 14 and 15 of document UNEP/OzL.Pro/ExCom/42/12, amending subparagraph 15(b) to read as follows: “(b) Conducting market research into the evolution of global markets for products made using CTC as feedstock to complement the research efforts and guide the investment of enterprises taking into consideration all environmental effects of manufacturing such end-products, including interlinkages between ozone layer depletion and climate change”.

(UNEP/OzL.Pro/ExCom/42/54, Decision 42/12, para. 62).

(Supporting document: UNEP/OzL.Pro/ExCom/42/12).

The Forty-third Meeting of the Executive Committee decided:

(a)  to take note of the report prepared by the Ozone Cell, Ministry of Environment and Forests, Government of India, and the World Bank;

(b)  to clarify that allowable CFC production in India should be verified as net production, apart from the years 2005 and 2007, when it should be gross production; and

(c)  that the foregoing decision, which applied solely to India’s CFC production, would not necessitate any change to the CFC production sector agreement that had been negotiated between the Executive Committee and India.

(UNEP/OzL.Pro/ExCom/43/61, Decision 43/5, para. 51).

(Supporting document: UNEP/OzL.Pro/ExCom/43/9).


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