The Executive Committee decided:
- To request the World Bank and China to intensify their efforts to achieve the targets specified in the agreement between the Government of China and the Executive Committee as a precondition for approval of the 2007 annual work programme and its associated funding tranche;
- To specify that, for the purpose of the annual work programme for 2007 and following years under the agreement, the term “CFC phase-out contracts” would include contracts signed with the environmental pollution bureaus of either the provinces or very large municipalities. Those contracts would specify:
- The objective of full phase-out of CFC-11 use in the province or municipality in line with China’s commitments under the Montreal Protocol and in relevant CFC phase-out agreements;
- The related grant amount, the amount of phase-out to be achieved in each year, and the project duration;
- The related activities and their respective budgets, which should include:
- Introduction and enforcement of policies banning the use of CFC-11 for foam production from 1 January 2008;
- Training and technical assistance for the relevant local authorities;
- Identification of CFC-11-using enterprises in the respective area, commitments from provincial governments, and activities such as training, public awareness, surveys, monitoring, and enforcement;
- Visiting all registered foam enterprises in the respective area and registration of the blowing agent used;
- Surveys regarding CFC-11-using foam companies, polyol suppliers and CFC-11 dealers;
- Training and technical assistance provided by local and national foam experts to CFC-11-using enterprises in order to assist them in changing over to non-CFC-11 technologies; and
- Supply of CFC substitutes for formulation and trial production, where appropriate.
- At least 90 per cent of the funding under those contracts would be used for activities as per sub-items (b)(iii)c. to (b)(iii)g. above.
- To specify that the phase-out under those contracts for a given year was defined as the difference between CFC-11 use in the province or municipality during the previous year minus any phase-out from any implementation activities under the Multilateral Fund funded outside the specific contract, and minus the CFC-11 use in the given year;
- To specify that the CFC-11 use in the province or municipality in any year was determined for the period 1 January to 31 December by using the minimum of the amounts obtained through the following two methods:
- Sales data provided by the CFC-11 producers still producing in 2007. Those sales data should include produced quantities as well as sales of CFC-11 stocks from the CFC producers;
- Sales data from the larger CFC dealers in the province or municipality. For the first relevant year for which data were needed (baseline), the sales data for 2004-2006 would be reviewed and used to check the consistency of the data for the relevant year; and
- To request the World Bank to submit a report on the implementation of the 2007 tranche to the last meeting of the Executive Committee in 2008.