Decision 52/6

Extended desk study on incentive programmes for retrofits

Following the discussion, the Executive Committee decided:

1. To urge Article 5 countries and respective implementing agencies to intensify their efforts to advance the implementation of approved incentive programmes in order to meet the established targets and phase-out schedules;
2. To draw the attention of Article 5 countries for which terminal phase-out management plans had been approved or would be approved in the near future to incentive programmes as a possibility for achieving CFC phase-out in the refrigeration servicing sector, provided the necessary pre-conditions were in place and lessons learned from previous programmes were taken into account;
3. To request the implementing and bilateral agencies concerned to disseminate the lessons learned from the implementation of incentive programmes among Article 5 countries, including through the regional network meetings;
4. To request all bilateral and implementing agencies that were implementing or considering implementing incentive programmes for retrofits to take into account all the elements contained in paragraph (e) below, as they might apply to their programmes; and
5. To request UNDP in cooperation with the Fund Secretariat:
   1. To provide, as part of the guidelines, a template for calculating estimated operating savings and efficiency gains resulting from retrofitting or replacing a given refrigeration system, as well as the economic benefits of extending the life time of retrofitted equipment;
   2. To clarify, during the preparation of incentive programmes, the methodology of calculating planned and actual CFC phase-out, taking into account local circumstances;
   3. To include in the guidelines the preparation of country-specific implementation milestones in order to facilitate monitoring and avoid delays;
   4. To foresee in the guidelines the possibility of adapting the scale and sequence of payments to local situations and to increase the maximum limit of US $10,000 for large-sized end-users in order to motivate them to proceed with the conversion where the total cost might significantly exceed their maximum entitlement; and
   5. To incorporate into the guidelines a preference for the use of drop-in alternatives based on natural substances such as hydrocarbons, and to use HCFC ternary blends as drop-in substitutes for CFC-12 only in exceptional circumstances, taking into account safety issues.