Decision 72/40

Following the report by the convener of the contact group on a new text submitted by the group, the Executive Committee decided:

1. To note the overview of approved HCFC demonstration projects and options for additional projects to demonstrate climate-friendly and energy efficient alternative technologies to HCFCs contained in document UNEP/OzL.Pro/ExCom/72/40;
2. Pursuant to decision XXV/5 of the Twenty-Fifth Meeting of the Parties, to consider at its 75^th and 76^th meetings proposals for demonstration projects for low-global-warming potential (GWP) alternatives to HCFCs within the following framework:
   1. The following criteria would be applied when selecting projects:
      1. The project offered a significant increase in current know-how in terms of a low-GWP alternative technology, concept or approach or its application and practice in an Article 5 country, representing a significant technological step forward;
      2. The technology, concept or approach had to be concretely described, linked to other activities in a country and have the potential to be replicated in the medium future in a significant amount of activities in the same sub-sector;
      3. For conversion projects, an eligible company willing to undertake conversion of the manufacturing process to the new technology had been identified and had indicated whether it was in a position to cease using HCFCs after the conversion;
      4. The project proposals should prioritize the refrigeration and air‑conditioning sector, not excluding other sectors;
      5. They should aim for a relatively short implementation period in order to maximize opportunities for the results to be utilized for activities funded by the Multilateral Fund as part of their stage II HCFC phase‑out management plans (HPMPs);
      6. The project proposals should promote energy efficiency improvements, where relevant, and address other environmental impacts;
   2. Total funding for such projects described in sub-paragraph (b) above would not exceed US $10 million. The project proposals should also contain information on co-financing;
   3. Funding requests for project preparation and project concepts where no project preparation funding was required, including indicative costs of the final demonstration project for projects described in sub-paragraph (b) above, would be considered at the 74^th meeting. The funding requirements and project concepts should address the criteria described in sub-paragraph (b) above;
   4. If not extended by decision of the Executive Committee, the demonstration project would be considered financially completed 12 months after the intended completion date, and remaining funds would be returned; reporting obligations for the demonstration project would become part of regular progress reporting under the HPMP, and their fulfilment would be required to allow submission of a tranche;
   5. Any reductions in the consumption of HCFCs would be deducted from the starting point for sustained aggregate reductions in eligible consumption;
3. To invite bilateral and implementing agencies to provide proposals for feasibility studies, including business cases for district cooling, no later than the 75^th meeting. The resulting studies should assess possible projects, their climate impact, economic feasibility and options for financing such undertakings. The studies should enable stakeholders to understand the advantages and challenges as compared to business as usual. The funding for each study would be limited to a maximum of US $100,000, with a maximum of four studies to be funded. The Executive Committee is not agreeing with this approval to consider further funding beyond the feasibility studies; and
4. To request the Secretariat to prepare a paper analyzing the remaining eligible HCFC consumption in various sectors and subsectors of potential demonstration relevance, for consideration by the Executive Committee at its 74^th meeting.