Decision 86/96

The Executive Committee decided:

1. To note the project proposal options to control and phase out HFC-23 by-product emissions at Quimobásicos contained in document UNEP/OzL.Pro/ExCom/86/96, Key aspects related to HFC-23 by-product control technologies: Mexico (decision 84/91);
2. To approve, in principle, US $3,833,384, plus agency support costs of US $268,337 for UNIDO, to enable the Government of Mexico to comply with the HFC-23 by-product emission control obligations under the Kigali Amendment to the Montreal Protocol, on the understanding that:
   1. The Government of Mexico would ensure that, by 1 January 2022 and thereafter, emissions of HFC-23 by-product from HCFC-22 production lines were destroyed in compliance with the Montreal Protocol, such that emissions for both lines were at or below 0.1 kg of HFC-23 per 100 kg of HCFC-22 produced;
   2. The Government of Mexico had the flexibility to use the funding approved in principle in sub-paragraph (b) above to refurbish either of the two, or both, plasma‑arc destruction units installed at Quimobásicos, as described in document UNEP/OzL.Pro/ExCom/85/65, on the understanding that any additional funding required would be covered by Quimobásicos;
   3. A maximum amount of US $2,995,047, out of the total funding approved, was associated with incremental operating costs and would be divided into annual tranches to be provided to Mexico upon verification of the quantity of HFC-23 by‑product destroyed;
   4. The incremental operating costs in each annual tranche would be calculated by multiplying the number of kilogrammes of HFC-23 destroyed by US $3.28/kg;
   5. The project would be completed by 1 January 2031;
   6. The Government of Mexico committed to ensuring that there would be no additional funding from other sources, including HFC-23 credits or offsets, for the control of HFC-23 by-product emissions from the production lines concerned, during or after completion of the project;
3. To note:
   1. The commitment by Quimobásicos to suspend production of HCFC-22 for up to two weeks to allow for the repair of the plasma-arc destruction unit, if the Government of Mexico were to choose Option 1A in document UNEP/OzL.Pro/ExCom/85/65;
   2. The commitment by the Government of Mexico to ensure that emissions of HFC‑23 by-product from HCFC-22 production by Quimobásicos would continue to be controlled and verified in the same manner after the completion of the project, including by means of policies and legislation;
   3. That the funding approved in principle specified in sub-paragraph (b) above was the total funding that would be available to the Government of Mexico from the Multilateral Fund for the control of HFC-23 by-product emissions;
   4. The funding provided included reductions for non-Article 5 ownership and exports to non-Article 5 Parties;
   5. The costs agreed for the project recognized the special circumstances of the project in Mexico and did not set a precedent for any other projects related to the control of HFC-23 by-product emissions;
4. To request the Secretariat, in cooperation with UNIDO, to prepare a draft Agreement between the Government of Mexico and the Executive Committee for the control of HFC‑23 by-product emissions for consideration at the 87th meeting, in light of the guidance provided by the Executive Committee at the 86thmeeting;
5. To invite the Government of Mexico, after the completion of the project, to consider requesting additional funding, for independent verification of the HFC-23 by-product generated, destroyed, sold, stored and emitted, under the subsequent stage of its HCFC phase-out management plan, until approval of the HFC phase-down plan for the country, at which time verification would continue under that plan; and
6. To approve the first tranche of the project to control and phase out HFC-23 by-product emissions at Quimobásicos in Mexico, and the corresponding 2021–2022 implementation plan, in the amount of US $483,058, plus agency support costs of US $33,814 for UNIDO.