Decision 91/56

The Executive Committee decided:

1. To note:
   1. The progress report on the implementation of the first tranche of stage II of the HCFC phase-out management plan (HPMP) for the Bolivarian Republic of Venezuela and the revised plan of action for the period from 2022 to 2026 for the complete phase-out of HCFC consumption, in the amount of US $1,367,144, plus agency support costs of US $95,700 for UNIDO, on the understanding that no additional funding from the Multilateral Fund would be provided for the phase-out of production and consumption of HCFCs;
   2. The commitment of the Government of the Bolivarian Republic of Venezuela:
      1. To reduce HCFC consumption by 88.8 per cent of the country’s baseline by 1 January 2023 and to phase out HCFCs completely by 1 January 2027, in advance of the Montreal Protocol phase-out schedule, and that HCFCs would not be imported after that date, except for those allowed for a servicing tail between 2030 and 2040, where required, consistent with the provisions of the Montreal Protocol;
      2. To issue a ban on the production of HCFC-22 by 1 January 2027;
      3. To issue a ban on the manufacturing and new installations of all refrigeration and air-conditioning equipment based on HCFC-22 by 1 January 2025;
      4. To allow imports of HCFC-141b contained in pre-blended polyols at a level no higher than 1.91 ODP tonnes, and to issue a ban on the import of HCFC-141b, pure and contained in pre-blended polyols, by 1 January 2025;
   3. That the Government of the Bolivarian Republic of Venezuela would have flexibility to allocate up to US $70,000, if required during the time of implementation of stage II, to provide technical assistance to eligible systems houses to develop formulations based on alternatives with low global-warming potential that were accessible and affordable on the local market, in line with the flexibility clause in the Agreement between the Government of the Bolivarian Republic of Venezuela and the Executive Committee;
   4. That the Fund Secretariat had updated the Agreement between the Government of the Bolivarian Republic of Venezuela and the Executive Committee, as contained in Annex XXVII to the present report, specifically paragraph 1 and Appendix 2‑A, to reflect the extension of stage II to 2027 for a total phase‑out of HCFCs, the redistribution of the remaining tranches and the changes to the remaining eligible consumption; Appendix 7-A, to reflect the adjustment of the reductions in funding for failure to comply; and paragraph 16, to indicate that the updated Agreement superseded that reached at the 82^nd meeting;
   5. That, to allow for consideration of the final tranche of its HPMP, the Government of the Bolivarian Republic of Venezuela should submit:
      1. A detailed description of the regulatory and policy framework in place to implement measures to ensure that HCFC consumption was in compliance with paragraph 8 ter(e)(i) of Article 5 of the Montreal Protocol for the period 2030–2040;
      2. If the Bolivarian Republic of Venezuela were intending to have consumption during the period 2030–2040, in line with paragraph 8 ter(e)(i) of Article 5 of the Montreal Protocol, proposed modifications to its Agreement with the Executive Committee covering the period beyond 2030;
2. To request the Government of the Bolivarian Republic of Venezuela and UNIDO:
   1. To include in the progress report associated with the request for the third tranche an update on the progress achieved in the re-establishment and application of the licensing and quota system and the results of the visits to importers, distributors and users to monitor the local HCFC market, including proposed sanctions or measures to address identified irregular imports and possession of HCFCs;
   2. To include, in the zero-leak and pilot demonstration projects to be implemented, measurement of performance in the baseline situation, monitoring of the repaired equipment for a representative period (one year), measurement of performance after intervention and a comparison of results with the production of data related to differences in energy and refrigeration consumption, leakage rates, needs for repair and other parameters, and to include this information in the reports associated with requests for tranches;
3. To deduct 162.75 ODP tonnes of HCFCs from the remaining HCFC consumption eligible for funding; and
4. To approve the second tranche of stage II of the HPMP for the Bolivarian Republic of Venezuela, and the corresponding 2023–2024 tranche implementation plan, in the amount of US $261,444, plus agency support costs of US $18,301 for UNIDO.