Decision 91/70

The Executive Committee decided:

1. To note:
   1. The 2021 verification report of the HCFC production sector in China considered by the Sub-group on the Production Sector;
   2. The report on the outcome of the assessment by the Government of an HCFC producer that might have exceeded its assigned 2020 quota for production of ODS for domestic use, submitted in line with decision 88/79(d);
   3. That the verification referred to in subparagraph (a)(i) above had been undertaken virtually in the light of the coronavirus disease pandemic and that the World Bank had not yet been able to undertake the verification required by decision 84/93(b), decision 86/99(e) and decision 88/79(c) or to provide the addenda required by decision 88/79(b)(i);
2. To request the World Bank to submit to the Executive Committee at the last meeting of 2023:
   1. An addendum to the 2019, 2020, and 2021 verification report of the HCFC production sector in China;
   2. The one-off verifications required by decision 86/99(e) and decision 88/79(c);
   3. An update on the enterprise Suqian Kaier, including in relation to the integrated nature, closure and dismantling of the HCFC-22 production line, as part of the verification of the 2022 HCFC production sector in China;
3. To request the World Bank also to verify, on a one-off basis, that the newly established production lines for HCFC-22 in the enterprises Jiangxi Lee and Man Chemical Company Limited, Jiangsu Changshu 3F Zhonghao New Chemical Material and Liaocheng Fu'er New Materials Science and Technology Co. Ltd, as well as the line in Zibo Feiyuan Chemical Co. Ltd for HCFC-133a, were vertically integrated with the production of the downstream facilities and that all HCFCs produced in the new lines would be for feedstock use, and to submit that report to the last Executive Committee meeting of 2023;
4. To apply the penalty clause in the Agreement between the Executive Committee and the Government of China on the basis that 18.58 metric tonnes of compensated HCFC production capacity had been redirected towards feedstock by the enterprise Zhejiang Artsen Chemical Co. Ltd facility, noting:
   1. That the penalty had been calculated at US $0.15 per kg, resulting in US $2,787 to be returned to the Multilateral Fund through China and the World Bank at the 91^st meeting;
   2. That the Government of China was taking steps to prevent further cases of redirection towards feedstock production by reviewing domestic options available to it, including by organizing training workshops and seminars for all HCFC producers to raise awareness and to enhance their daily production management and by organizing trainings for local Ecology and Environment Bureaux to enhance their capacity in enforcing regulations, managing phase‑out and monitoring HCFC producers;
5. To invite the Government of China, through the World Bank, to submit, at the last meeting of 2023, an update on the development of the technical guidelines being developed by the Government of China for reporting on HFC-23 generation and emission and a description of the methodology used to report that generation and those emissions under Article 7 of the Montreal Protocol; and
6. To request the Government of China, through the World Bank, to submit, at the last meeting of 2023, an analysis of and information that would clarify the discrepancy between the 2021 emissions of HFC-23 reported under Article 7 of the Montreal Protocol and the 2021 verification report.