Decision 93/67

The Executive Committee decided:

1. To approve, in principle, stage I of the Kigali HFC implementation plan (KIP) for Malaysia for the period 2023–2029 to reduce, by 2029, HFC consumption by 10 per cent of the country’s baseline, in the amount of US $9,275,115, plus agency support costs of US $649,258 for World Bank, as reflected in the schedule contained in annex LI to the present report;
2. To note:
   1. That the Government of Malaysia would establish its starting point for sustained aggregate reductions in HFC consumption on the basis of guidance provided by the Executive Committee; 
   2. That, once the cost guidelines for HFC phase-down had been agreed by the Executive Committee, the reductions from the country’s remaining HFC consumption eligible for funding would be determined in accordance with those guidelines; 
   3. That the reductions from the country’s remaining HFC consumption eligible for funding referred to in subparagraph (b)(ii) above would be deducted from the starting point referred to in subparagraph (b)(i) above; 
   4. That the Government of Malaysia would continue to monitor its HFC consumption to understand the extent to which reported consumption in baseline years was representative of the local market’s needs and to assess what future HFC demand would be, and would provide that analysis when submitting the second tranche of its KIP; 
   5. That, on the basis of the information provided in subparagraph (b) (iv) above, the Executive Committee might, as appropriate, revisit the country’s starting point for sustained aggregate reductions in HFC consumption; 
   6. That the Government of Malaysia would continue to monitor imports of large new market entrants in 2022 and include any relevant information in the request for the second tranche;
   7. The commitment of the Government: 
      1. To ban the installation of new HFC-23- and HFC-125-based fire suppression systems by 1 January 2026;
      2. To ban, by 1 January 2029, the manufacturing and import of the following equipment: HFC-based stand-alone commercial refrigeration equipment; HFC-based domestic refrigeration; components for refrigerated transport using HFC-134a, R-452A and R-404A; and split air conditioners and heat pumps using R-407C; 
      3. To ban, by 1 January 2029, new installations of chillers using R-407C; 
   8. That the car manufacturing enterprise Perusahaan Otomobil Nasional Sdn Bhd (Proton) would be eligible for further funding from the Multilateral Fund only for the phase-down of HFCs to convert the existing equipment on its second assembly line not assisted under stage I and for eligible incremental operating costs; 
3. To approve the first tranche of stage I of the KIP for Malaysia, and the corresponding tranche implementation plan, in the amount of US $3,042,912, plus agency support costs of US $213,004, for World Bank; and
4. To request the Government of Malaysia, World Bank and the Secretariat to finalize the draft Agreement between the Government of Malaysia and the Executive Committee for the reduction in consumption of HFCs, including the information contained in the annex referred to in subparagraph (a) above, and to submit it to a future meeting once the KIP Agreement template had been approved by the Executive Committee.