Decision 93/102

The Executive Committee decided: 

1. To define a “vertically integrated facility” as follows: “A vertically integrated facility is a facility that includes one or more production lines that produce ODS that are used exclusively as raw materials in the manufacture of other chemicals in a downstream process that is exclusively owned, operated and controlled by the same legal entity, including the legal entities within the same group. The vertically integrated facility may also purchase ODS to supplement those produced from the in-house production line(s) as long as the quantities of such supplementary ODS are monitored and reported clearly. A vertically integrated facility must also have the following features: 
   1. ODS produced in a vertically integrated facility are intended exclusively for use as feedstock in the downstream production process. The vertically integrated facility may also sell or transfer ODS, if there is surplus due to unforeseen plant closures or shutdowns, as long as it is exclusively sold for feedstock uses. In such a case, the Government concerned would inform the Executive Committee to ensure that the any such sales or transfers from the facility are included in the annual verification; 
   2. The design capacity of the downstream production processes must be compatible with or larger than the capacity of the upstream line(s) producing ODS; and 
   3. A monitoring and reporting mechanism must be in place to ensure that all ODS produced by the integrated facility are used exclusively as feedstock in the manufacture of other chemicals in the downstream production process.” 
2. To take note of the draft updated guidelines and the standard format used for the verification of ODS production phase-out, contained in document UNEP/OzL.Pro/ExCom/93/SGP/6; 
3. To approve the updated guidelines and the standard format used for the verification of ODS production phase-out, contained in annex II to document UNEP/OzL.Pro/ExCom/93/104/Rev.1; 
4. To take note also:
   1. That the Secretariat’s review of verification reports submitted in line with the updated guidelines might be delayed due to the need to compare the verified production data with the data submitted under Article 7 of the Montreal Protocol; and 
   2. In line with paragraph 4 of Appendix 5-A of the Agreement between the Government of China and the Executive Committee for stage II of the HCFC production phase-out management plan, that the World Bank may require additional funding for the verification of production lines beyond those for which tonnage was included in paragraph 3 of the Agreement, and that in line with subparagraph (c) of decision 83/70, the Executive Committee would consider the need for such additional funding on a case-by-case basis.