Decision 56/16

Cost structure for determining funding levels for preparation of HCFC investment and associated activities

On the basis of the text proposed by the contact group, the Executive Committee decided:

1. To note document UNEP/OzL.Pro/ExCom/56/13 regarding a cost structure for determining funding levels for preparation of HCFC investment and associated activities (decision 55/13(d));
2. To define the elements of a cost structure for funding the preparation of an overall HCFC phase-out management plan (HPMP) in line with decision 54/39 and comprising several components as follows:
   1. Assistance for policy and legislation, e.g. to develop new or extend existing legislation regarding HCFC, products containing HCFCs, quotas, and licences;
   2. Survey of HCFC use and analysis of data;
   3. Development and finalization of the HPMP including its stage one to address the 2013 and 2015 control measures, the latter being akin to a terminal phase‑out management plan (TPMP) or a refrigeration service sector plan;
   4. Development of investment activities for the HCFC-consuming manufacturing sectors for stage one of an HPMP, if such activities were necessary;
3. To provide funding for elements (b)(i) to (iii) above as specified in the table below, based on the countries’ HCFC consumption for 2007, while applying decision 55/13(a), (b) and (c):

4. To limit the maximum funding provided for the element (b)(iv) of the HPMP for any country with a manufacturing sector using HCFCs as per the following table based on the countries’ HCFC consumption for 2007, on the understanding that those limits represented maximum amounts and requests for project preparation would have to justify the level of funding up to that amount, and on the understanding that preparation costs for demonstration projects according to decision 55/43 paragraphs (b) to (f) were not taken into account when calculating that level of funding;

5. To define five manufacturing sub-sectors as follows: air-to-air air conditioning systems; refrigeration (including all refrigeration, heat pumps and air conditioning sub-sectors except air-to-air air conditioning systems); polyurethane foam; extruded polyurethane (XPS) foam; and solvent uses in manufacturing;
6. To provide funding for the element (b)(iv) of the HPMP for countries with manufacturing capacity up to a maximum specified below, to be determined by the total number of enterprises to be converted under HPMP stage one in the relevant sub-sector as defined under paragraph (e) above, excluding those enterprises with demonstration projects that might be chosen by the Executive Committee according to decision 55/43, paragraphs (b) to (f):
   1. One enterprise to be converted in a manufacturing sector: US $30,000;
   2. Two enterprises to be converted in a manufacturing sector: US $60,000;
   3. Three to 14 enterprises to be converted in a manufacturing sector: US $80,000;
   4. Fifteen or more enterprises to be converted in a manufacturing sector: US $150,000;
7. That in the case where Parties wish to submit requests for preparation of sub-sector plans in the approved sectors, the total funding available for all sub-sector plans in each sector should not exceed US $150,000;
8. Not to apply the provisions in subparagraphs (c), (e) and (f) above to China;
9. To request that for demonstration projects, according to decision 55/43 paragraphs (b) to (f), the request for preparation funds should include specification of country, sector, brief description of the project, approximate ODP tonnes phase-out to be achieved, the enterprise(s) to be addressed, if relevant, and the date when they began operation, reference to the relevant sub-paragraph of decision 55/43, and a description of compelling reasons as to why the Executive Committee should choose this project as described in decision 55/43 (b). Funding could be provided up to the following levels:
   1. Stand-alone demonstration projects (decision 55/43) in a manufacturing sector, per project: US $30,000;
   2. Umbrella demonstration projects (decision 55/43) with three to 14 beneficiaries in one manufacturing sector, per umbrella project: US $80,000;
   3. Projects addressing 15 or more beneficiaries could not receive preparation funding for demonstration projects related to decision 55/43; and
10. To request the Secretariat to apply this cost structure when assessing the eligibility for funding of the different elements of the HPMP preparation, and to propose adjustments to the structure, in particular with regard to investment and associated activities, to the Executive Committee when necessary.