Decision 71/42

The Executive Committee decided:

1. To note document UNEP/OzL.Pro/ExCom/71/55 on the draft guidelines for funding the preparation of stage II of HCFC phase-out management plans (HPMPs);
2. That, guided by the need to ensure compliance with the control measures of the Montreal Protocol for HCFC phase-out, in particular the 2020 reduction step, and the need to facilitate continuity of implementation of HPMP activities between stages, requests for project preparation funding for stage II of a country’s HPMP could be submitted no earlier than two years before the end date of the approved stage I of its HPMP as contained in paragraph 1 of its Agreement with the Executive Committee, unless otherwise indicated in the decision of the Executive Committee approving stage I of its HPMP;
3. To request bilateral and implementing agencies, when submitting a request for project preparation for stage II of an HPMP, to demonstrate that substantial progress in the implementation of stage I of the HPMP had been achieved, and to provide:
   1. For the overall stage II strategy:
      1. An indication of the activities that needed to be undertaken for project preparation, with specific costs clearly identified (i.e. surveys, consultation meetings, etc.);
      2. A description of the information that needed to be gathered and updated and an explanation of why it had not been included in stage I;
   2. For investment projects in line with decision 56/16:
      1. The number of enterprises for which funding was being sought;
      2. If the request was for a sector where project preparation had been approved for stage I but had not been included in the HPMP already submitted, an explanation of why additional funding was required and a list of activities with corresponding costs to support the request;
4. To provide project preparation funding for stage II of HPMPs for individual countries up to the following levels:
   1. US $30,000 for Article 5 countries with remaining HCFC consumption eligible for funding of 0 to 5 ODP tonnes;
   2. US $40,000 for Article 5 countries with remaining HCFC consumption eligible for funding of 5.1 to 10 ODP tonnes;
   3. US $60,000 for Article 5 countries with remaining HCFC consumption eligible for funding of 10.1 to 50 ODP tonnes;
   4. US $70,000 for Article 5 countries with remaining HCFC consumption eligible for funding of 50.1 to 100 ODP tonnes;
   5. US $90,000 for Article 5 countries with remaining HCFC consumption eligible for funding of 100.1 to 1,500 ODP tonnes;
   6. To be decided on a case-by-case basis for countries with remaining eligible consumption above 1,500 ODP tonnes.
5. To determine and provide funding for the preparation of stage II of any regional HPMPs on a case-by-case basis;
6. To provide funding for any Article 5 country with a manufacturing sector using HCFCs that had not been addressed in stage I of their HPMPs, according to the number of manufacturing enterprises to be converted as per decision 56/16(d) and (f), based on their remaining eligible consumption, as follows:
   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; and
   5. To limit the maximum funding provided for the preparation of the investment component for any country according to the table below:

7. To request Article 5 countries to include in the development and finalization of the strategic plan for stage II of the HPMPs, as a minimum, the control target of the Montreal Protocol subsequent to that committed to in stage I of their HPMPs;
8. To request bilateral and implementing agencies to ensure that the following information was included in project proposals for stage II of HPMPs, in addition to the information required by decision 54/39 and by the guidelines for the preparation of HPMPs, consistent with decision XIX/6:
   1. A description of how the HPMP strategy had considered the range of non‑ODS, technically proven, and commercially available alternatives, including climate-friendly alternatives to HCFCs;
   2. A qualitative description of how the strategy for the servicing sector had taken into account climate aspects;
   3. The proportion of foreign ownership and exports to non-Article 5 countries in the manufacturing sector;
   4. An indication of the project disbursement modality that would be used to implement the HPMP;
   5. Date of establishment of enterprises, taking into account decision 60/44(a) on the cut-off date, including enterprise names and consumption data, where available; and
9. To request bilateral and implementing agencies to return any balances from project preparation funding provided for stage I of HPMPs to the Multilateral Fund before a request for stage II project preparation funding might be considered.