Decision 94/34

Following additional discussions among interested members in the margins of the meeting, the Executive Committee decided:

1. To note the progress report on the implementation of the third tranche of the room air‑conditioning manufacturing and heat pump water heater sector plan (RAC sector plan) of stage II of the HCFC phase-out management plan (HPMP) for China;
2. To note:
   1. The agreed revision to the incremental operating cost incentive scheme for the RAC sector plan, as reflected in document UNEP/OzL.Pro/ExCom/94/29;
   2. That UNIDO would return, to the 94^th meeting, US $2,053,955, which had been calculated on an exceptional basis using the exchange rate on 13 May 2024, representing the remaining balances from stage I of the RAC sector plan, plus agency support costs of US $148,765 for UNIDO;
3. To request the Secretariat, in consultation with UNIDO, to present to the 97^th meeting a document describing an approach to estimate the tonnage of possible HFCs phased in by Multilateral Fund-assisted enterprises to meet the demand associated with the HCFC-based manufacturing capacity converted to R-290 under the HPMP RAC sector plan;
4. To approve the fourth tranche of the RAC sector plan of stage II of the HPMP for China, and the corresponding 2024–2025 tranche implementation plan, in the amount of US $7,524,667, consisting of US $6,300,000, plus agency support costs of US $441,000, for UNIDO and US $700,000, plus agency support costs of US $83,667, for the Government of Austria, on the understanding:
   1. That UNIDO and the Government of Austria would not transfer any of those approved funds to the Foreign Environmental Cooperation Centre of the Government of China until the Executive Committee had considered the report, to be submitted by UNDP, referred to in decision 94/11(b)(ii);
   2. That any unused incremental operating costs from stage II of the HPMP RAC sector plan would be returned to the Multilateral Fund taking into account sales of split R‑290 air-conditioning units that had taken place before 31 December 2026; and
   3. That UNIDO would submit, to the 97^th meeting, an update on consideration by the Government of China of the suggestions to facilitate the manufacturing of R‑290 split air-conditioning units described in paragraph 32 of document UNEP/OzL.Pro/ExCom/94/29.