Decision 97/68

Following the informal discussions, the Executive Committee decided:

1. To approve, in principle, stage I of the Kigali HFC implementation plan (KIP) for South Africa for the period from 2025 to 2029 to reduce HFC consumption by 14.60 per cent of the country’s baseline, in the amount of US $3,027,401, plus agency support costs of US $211,918, for UNIDO;
2. To note:
   1. The Government’s commitment to establish a ban on the import and manufacturing of small stand-alone commercial refrigeration equipment using HFCs by 1 January 2029;
   2. That 2,020,653 CO2-equivalent tonnes of HFCs would be deducted from the starting point for sustained aggregate reductions in HFC consumption to be established based on guidance provided by the Executive Committee;
   3. That the Government would submit a request for the HFC baseline revision to the Ozone Secretariat for consideration by the Implementation Committee under the Non-Compliance Procedure for the Montreal Protocol;
   4. That the Government would be allowed to submit a proposal for stage II of the KIP by 2028;
3. To note also:
   1. That the Government of South Africa 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;
   2. That, on the basis of the information provided in subparagraph (c)(i) above, the maximum allowable consumption limits for the remaining years of stage I of the KIP as contained in Appendix 2-A of the Agreement between the Government of South Africa and the Executive Committee, would be revised when the Committee considered the second tranche of the KIP;
4. To encourage the Government of South Africa to initiate, during the implementation period of stage I of the KIP, the development of a strategic approach to sustaining the phase-out of HFC consumption in the local assembly and installation subsector for commercial refrigeration, including a consideration of incentives and policy measures to sustain the achieved phase-out and taking into account document UNEP/OzL.Pro/ExCom 95/89, for possible inclusion in stage II;
5. To request the Fund Secretariat, in the event that the country’s baseline was revised, to update Appendix 2-A of the Agreement to include the revised figures for the Montreal Protocol HFC consumption limits, maximum allowable consumption for stage I of the KIP and deductions of HFCs under the Agreement, and to notify the Executive Committee of the resulting levels of maximum allowable consumption, with any necessary adjustments being made at the 99th meeting; 
6. To approve the Agreement between the Government of South Africa and the Executive Committee for the reduction in consumption of HFCs in accordance with stage I of the KIP, contained in annex LVII to the present report; and 
7. To approve the first tranche of stage I of the KIP for South Africa, and the corresponding tranche implementation plan, in the amount of US $1,720,164, plus agency support costs of US $120,411, for UNIDO.