Guide for the preparation of stage I of HCFC phase-out ... Work/countries/Guides... · Web viewout of the use of HCFC-141b in imported pre-blended polyol systems, including the

MULTILATERAL FUND FOR THE IMPLEMENTATION OF THE MONTREAL PROTOCOL

Inter-agency Coordination MeetingMontreal, 25 - 27 February 2020

MLF/IACM.2020/1/12

20 February 2020

GUIDE FOR PREPARATION OF STAGE I OF HCFC PHASE-OUT MANAGEMENT PLANS (HPMP)

(UPDATED, FEBRUARY 2020)

A guide for preparation of stage I of HCFC phase-out management plans

Note by the Fund Secretariat

The main purpose of HPMPs is to develop an overarching strategy that would allow Article 5 countries to meet the reduction levels in HCFC consumption as agreed by the Parties to the Montreal Protocol in decision XIX/6. In agreeing to the accelerated phase-out schedule (by way of an adjustment to the Protocol), the Parties were encouraged to promote the selection of alternatives to HCFCs that minimize environmental impacts, in particular impacts on climate, as well as meeting other health, safety and economic considerations.

At its 54th meeting, the Executive Committee adopted the guidelines for the preparation of HPMPs. This included an indicative outline and content of the HPMPs. Accordingly, the Secretariat has developed the following Guide to assist and facilitate the process of preparing stage I of the HPMPs, in line with these guidelines.

For the majority of Article 5 countries, the refrigeration and air-conditioning servicing sector continues to be the largest or the only consumer of ODS. For countries which have, in addition to servicing, enterprises that use HCFCs in manufacturing, the servicing sector also becomes critical as HCFCs start to be phased out from manufacturing sectors. This Guide has been developed particularly for Article 5 countries where most or all of the HCFCs are used in the refrigeration and air-conditioning servicing sector and have a relatively small HCFC-based manufacturing sector. However, this could also be useful to Article 5 countries with a broader HCFC use in the manufacturing sector and/or with HCFC production facilities.

This Guide has been developed based on the Multilateral Fund’s extensive experience in the preparation and implementation of country programmes, stand-alone project proposals, sectoral phase-out plans and national phase-out plans. It takes into account all policies and decisions of the Multilateral Fund, with a special emphasis on decisions adopted by the Executive Committee subsequent to the accelerated phase-out schedule as agreed by the Parties at their 19th meeting in 2007.

It also sets out the minimum information to be included in the various sections of the HPMP document, together with a brief explanation and the relevant Executive Committee decisions. Indications are also provided as to the maximum length of each section. It is suggested that any additional information, to the minimum required, be annexed to the HPMP. As much as possible, data should be provided in tabular form (in Word or Excel formats) and graphical representation of data and photographs should be avoided.

Bilateral and implementing agencies are invited to take note of the following when submitting an HPMP for consideration of the Executive Committee:

The entry of data in the Inventory of enterprises database (i.e., HCFC-based enterprises to be converted with the Multilateral Fund assistance) should be submitted no later than one month after the date of approval of the tranche for HPMP (decisions 77/5 and 79/22); the data must be fully consistent with that provided in the submission.

The final version of the HPMP document should be reviewed by the relevant bilateral and/or implementing agencies for quality as well as accuracy of data and information before submission for consideration by the Executive Committee. Furthermore, coordination among the lead agency and cooperating agency(ies) submitting and implementing an HPMP should be done during the HPMP preparation stage and should continue during the implementation stage.

An endorsement letter (transmittal letter) from the Government of the country whose HPMP is being requested must accompany the official submission by the final deadline. Any submission without this official letter will not be reviewed by the Secretariat and will not be considered an official submission.

The Multilateral Fund Secretariat 2


Requests for funding stage I of the HPMP have to be submitted to the Secretariat for consideration of the Executive Committee at the 16-week deadline for submission, in line with decision 81/30(a)(i).

The guide is updated after each meeting of the Executive Committee, where needed, in order to include relevant decisions which, provide further guidance on HPMP preparation.

To further facilitate the HPMP submission process, the first page of the Guide contains a “check-list” with the minimum mandatory requirements to be filled in by the bilateral and implementing agencies, for the consideration of stage I of the HPMP by the Executive Committee. A list of relevant documents that have been considered by the Executive Committee on which relevant decisions on HCFC phase-out have been adopted, is presented at the end of the Guide.

The Guide consists of the following main sections:

Checklist for submission of an HPMP Project cover sheet Executive summary Introduction HCFC consumption data Phase-out strategy Project coordination and management Plan of action (associated with the first tranche) Draft agreement Relevant sources of information Annex I: Gender mainstreaming checklist for projects Annex II: List of gender results and indicators



PROJECT COVER SHEETCOUNTRY NAMELEAD IMPLEMENTING AGENCYCO-OPERATING IMPLEMENTING AGENCY

SUBMISSION OF COMPLETE DOCUMENTATIONDocument Yes/No CommentsLetter of transmittalHPMPDraft agreementInventory of enterprises database (where applicable)Technical review (where applicable)Executive summary

HCFC REGULATIONS IN PLACERegulation Yes/No CommentsHCFC regulationHCFC licensing system (operational)HCFC quota system (operational

SUBMISSION OF ODS DATA REPORTSReport Yes/No Year reported data CommentsCountry programmeArticle 7 dataCalculated HCFC baseline (ODP tonnes)Starting point for aggregate reductions in HCFC consumption (ODP tonnes)Explain any data discrepancies:

HPMP DOCUMENTServicing only Manufacturing

onlyServicing and manufacturing

Freeze, 10%, 35% and 67.5%Main components included Yes/NoOverarching strategyStrategy and action plan for stage ICo-financing includedImpact on the environmentImplementation work programme and timeframe includedImplementation modalities (project monitoring unit)Consideration of the Multilateral Fund gender policy (completed checklist)

BUSINESS PLAN ALLOCATION AND FUNDING IN HPMP Yes/NoAllocation in endorsed consolidated business plan?Justification provided if not in business plan?Justification provided if plan value varies from proposed amount of funding?

2020 2021 2022 …. TotalBusiness plan allocation (US $)Proposed amount per HPMP (US $)Tranche completion date (month/year)

FUNDINGFunding consistent with guidelines (servicing sector, cut-off date, second stage, HCFC-141b contained in imported polyols, cost effectiveness, technology upgrade, foreign ownership, export to non-Article 5 countries)Funding of last tranche requested at the last year of implementationPriority given to manufacturing over servicing sector (if applicable)Justification for not addressing first HCFC-141b (if applicable)



PROJECT COVER SHEET

Relevant information on the project cover sheet

Part of the information included in the project cover sheet is extracted by the Secretariat from reports prepared and submitted by Article 5 countries (e.g., progress report on the implementation of the country programme; ODS data report submitted under Article 7 of the Protocol), or documents considered by the Executive Committee (e.g., business plans). The tables on targets and funding should be extracted from the HPMP document and the draft agreement. Therefore, it is important to verify that relevant data reports have been submitted on time, and to review the accuracy of the reported data.

The date of completion of the first tranche should also be included in the project cover sheet, as this information would be recorded in the Inventory of approved projects database, and will be used to assess performance of the implementation of the tranche.

Relevant information on HCFC-based enterprises that had received funding from the Multilateral Fund should be included in the Inventory of enterprises database.

Decision 52/5(f): Country programme implementation data had to be submitted in advance of the last meeting of the year and subsequent meetings as a precondition for the approval and release of funding for projects.

Decision 77/5(b): To further note that the Secretariat would pursue discussions with the bilateral and implementing agencies on the inclusion, in the inventory of enterprises database, of relevant information relating to all the HCFC-based enterprises that had received funding from the Multilateral Fund.

Decision 79/22(b): Further to note that the bilateral and implementing agencies would incorporate into the Inventory of enterprises database relevant information on the HCFC-based enterprises converted with the Multilateral Fund assistance.

EXECUTIVE SUMMARY (three to four pages)

The Executive Summary is expected to provide an overview of the key information contained in the HPMPs, including:

ODS regulations: clearly indicating the existence of an operational ODS import and export licensing system extended to HCFCs and whether import and export quotas for HCFCs have been issued, including a brief description of how this was implemented

HCFC consumption data and its sector distribution. This data could be presented in two separate tables, one presenting consumption data by HCFC for the last 5 years, and another presenting the consumption by sector/sub-sector from 2009 (the first baseline year)

HCFC baseline for compliance and starting point for aggregate reduction in HCFC consumption, including any adjustment related to the use of HCFC-141b contained in imported in pre-blended polyols (based on the 2007-2009 average amount of HCFC-141b contained in imported pre-blended polyols)

HCFC overarching strategy for the period 2013 to 2030

Strategy and phase-out plan for stage I of the HPMP including specific activities, incremental costs and implementation time frame; co-financing; estimated impact on the environment, including on the climate; and implementation modalities including the project management unit



This executive summary will be used as the basis for preparing the project evaluation sheet which highlights the important information of the project to be considered by the Executive Committee, and is therefore of vital importance. This information will be further described in the project document to be prepared by the Secretariat and submitted for consideration by the Executive Committee.

I. INTRODUCTION

I.1 Background information (one paragraph)

Background information contains data relevant to HCFC phase-out, inter alia, population and its distribution between urban and rural population, percentage of population connected to the electricity grid, and status of economic development.

I.2 ODS policy/legislative/regulatory and institutional framework

I.2.1 ODS legislation/regulations (two pages)

It is expected that Article 5 countries have established HCFC control measures (licensing and quota system) through legislation and regulations at the time of the submission of the HPMP. If this has not been completed, or is still in the process of being done, no funding may be approved for HPMP implementation in these countries. Lead and cooperating implementing agencies are encouraged to ensure that this condition is met, otherwise countries should be encouraged to defer submission of HPMPs in cases where this is clearly lacking.

The HPMP should contain a description of ODS legislation and/or regulations in place, including the operational licensing and quota systems addressing the import/export of HCFCs and the registration of importers and exporters where applicable. It should also describe how policies related to HCFCs, if any, are being implemented (such as bans on imports of HCFC-and/or HCFC-based equipment; bans on non-refillable HCFC containers) and other government initiatives (if any) in response to the accelerated phase-out of HCFCs. A description of key stakeholder involvement in the policy and regulatory regime should also be provided.

It is also suggested, wherever possible, to consider extending the licensing and quota systems to include the most commonly used foam blowing agents (if any) and refrigerants in the country, namely HFCs and HFC-based mixtures, hydrocarbons (HC-290 and HC-600A) and others. This would allow the country to simultaneously achieve ozone and climate benefits as it would limit the use of HFCs, enhance the monitoring system, influence the introduction of alternative refrigerants, and reduce the possibility of illegal import of refrigerants.

In addition to the operational ODS licensing and quota systems, due consideration should also be given to the introduction of controls on import (and export where applicable) of HCFC-based refrigeration and air-conditioning equipment (both new and/or second-hand). This policy is important as it will limit the growth and, subsequently, reduce the size of the installed base of HCFC-based equipment considering that imported HCFC-22 dependent systems will increase the future demand of HCFC-22 for servicing until the end of its lifetime. In addition, having these controls in place would influence the selection of technologies that may be phased in to replace HCFCs.

As many of the available alternatives to HCFCs used in the manufacturing and servicing sectors are classified with some level of flammability and/or toxicity, regulations, codes of practices, and standards (e.g., on storage, transportation, design of systems and components, maximum refrigerant charge, installation, servicing and disposal of equipment) must be adopted to ensure safe introduction of these technologies. With these standards in place, it will encourage the import of low-global warming potential (GWP)-based equipment as these became commercially available. Therefore, the necessary legal



framework to adopt, implement and enforce regulations, codes of practices, and standards to support the use of flammable alternatives should be determined before introduction of such alternatives is allowed.

Policy components of the HPMP should focus on capacity building for enforcement personnel rather than on development of ODS regulations or licensing systems. A concise description of the additional activities related to policy and legislation/regulations, which would differentiate these from activities already funded during HPMP preparation, should be included.

Decision 54/39(e): Consideration should be given to providing funding for assistance to include HCFC control measures in legislation, regulations and licensing systems as part of the funding of HPMP preparation as necessary and confirmation of the implementation of the same should be required as a prerequisite for funding implementation of the HPMP.

Decision 63/17: To ensure that adequate measures would be undertaken at the national level, the Committee decided to add a paragraph both to the template for draft agreements approved in decision 61/46 and to the draft agreements between Article 5 countries and the Executive Committee submitted to the Committee for consideration at its 63rd meeting. The paragraph read as follows: “That, for all submissions from the 68th meeting onwards, confirmation has been received from the Government that an enforceable national system of licensing and quotas for HCFC imports and, where applicable, production and exports is in place and that the system is capable of ensuring the country's compliance with the Montreal Protocol HCFC phase-out schedule for the duration of this agreement.”

I.3 Stakeholders (one page)

A brief description of key stakeholders involved in HCFC phase-out, inter alia, Government departments, the Ozone Unit, the project management unit established for the implementation of the RMP, TPMP and/or NPP, key non-governmental organizations including industrial associations, refrigeration and air-conditioning servicing associations, and committees established for the protection of the ozone layer.

Particular emphasis should be placed to the Ozone Unit and the project management unit, explicitly describing the main roles and responsibilities of each of the two stakeholders. Details on the work of refrigeration associations (several of which were established and became operational during the phase-out of CFCs) should be provided, giving due consideration to strengthening and involving them more closely in project implementation. Activities that these associations have undertaken in collaboration with the Ozone Unit during the CFC phase-out process should also be included.

I.4 ODS phase-out programme (three pages)

A review of the implementation of the previously approved ODS phase-out programmes examining in particular the lessons learned during implementation, and how these can be adapted for the phase-out of HCFCs should be provided.

I.4.1 Enterprises converted to HCFC technologies

The HPMP should provide a brief description of investment projects where enterprises were converted from CFC to HCFC technologies through the Multilateral Fund, the majority of which were related to the conversion from CFC-11 (and to a lesser extent CFC-12) to HCFC-141b as a foam blowing agent, and some on the replacement of CFC-113 by HCFC-141b. This description should include information on the current status of the project, whether it had already been converted to non-HCFC technology, including the annual amount of HCFCs used from 2007 onwards, as well as the production output of the enterprise(s) from 2007 onwards. Relevant information at the enterprise level should be included in the Inventory of enterprises database.



I.4.2 Refrigeration servicing sector

The HPMP should provide an analysis of the activities implemented through the RMPs, TPMPs and/or NPPs which includes, inter alia:

Training programmes for customs officers (e.g., number of officers trained, modifications introduced to the curricula of customs training programmes, long-term sustainability of training programmes).

Training and certification programmes for refrigeration service technicians (e.g., number of technicians trained and certified, modification to the curricula at technical/vocational schools, long-term sustainability of training programmes, establishment of refrigeration servicing associations).

Implementation and impact of recovery, recycling and reclamation programmes and the current status of the recovery/recycling/reclamation units distributed.

Implementation and impact of the technical assistance programme (i.e., distribution of tools for technicians, introduction of drop-in refrigerants, end-user conversions).

The project management unit.

Emphasis should be on lessons learned, issues encountered, how they were addressed, and the linkage between those activities and the new activities being proposed in the HPMP.

II. HCFC CONSUMPTION DATA

II.1 Methodology and validation (one page)

Briefly describe the methodology used to collect and validate the data on consumption of HCFCs (as pure chemicals) and HCFC-based chemicals (blends). Data sources may include, but are not limited to: customs services; HCFC importers and/or distributors; industry associations (including refrigeration servicing associations where available); data from HCFC-based enterprises; and importers of refrigeration and air-conditioning equipment.

HCFC consumption data collected through the field surveys should also be verified against the reports submitted by Article 5 countries to the Fund Secretariat (progress reports on the implementation of the country programme) and the Ozone Secretariat (Article 7 data reports). In cases of discrepancies between the HCFC consumption data collected during the preparation of the HPMP and that officially reported to the Fund and/or Ozone Secretariats, a detailed explanation of the reasons for such discrepancies should be provided. The HPMP surveys should be as comprehensive as possible, and should follow the chain of ODS supply, from the time the chemical is ordered and imported into the country until it is delivered to distributors, consumers (where applicable) and manufacturing enterprises.

Bilateral and/or implementing agencies should hold thorough discussions with relevant stakeholders in the countries on using a sound methodology to estimate the amount of HCFCs that would need to be phased out to meet at least the 2020 and 2025 phase-out targets.

Decision 34/18(a): To request the Secretariat and the implementing agencies not to submit project proposals which showed inconsistencies between project data and the latest reported sectoral consumption data.

Decision 41/16: To request implementing agencies to ensure that they had verified with the National Ozone Unit the consistency of Article 7 data, the country programme implementation data and the project phase-out data, prior to transmitting projects to the Secretariat for review.

Decision 52/5(f): Country programme implementation data had to be submitted in advance of the last meeting of



the year and subsequent meetings as a precondition for the approval and release of funding for projects.

II.2 HCFC consumption data (four pages, including tables)

Based on the field surveys and data analysis, the following information is required:

Consumption data for each HCFC imported (as a pure substance and/or contained in blends) for the last five years in ODP and metric tonnes (preferably in Word or Excel tables). In cases of a substantial change in the levels of HCFC consumption from a previous year, a detailed explanation of the reasons for such change should be provided (e.g., stockpiling, HCFC in blends previously not reported).

A table listing each HCFC imported by each registered importer in the most recent years.

The HCFC baseline for compliance (i.e., average of the HCFC consumption reported under Article 7 in 2009 and 2010, measured in ODP tonnes).

The starting point for aggregate reduction in HCFC consumption. The starting point as referred to in the HPMP is a calculated figure, which is based on the official HCFC baseline for compliance, and adjusted to include, for those Article 5 countries importing HCFC-141b pre-blended polyols, the HCFC-141b contained therein that had not been counted as consumption under Article 7.

Decision 61/47(c) (i)(ii): With regard to the import of HCFC-141b contained in pre-blended polyols which had not been counted as consumption under Article 7, to request Article 5 countries that wished to request assistance for the phase-out of such imports: (i) to include in the overarching strategy for their HCFC phase-out management plans (HPMPs) an indicative list of all the foam enterprises established prior to 21 September 2007 that used imported polyol systems, including the amount of HCFC-141b contained therein; (ii) to include in the starting point for aggregate reduction in HCFC consumption the annual amount of HCFC-141b contained in imported polyol systems during the 2007-2009 period.

Decision 63/14: The calculation of the starting points for aggregate reductions in HCFC consumption for HPMPs should be based on the latest accepted HCFC consumption data reported under Article 7, consistent with decision 60/44.

Decision 68/42(c): To encourage relevant Article 5 countries to consider establishing a national system for recording the amounts of HCFC-141b contained in pre-blended polyols imported and/or exported (where applicable) to support the ban on imports of pure HCFC-141b, as well as that contained in pre-blended polyols, to be issued once all the foam enterprises had been converted, and to facilitate monitoring of these enterprises to sustain the phase-out of HCFC-141b.

Data on availability of HCFCs, HCFC blends, including alternative chemicals (i.e., HFC-based and hydrocarbon-based blowing agents and refrigerants), and their current prices (in US $/kg).

In cases where large fluctuations in HCFC consumption have been reported, a comprehensive explanation on the reasons for those fluctuations should be provided (e.g., recent increase in imports of new HCFC-based refrigeration and air-conditioning systems; amounts of HCFC consumption that may have been imported and stockpiled for future years’ use, and HCFC-141b contained in imported pre-blended polyols reported as consumption). This explanation should be substantiated with field data, such as, the amount of HCFC-based equipment in operation, number of new and/or second-hand HCFC-based equipment imported on a yearly basis, and the population connected to the electricity grid.



II.3 Sector distribution of HCFC (five pages including tables)

Three chemicals, namely HCFC-22, HCFC-141b and HCFC-142b account for more than 99 per cent of the total consumption of all HCFCs in Article 5 countries. These HCFCs are used mainly in the manufacturing of foam products and refrigeration equipment (in several countries) and in the refrigeration servicing sub-sector (in all countries). The remaining consumption of HCFCs is used in specialized applications in the aerosol, fire extinguisher and solvent sectors.

The HPMP should include, at minimum, a table summarizing HCFC consumption distributed by sectors and disaggregated by substance for the year of the survey and for the baseline years (2009 and 2010). For those Article 5 countries using HCFC-141b contained in imported pre-blended polyols, the table should have separate rows/columns showing the amounts of HCFC-141b contained in these polyols, from 2007. The parameters and assumptions used to determine the distribution of HCFCs among the refrigeration and the air-conditioning servicing sub-sectors should also be provided.

II.3.1 HCFC-based manufacturing sector

A brief description of all manufacturing enterprises using HCFCs currently in operation is required. Consistent with the established practice, the following information is required at the enterprise level:

Name of the enterprise and date of establishment, taking into account guidelines on the cut-off date for eligible enterprises.

Main products manufactured (e.g., rigid insulation panels, integral skin foam, manufacturing of domestic and/or commercial refrigerators, assembly of air conditioners).

Levels of current consumption of each HCFC used.

Whether the enterprise was previously funded for conversion to HCFC technologies (i.e., second-stage conversion).

Description of modifications to production lines established prior to 21 September 2007.

Level of exports to non-Article 5 countries.

Non-Article 5 ownership component.

In cases where there are a large number of very-small-consuming enterprises (with each having an HCFC consumption of less than one metric tonne) in operation in a particular sub-sector, the information could be clustered and presented in a tabular form. The level of HCFC consumption would need to be confirmed at the enterprise level either through import or purchase records. In the absence of this information, the level of the eligible incremental cost cannot be assessed.

In cases where HCFC-141b contained in pre-blended polyols is imported into the country, an indicative list of all the foam enterprises established prior to 21 September 2007 using pre-blended polyol systems, including the amount of HCFC-141b contained therein from 2007 to 2009 and the source (pre-blending systems house/systems distributor and country of origin), should be provided. There should also be a description of the planned conversion approach for these enterprises, as well as the alternative technology that will be used for conversion.

Decision 16 th ExCom : ODS consumption should be calculated on the basis of either the year, or an average of the three years, immediately preceding project preparation (paragraph 32b of ExCom/16/20).

Decision 63/15: That Article 5 countries with HCFC consumption reported under Article 7 solely in the refrigeration servicing sector and with foam enterprises relying exclusively on imported HCFC-141b pre-blended polyol systems not reported as consumption could, on an exceptional and case-by-case basis, and consistent with decision 61/47, submit a funding request for the conversion of those enterprises during implementation of stage I of the HCFC phase-out management plan (HPMP), on the understanding that:(a) there were no systems houses



in the country concerned, and funding for the conversion of any of the foam enterprises was not requested but fully described in the submission of stage I of the HPMP; (b) all foam enterprises and the annual amount of HCFC-141b contained in imported pre blended polyol, to be calculated based on the 2007-2009 average consumption excluding those years in which no production was reported, would be included therein; (c) the eligibility of the foam enterprises would be determined at the time of the submission of the project, and the funding level would be based on the amount of HCFC-141b contained in imported pre-blended polyol systems as defined under sub-paragraph (b) above; and (d) the project proposal would completely phase out the use of HCFC-141b in imported pre blended polyol systems and would include a commitment from the country to put in place, by the time the last foam manufacturing plant had been converted to a non-HCFC technology, regulations or policies banning the import and/or the use of HCFC-141b pre blended polyol systems.

II.3.2 Refrigeration servicing sector

An assessment of the current situation of the refrigeration and air-conditioning servicing sector, including (but not limited to):

The estimated number of refrigeration and air-conditioning technicians involved in servicing refrigeration and air-conditioning equipment and their technical qualifications.

The number of registered and non-registered service workshops, and their average annual consumption of HCFCs.

The estimated number of refrigeration and air-conditioning systems/units in operation by type (e.g., domestic, commercial, industrial, air-conditioning); and type and amount of refrigerants being used.

Vocational and/or technical institutions providing training to technicians.

Information on the existing technician certification programmes.

The estimated number of refrigeration equipment imported annually.

III. PHASE-OUT STRATEGY

The HPMP should contain the overarching strategy for phasing out HCFC consumption, as well as the strategy and phase-out plan for meeting at least the 35 per cent reduction in 2020 and the 67.5 per cent reduction in 2025. Accelerated HCFC phase-out faster than the Montreal Protocol schedule would be considered on a case-by-case basis.

Decision 60/15: Projects which accelerated the phase-out of consumption of HCFCs could be considered on a case-by-case basis for low-volume-consuming countries that had a strong national level of commitment in place to support accelerated phase-out.

III.1 Overarching strategy (four pages, including tables)

The description of the overarching strategy for phasing out HCFC consumption should be presented, and could include, inter alia:

Policy instruments needed to reduce the supply and/or demand of HCFCs, such as import quotas, price controls, ban on imported HCFC-based equipment, ban on imported HCFC-141b pre-blended polyols, restrictions on high GWP non-HCFC alternatives (or restrictions to low GWP alternatives).

Staged approach to reduce HCFC consumption to meet the HCFC phase-out targets as agreed by the Parties.



Proposed levels of reduction in HCFC consumption and implementation time frames (up to 2030) based on the country’s actual needs and its current consumption situation.

Coordination and synergies with other multilateral environmental agreements, in particular those related to climate change and chemical management.

Identification of main projects and activities required to completely phase out HCFC consumption and their estimated (preliminary) costs, noting that the country’s commitment and funding will be, at this time, provided only for the implementation of the first stage.

III.2 First stage implementation programme

Detailed description of the phase-out strategy, plan of action and phase-out activities required to meet the 2020 and 2025 phase-out targets. It should describe a time frame for the implementation of the planned activities based on the country’s actual needs and its current consumption situation.

III.2.1 HCFC manufacturing sector (10 pages, including tables)

Priority should be given to the phase-out of HCFC-141b over other HCFCs with lower ODP values. However, proposals for the phase-out of HCFCs with ODP values lower than HCFC-141b could be considered where national circumstances and priorities required their submission in order to comply with the 2020 and 2025 control measures.

Consistent with all Multilateral Fund policies and guidelines for the conversion of HCFC-based manufacturing enterprises to non-HCFC technologies, the HPMP should include, in addition to the information described on Section II.3.1 (HCFC-based manufacturing sector) above, the following information:

Equipment baseline (including for each unit brand, model, capacity and year of installation).

Alternative technologies assessed and the reasons for the selection of the technology proposed.

A detailed assessment of the incremental costs, giving due consideration to technological upgrades and/or capacity increase.

Step-by-step analysis on the need for funding second-stage conversion enterprises in stage I of the HPMP following the methodology indicated in decisions 60/44(b) and 62/16.

Implementation modalities.

This analysis should be presented as a sectoral phase-out plan, covering all enterprises that will be converted in stage I of the HPMP.

The selection of alternative technologies should be undertaken after a comprehensive and detailed review by all stakeholders of all available technologies, including the results of projects that demonstrate alternative technologies in the foam and refrigeration/air-conditioning sectors that were implemented during the preparation and submission of HCFC phase-out activities in those sectors. Due consideration must be given to all internal and external factors specific to each enterprise to allow for the introduction of flammable and/or toxic alternatives. When a flammable alternative technology is selected, the following information should be provided:

Local and/or national regulations governing the use of flammable substances.



The feasibility of enterprises to be able to convert and operate in their current equipment location within the project implementation timeframe.

Information on the economic sustainability and the ability of the enterprise to safely operate a flammable technology.

Assurances that the counterpart contributions are in place, in cases where counterpart contributions are needed to ensure implementation.

In cases where counterpart funding is required, this should be fully discussed with the beneficiary enterprise and a commitment letter for counterpart funding should be submitted. The requests for technical assistance, training, contingency and project management unit costs should be rationalized.

Decision 60/44(b): To apply the following principles in regard to second-stage conversion projects for the first stage of HCFC phase-out management plan (HPMP) implementation: (i) full funding of eligible incremental costs of second-stage conversion projects will be considered in those cases where an Article 5 Party clearly demonstrates in its HPMP that such projects are necessary to comply with the Montreal Protocol HCFC targets up to and including the 35 per cent reduction step by 1 January 2020 and/or are the most cost-effective projects measured in ODP tonnes that the Party concerned can undertake in the manufacturing sector in order to comply with these targets; and (ii) funding for all other second-stage conversion projects not covered under paragraph (b)(i) above will be limited to funding for installation, trials, and training associated with those projects.

Decision 61/47: (c) With regard to the import of HCFC-141b contained in pre-blended polyols which had not been counted as consumption under Article 7, (iii) also to include in their HPMPs a sector plan for the complete phase-out of the use of HCFC-141b in imported pre-blended polyol systems, including the cost and funding schedule, taking into account that the share of imported polyol within the HPMP might need support under a schedule beyond 2015, on the understanding that quantities of HCFC-141b in imported pre-blended polyol systems that had not been included in the overarching strategy for the HPMP would not be eligible for funding; and (iv) to include in the sector plan a commitment from the country to put in place, by the time the last foam manufacturing plant had been converted to a non-HCFC technology, regulations or policies banning the import and or the use of HCFC-141b pre-blended polyol systems; (d) that Article 5 Parties with eligible enterprises manufacturing HCFC-141b pre-blended polyol systems would be provided assistance calculated on the basis of consumption of HCFC-141b sold domestically, on the understanding that full consumption of HCFC-141b by those enterprises manufacturing pre-blended polyol systems would be deducted from the starting point.

Decision 62/12: (a) To request bilateral and implementing agencies, when submitting activities to phase out HCFC-22 used in the manufacture of refrigeration and air-conditioning equipment, to estimate the total future amount of HCFC-22 that could potentially be required until 2020 for servicing such equipment; (b) to request bilateral and implementing agencies, when submitting activities to phase out HCFC-22 used in the refrigeration servicing sector, to clearly demonstrate how the proposed activities would reduce the growth rate in the servicing sector and contribute to meeting the reduction steps in 2013 and 2015; and (c) to consider projects for the phase-out of HCFC-22/HCFC-142b used for the manufacture of extruded polystyrene (XPS) foam when it was clearly demonstrated that they would be required by national circumstances and priorities to comply with the 2013 and 2015 control measures, and to consider all other XPS foam projects after 2014.

Decision 62/16: Project proposals that included requests for second-stage conversions should provide the following information as part of the justification required by decision 60/44:(a) the proportion of HCFCs consumed by enterprises that received assistance under the Multilateral Fund for CFC phase-out, as a percentage of: (i) total HCFC consumption; (ii) total HCFC consumption in the manufacturing sector; and (iii) total consumption of HCFC-141b in the foam sector; and (b) the estimated cost-effectiveness value, in ODP and metric tonnes, of the proposed second-stage conversion projects as compared with the estimated cost-effectiveness of phasing out HCFC consumption in other manufacturing enterprises in all sectors.

Decision 66/50: (b) That conversion of new HCFC foam production lines in second-stage conversion enterprises established after the enterprises had been converted to a non-CFC alternative were entitled to full funding of eligible incremental costs provided that the new lines were established prior to the cut-off date of 21 September 2007, and on the understanding that the cost of replacement or retrofit of any equipment item installed after the cut-off date would not be eligible for funding; and (c) to consider approving full funding of eligible incremental costs for second-stage conversion projects to phase out HCFC-141b contained in imported



polyols on a case by case basis, on the understanding that the governments concerned agreed to make commitments to ban imports of HCFC-141b, both in bulk and in pre-blended polyols, by a specific date to be included within the time-frame of the relevant stage of the HCFC phase-out management plan agreement.

Decision 74/20 (a)(iii): To request bilateral and implementing agencies to include in the submission of any future stage of an HPMP for which a low-GWP alternative to HCFCs had been selected detailed information from thesuppliers on how and when an adequate supply of the technology would be made available to the country.

III.2.2 HCFC refrigeration servicing sector (10 pages, including tables)

For the refrigeration servicing sector, the HPMP should describe the strategy to reduce the dependence on HCFCs, with a view to proposing specific activities taking into consideration the infrastructure previously established and the lessons learned from the implementation of RMPs, TPMPs and/or NPPs. This strategy could include measures such as legal and economic incentives and disincentives; training programmes for customs officers and provision of ODS identification kits; training and certification programmes for refrigeration servicing technicians; technical assistance activities (e.g., introduction of alternative non-HCFC refrigerants, recovery and recycling operations, cost-effective end-user conversions); and public awareness and information dissemination activities.

The assembly and installation of HCFC-based refrigeration equipment should be considered and funded in line with decision 60/44. In cases where the magnitude of assembly operations and levels of HCFC consumption are relatively large and could be considered as part of the assembly/installation of refrigeration equipment, comprehensive technical information would need to be provided. Technical assistance activities cannot be funded outside those agreed under decision 60/44.

An implementation timetable including the proposed levels of HCFC phase-out should be included.

Other considerations that should be taken into account when developing a strategy for the servicing sector may include the following:

Identifying the main barriers to the introduction of alternative refrigerants and technologies and proposing activities in the HPMP that could remove these

Enhancing local capacity to operate with alternatives that minimize climate impact through legislation, codes of good practice and standards, systematic recording of refrigerants and their handling through the Custom authorities; and developing other measures

Identifying activities that would influence technology change especially for new, factory charged equipment

Possibilities to reduce the charge size during the design, assembly and installation of refrigeration equipment

Developing incentives to encourage equipment owners to improve equipment performance and energy use

For larger systems, identifying ways to measure and identify main sources of refrigerant loss and how these may be reduced/prevented

Taking into account safety aspects of the use of flammable alternatives, particularly for retrofitting



Where end-user incentive schemes are included in the HPMP, ensuring that these are time-limited and one-off demonstration and pilot projects directed for end-users to transition to zero- or low GWP alternatives and/or reduce use of controlled substances under existing or future stages of HPMPs prioritizing such activities for low-volume consuming (LVC) countries, and reporting on the results of these incentive schemes once they are completed

Decision 62/14(a)(b): To request bilateral and implementing agencies, when submitting projects related to the installation, assembly and charging sub-sector, to demonstrate that each of those enterprises participating in the project had invested in equipment, development of products, or training of personnel specific to HCFC technology significantly exceeding the level of such investments prevalent in the service sector; and that the activities foreseen for those enterprises represented incremental costs.

Decision 72/17: To include in the approval of HCFC phase-out management plans, tranches, projects or activities that proposed the retrofit of HCFC based refrigeration and air-conditioning equipment to flammable or toxic refrigerants that the Executive Committee notes that, if the country engages in retrofitting HCFC-based refrigeration and air-conditioning equipment to flammable or toxic refrigerants and associated servicing, it does so on the understanding that they assume all associated responsibilities and risks.

Decision 72/41: (b) To invite relevant bilateral and implementing agencies to consider the information contained in documents UNEP/OzL.Pro/ExCom/70/53/Rev.1 and UNEP/OzL.Pro/ExCom/72/42 when assisting Article 5 countries in the preparation and implementation of activities in the refrigeration servicing sector contained in their HCFC phase-out management plans (HPMPs); and (c) to encourage Article 5 countries, when implementing their HPMPs, to consider, as needed and feasible: (i) the development of regulations and codes of practice, and the adoption of standards for the safe introduction of flammable and toxic refrigerants given the potential risk of accidents and negative effects on health associated with their use; (ii) measures to limit the import of HCFC-based equipment and to facilitate the introduction of energy-efficient and climate-friendly alternatives; and ,(iii) focusing activities in the refrigeration servicing sector on training of technicians, good practices, the safe handling of refrigerants, containment, recovery and recycling and reuse of recovered refrigerants rather than retrofitting.

Decision 73/34: If a country were to decide, after taking into account decision 72/17, to proceed with retrofits that used flammable substances in equipment originally designed for non-flammable substances, it should be done only in accordance with the relevant standards and protocols.

Decision 84/84(b): To consider time-limited and one-off demonstration and pilot projects directed to end users to transition to zero- or low global-warming-potential alternatives and/or reduce use of controlled substances under existing or future stages of HPMPs, prioritizing those activities in low-volume-consuming countries, on a case-by-case basis, taking into consideration that the following circumstances had to prevail before demonstration and pilot projects could be directed to end users, in line with the guidelines for end-user conversion in the commercial refrigeration sector adopted in decision 28/44: (i) production and import control on HCFC and HCFC-based equipment had to be in place and effectively enforced, and the deployment of new HCFC components restricted; (ii) the country’s major remaining consumption had to be for the servicing of refrigeration and air-conditioning equipment; (iii) comprehensive data on the profile of all remaining consumption had to have been determined and made available to the Executive Committee; (iv) there had to be no other possible activities that would allow the country to meet its HCFC control obligations, or the comparative consumer price of HCFCs, relative to substitute refrigerants had to have been high for at least nine months and predicted to continue to increase; (c): To request bilateral and implementing agencies, when designing and submitting demonstration and pilot projects directed to end users as indicated in sub paragraph (b), above: (i) to provide information on how the country would implement the domestic policy framework to support and sustain introduction and the scaling up of the new technology and/or practice;(ii ) to provide information on the number of enterprises in that country or region that could be interested in transition as a result of the programme being undertaken, and on the phase-out of controlled substances and the phase in of alternative refrigerants; (iii) to illustrate and provide the methodology for estimating the expected scalability of the alternative technology or practice being proposed in light of local market conditions; (iv) to include a plan for communicating the results of the project to relevant stakeholders to assist in their uptake without using



Multilateral Fund resources; (v) to prioritize refrigeration and air-conditioning applications where the project could contribute to acceleration of the phase-out of the controlled substance;(vi) to follow a stepwise approach to ensure early implementation of enabling conditions that would leverage the benefits of such projects;(vii) to explain how the projects would be implemented and linked with other HPMP activities such as training, capacity-building and technical assistance for adoption of the proposed alternative technology in a cost-effective manner;(viii) to provide information on the estimated level of co-financing by all the beneficiary end users participating in the incentive scheme and to describe the actions they would undertake to promote the adoption of the proposed technology;(ix) to ensure that, if the country engaged in the retrofitting of HCFC-based refrigeration and air-conditioning equipment to flammable or toxic refrigerants and associated servicing, it did so on the understanding that they would assume all associated responsibilities and risks, and that the retrofit of equipment would be done only in accordance with the relevant standards and protocols, in line with decisions 72/17 and 73/34; d): To request bilateral and implementing agencies to submit detailed reports on the results of existing and future end-user projects once they have been completed, to allow the Secretariat to develop fact sheets to inform future projects

III.2.3 Other impacts on the environment including on the climate (two pages)

The HPMP should include the potential impact on the environment, in particular on the climate, associated with the phase-out of HCFCs, taking into account the GWP of the substances, energy efficiencies, equipment and climate circumstances.

Decision 54/39(g)(v): Cost and benefit information based on the full range of alternatives considered, and associated ODP and other impacts on the environment including on the climate, taking into account global-warming potential, energy use and other relevant factors.

Decision XIX/6: 9. To encourage Parties to promote the selection of alternatives to HCFCs that minimize environmental impacts, in particular impacts on climate, as well as meeting other health, safety and economic considerations; 11. To agree that the Executive Committee, when developing and applying funding criteria for projects and programmes, and taking into account paragraph 6, give priority to cost-effective projects and programmes which focus on, inter alia: (a) phasing-out first those HCFCs with higher ozone-depleting potential, taking into account national circumstances; (b) substitutes and alternatives that minimize other impacts on the environment, including on the climate, taking into account global-warming potential, energy use and other relevant factors; (c) small and medium size enterprises.

III.2.4 Consideration of the Multilateral Fund gender policy in HPMP preparation (one page)

During the preparation of the HPMP, description of the overarching strategy and preparation of implementation plans, due attention should be given to identifying entry points to promote gender equality and women’s empowerment (GEWE) activities to be implemented as part of the HPMP. Annexes I and II provide a checklist that may be used for this purpose, and a table providing potential indicators that may be used during the implementation.

Decision 84/92(d): To request bilateral and implementing agencies: (i) to apply the operational policy on gender mainstreaming throughout the project cycle, beginning with projects proposed for consideration at the 85th meeting.

III.2.5 Co-financing (one page)

HPMPs should also address the extent to which the benefits beyond those associated with the ODP value of phasing out HCFC could be addressed through financial incentives and opportunities for co-financing and how such programmes could be implemented.



Decision 54/39(h): Countries and agencies were encouraged to explore potential financial incentives and opportunities for additional resources to maximize the environmental benefits from HPMPs pursuant to paragraph 11(b) of decision XIX/6 of the Nineteenth meeting of the Parties.

Decision 74/17(b): To encourage low-volume-consuming (LVC) countries, through the bilateral and implementing agencies, to consider the information provided in the report on resource mobilization for climate benefits (UNEP/OzL.Pro/ExCom/74/12 and Corr.1,) submitted by UNEP when seeking additional resources for climate co-benefits during the implementation of stage I and future stages of HCFC phase-out management plans, while noting that the climate-related activities included therein might not be the direct responsibility of the national ozone units.

III.2.6 Business plan

The amount of HCFCs to be phased-out and the level of funding requested under stage I of the HPMP should be comparable to the amounts contained in the consolidated business plan of the Multilateral Fund. A strong justification should be provided for any activity in the HPMP that was not included in the business plan of the relevant bilateral and/or implementing agencies.

Decisions for funding phase-out of HCFC consumption

All decisions taken by the Executive Committee since its inception apply to HPMPs unless otherwise decided.

Decision 53/37: (d) That the existing policies and guidelines of the Multilateral Fund for funding the phase-out of ODS other than HCFCs would be applicable to the funding of HCFC phase-out unless otherwise decided by the Executive Committee in light of, in particular, decision XIX/6 of the Nineteenth meeting of the Parties.

Decision 62/10 , Accelerated phase-out of HCFCs beyond 2020 for LVC countries and increase in HPMP funding: For the HPMPs which addressed phase-out of HCFCs ahead of the Montreal Protocol schedule and had been submitted in line with decision 60/15, the total funding available for achieving 100 per cent phase-out would be extrapolated from that available for meeting the 35 per cent reduction in consumption as prescribed in the table in subparagraph (c)(xii) of decision 60/44

Decision 60/44 , criteria for funding HCFC phase-out in the consumption sector in Article 5 countries

Cut-off date (decision 60/44(a))

Not to consider any projects to convert HCFC-based manufacturing capacity installed after 21 September 2007.

Eligible incremental costs of HCFC phase-out projects (decisions 60/44(f), 61/47, 62/10, 62/13)

To apply the following principles in regard to eligible incremental costs of HCFC phase out projects for the first stage of HPMP implementation to achieve the 2013 and 2015 HCFC phase out compliance targets, subject to a review in 2013:

(a) When preparing HCFC phase-out projects in the foam, refrigeration and air conditioning sectors, bilateral and implementing agencies shall use the technical information contained in document UNEP/OzL.Pro/ExCom/55/47 as a guide;

(b) The current cost-effectiveness threshold values used for CFC phase-out projects in paragraph 32 of the final report of the 16th meeting of the Executive Committee (document UNEP/OzL.Pro/ExCom/16/20), to be measured in metric kilogrammes, shall be used as guidelines during the development and implementation of the first stage of HPMPs;

(c) That countries will have the flexibility to allocate the approved funding from incremental



operating costs to incremental capital costs and to allocate up to 20 per cent of the approved funding for incremental capital costs to incremental operating costs, as long as the use of the flexibility does not change the intent of the project. Any reallocation should be reported to the Executive Committee;

(d) Funding of up to a maximum of 25 per cent above the cost effectiveness threshold will be provided for projects when needed for the introduction of low global warming potential (GWP) alternatives.

HCFC phase-out in the foam sector

(e) Incremental operating costs for projects in the foam sector will be considered at US $1.60/metric kg for HCFC-141b and US $1.40/metric kg for HCFC-142b consumption to be phased out at the manufacturing enterprise;

(f) For group projects linked to systems houses, incremental operating costs will be calculated on the basis of the total HCFC consumption to be phased out for all downstream foam enterprises;

(g) The Executive Committee will consider, on a case-by-case basis, funding higher levels of incremental operating costs than that indicated in paragraph (f)(v) above when required for the introduction of low-GWP water-blown technology;

(h) The Executive Committee set the cost-effectiveness threshold for rigid insulation refrigeration foam at US $7.83/kg with a maximum of up to 25 per cent above this threshold for low global warming potential alternatives.

HCFC phase-out in the refrigeration and air-conditioning manufacturing sector

(i) Incremental operating costs for projects in the air-conditioning sub-sector will be considered at US $6.30/metric kg of HCFC consumption to be phased out at the manufacturing enterprise;

(j) Incremental operating costs for projects in the commercial refrigeration sub sector will be considered at US $3.80/metric kg of HCFC consumption to be phased out at the manufacturing enterprise;

(k) Consistent with decision 31/45 of the Executive Committee, incremental operating costs will not be considered for enterprises categorized under the refrigeration equipment assembly, installation and charging sub-sector;

HCFC phase-out in the refrigeration servicing sector

(l) Article 5 countries that have total HCFC consumption of up to 360 metric tonnes must include in their HPMP, as a minimum:

(i) A commitment to meeting, without further requests for funding, at least the freeze in 2013 and the 10 per cent reduction step in 2015, and if the country so decides, the 35 per cent reduction step in 2020. This shall include a commitment by the country to restrict imports of HCFC-based equipment, if necessary, to achieve compliance with the reduction steps and to support relevant phase-out activities;

(ii) Mandatory reporting, by the time funding tranches for the HPMP are requested, on the implementation of activities undertaken in the refrigeration servicing sector and in the manufacturing sector when applicable, in the previous year, as well as a thorough and comprehensive annual work plan for the implementation of the following activities associated with the next tranche;

(iii) A description of the roles and responsibilities of major stakeholders, as well as the lead



implementing agency and the cooperating agencies, where applicable;

(m) Article 5 countries that have a total HCFC consumption of up to 360 metric tonnes will be provided funding consistent with the level of consumption in the refrigeration servicing sector as shown in the table below, on the understanding that project proposals will still need to demonstrate that the funding level is necessary to achieve the 2013 and 2015 phase out targets, and if the country so decides, the 2020 phase-out targets:

Consumption (metric tonnes)*

Funding up to 2015 (US $) Funding up to 2020 (US $)

>0 <15 51,700 164,50015 <40 66,000 210,00040 <80 88,000 280,00080 <120 99,000 315,000120 <160 104,500 332,500160 <200 110,000 350,000200 <320 176,000 560,000320 <360 198,000 630,000

(*) Level of baseline HCFC consumption in the refrigeration servicing sector

(n) Article 5 countries that have total HCFC consumption of up to 360 metric tonnes and that receive funding consistent with the above table, will have flexibility in utilizing the resources available to address specific needs that might arise during project implementation to facilitate the smoothest possible phase-out of HCFCs;

(o) Article 5 countries that have a total HCFC consumption of up to 360 metric tonnes, used in both the manufacturing and refrigeration servicing sectors, could submit HCFC phase out investment projects in accordance with prevailing policies and decisions of the Multilateral Fund, in addition to funding for addressing HCFC consumption in the servicing sector;

(p) Article 5 countries that have total HCFC consumption above 360 metric tonnes should first address consumption in the manufacturing sector to meet the reduction steps in 2013 and 2015. However, if such countries clearly demonstrate that they require assistance in the refrigeration servicing sector to comply with these targets, funding for these activities, such as training, will be calculated at US$4.50/metric kg, which will be deducted from their starting point for aggregate reductions in HCFC consumption;

HCFC phase-out in the aerosol, fire extinguisher and solvent sectors

(q) The eligibility of incremental capital and operating costs for HCFC phase out projects in the aerosol, fire extinguisher and solvent sectors will be considered on a case-by-case basis.

Accelerated phase-out of HCFCs beyond 2020 for LVC countries and increase in HPMP funding

For the HPMPs which addressed phase-out of HCFCs ahead of the Montreal Protocol schedule and had been submitted in line with decision 60/15, the total funding available for achieving 100 per cent phase-out would be extrapolated from that available for meeting the 35 per cent reduction in consumption as prescribed in the table in sub-paragraph f (xii) of decision 60/44.

Last funding tranche of multiyear HCFC phase-out plans (decision 62/17)

The bilateral and implementing agencies were requested, when preparing multi-year HPMPs, to ensure that the last tranche comprised 10 per cent of the total funding for the refrigeration servicing sector in the agreement and was scheduled for the last year of the plan.



IV. PROJECT COORDINATION AND MANAGEMENT (three pages)

A description of the management structure for the implementation of the HPMP, with particular emphasis on the implementation modalities of stage I of the HPMP. This should include, inter alia:

A clear description of procedures to monitor progress in the implementation of all HCFC phase-out activities. These procedures should have been discussed and agreed between all bilateral and implementing agencies and stakeholders involved in the implementation of the HPMP.

A clear indication of the roles and responsibilities (including reporting requirements) of key Government bodies, the Ozone Unit, industry associations, academic institutions and consultants.

The designation of a Government entity that would be accountable for the overall management, including financial and substantive elements of the implementation of the HPMP.

The roles and responsibilities of the lead implementing agency and the cooperating implementing agency(ies) (where applicable) in the management and implementation of the HCFC phase-out proposal.

Specific actions to ensure independent confirmation of the achievement of the performance targets specified in the HPMP, including a periodic evaluation to be included in the Monitoring and Evaluation Work Programme of the Fund.

If funding is being requested for the purpose of a project management unit (PMU), the stage I proposal should include the overall set of activities expected to be undertaken by the PMU and the associated funding. Both the activities undertaken and the funding used by the PMU will be monitored in detail at the time of each tranche request, in line with decision 83/61.

Decision 53/37(e): Institutions and capacities in Article 5 countries developed through Multilateral Fund assistance for the phase-out of ODS other than HCFCs should be used to economize the phase out of HCFCs, as appropriate.

Decision 54/39(i): HPMPs should address: (i) the use of institutional arrangements mentioned in decision 53/37(e) and (f); (ii) the roles and responsibilities of associations of refrigeration technicians and other industry associations and how they could contribute to HCFC phase-out.

Decision 83/61 (b): To request bilateral and implementing agencies, when submitting tranche funding requests for HCFC phase-out management plans, to include: in the tranche implementation plan, the specific activities that would be implemented by the PMU, and the associated funding; and in the implementation report of the previous tranche, the activities implemented by the PMU and the associated funding disbursed.

V. PLAN OF ACTION OF THE FIRST TRANCHE (three pages)

The HPMP should also include the plan of action to implement the activities identified as part of the first funding tranche. It must include:

A detailed description of the activities to be implemented with regard to regulations, conversion of the manufacturing sector (where applicable), the refrigeration servicing sector, and the project monitoring unit.

Quantifiable targets should be included to the extent possible.

The level of funding associated with each proposed activity.



In line with decision 83/16, the plan of action for the first tranche should include the specific activities that would be implemented by the PMU, and the associated funding.

The implementation plan should also include activities that would address GEWE systematically during this period to implement the gender policy of the Multilateral Fund, in line with decision 84//92. Annexes I and II provide a checklist that may be used for this purpose, and a table providing potential indicators that may be used during the implementation, respectively.

Note on the Secretariat’s Inventory of approved projects: It is important to note that the phase-out activities associated with the tranche request will be incorporated in the Secretariat’s Inventory of approved projects database. Therefore, these activities must be grouped by sector and sub-sector where applicable (e.g., insulation foam for domestic refrigeration, commercial refrigeration, servicing sector) and must include the following information: brief description including names of enterprises to be converted when applicable; for each HCFC, the amounts to be phased out and the replacement technology to be introduced (e.g., HCFC-141b by cyclopentane, or HCFC-22 by HFC-32) (in case where more than one technology is selected (e.g., cyclopentane and methyl formate), the amounts of HCFC to be phased out associated with each replacement technology should be provided); total funding associated the activity; and date of completion.

ANNEX: DRAFT AGREEMENT

The text of the draft Agreement between an Article 5 country and the Executive Committee should be based on the template approved by the Executive Committee at its 61st meeting and modified at subsequent meetings.

Decision 61/46: (a) To approve the revised template, as amended, attached as Annex XIII of document UNEP/OzL.Pro/ExCom/61/58, as a reference for the drafting of an Agreement between a country and the Executive Committee regarding HCFC phase-out management plans (HPMPs); for countries which wished to submit sector plans, those would be considered on a case-by-case basis; (b) to request that future draft agreements schedule the submission of final tranches so that consumption would be reported under Article 7 of the Montreal Protocol for 2013 before approval of the last tranche of the agreement; (c) to request the Secretariat to provide to the Executive Committee, at the first meeting of each year, starting in 2012, a list of all countries with a baseline HCFC consumption of 360 metric tonnes and below that had an approved HPMP and an indication for a sample of 20 per cent of countries from that list to enable the Executive Committee to approve such a sample for verification of each country’s compliance with the HPMP agreement for that year; (d) not to require verification under the HPMP agreement for countries on that list other than those included in the sample; and (e) to request those bilateral and implementing agencies acting as lead agency for the respective agreements to include the related costs for verification in a work programme amendment in the same year, and to submit the related verification in conjunction with a tranche request in the following year.

RELEVANT SOURCES OF INFORMATION

Final reports of the meetings of the Executive Committee (www.multilateralfund.org)

The policies, procedures, guidelines and/or criteria document, Multilateral Fund Secretariat (www.multilateralfund.org)

Inventory of approved project proposals, Multilateral Fund Secretariat (distributed to implementing agencies)

Article 7 data reported by Article 5 countries (http://ozone.unep.org/Data_Reporting/Data_Access/)

The Annual Progress and Financial Reports and Business Plans of the Multilateral Fund

The status of ratification of the Montreal Protocol (http://ozone.unep.org/Ratification_status/)


http://ozone.unep.org/Ratification_status/

http://ozone.unep.org/Data_Reporting/Data_Access/


Document UNEP/OzL.Pro/ExCom/45/46 on further assistance for the post-2007 period for low-volume consuming countries: a review of decision 31/48. Annex I lists policy papers on the refrigeration servicing sector that have been considered by the Executive Committee; Annex II contains all relevant decisions by the Executive Committee on the refrigeration servicing sector (as of April 2005); and Annex V describes the roles and responsibilities of main stakeholders implementing TPMP projects (i.e., project management unit)

Document UNEP/OzL.Pro/ExCom/53/60 on options for assessing and defining eligible incremental costs for HCFC consumption and production phase-out activities (follow-up to decision 52/4)

Document UNEP/OzL.Pro/ExCom/54/53 on draft guidelines for the preparation of HCFC phase-out management plans incorporating HCFC surveys (decision 53/37 (h))

Document UNEP/OzL.Pro/ExCom/55/47 on revised analysis of relevant cost considerations surrounding the financing of HCFC phase-out (decisions 53/37(i) and 54/40

Document UNEP/OzL.Pro/ExCom/59/7 (updated model rolling three-year phase-out plan: 2010-2012 (decision 56/5)), provides an analysis of the estimated HCFC baseline for compliance

Document UNEP/OzL.Pro/ExCom/60/46 on outstanding HCFC issues: cut-off date, level of incremental operating costs, funding provided to the servicing sector, and incremental capital costs (decision 59/46)

Document UNEP/OzL.Pro/ExCom/61/52 on the revised template for draft agreements for HCFC phase-out management plans (decisions 59/16(b) and 60/46)

Document UNEP/OzL.Pro/ExCom/61/53 on consumption arising from HCFC-141b contained in pre-blended foam chemicals (polyols) (decisions 59/12 and 60/50), and on the eligibility of funding conversion of foam enterprises using HCFC-141b contained in imported pre-blended polyols

Document UNEP/OzL.Pro/ExCom/79/16 on inventory of enterprises database (decision 79/22)

Document UNEP/OzL.Pro/ExCom/63/57 a report on multi-year agreement tables database for HCFC phase-out management plans (decision 59/7)

Document UNEP/OzL.Pro/ExCom/66/49 on information on previous conversions funded by the Multilateral Fund, and describing the conditions under which agreements were signed with Article 5 countries on the phase-out of CFCs (decision 66/50)

Document UNEP/OzL.Pro/ExCom/66/50 on options for a tracking system for HCFC-141-based pre-blended polyols (decision 66/51)

Document UNEP/OzL.Pro/ExCom/66/51 on incremental costs related to retooling for manufacturing heat exchangers (decision 66/52)

Document UNEP/OzL.Pro/ExCom/70/53 on minimizing adverse climate impact of HCFC phase-out in the refrigeration servicing sector (decision 68/11)

Document UNEP/OzL.Pro/ExCom/74/9 on HCFC foam evaluation (decision 74/7)

Documents UNEP/OzL.Pro/ExCom/77/9 and Corr.1 on HCFC phase-out projects in the refrigeration and air-conditioning manufacturing sector evaluation (decision 77/6)

Document UNEP/OzL.Pro/ExCom/84/63 on the report on end-user incentive schemes funded under approved HCFC phase-out management plans (decision 84/84)



Document UNEP/OzL.Pro/ExCom/84/73 on draft operational policy on gender mainstreaming for Multilateral Fund-supported projects (decision 84/92)

Annex XXX of document UNEP/OzL.Pro/ExCom/84/75 on operational policy on gender mainstreaming for Multilateral Fund supported projects



Annex I

GENDER MAINSTREAMING CHECKLIST FOR PROJECTS1

Project component Question AnswerYes No Partially

Project preparation Does the project concept include consideration of (a) the different situations of women and men, and (b) the impacts the project will have on these different societal groups?Does the project explicitly address one or more of the identified gender issues/ gender-differentiated project impacts? Please describe how, and if not provide an explanation.

Data and statistics Where applicable, does the project require the collection of sex-disaggregated data and qualitative information to analyze and track gender issues?

Results framework Are outcomes, outputs and activities designed to meet the different needs and priorities of women and men?Does the results framework include gender responsive indicators, targets and baseline data to monitor gender equality results?

Budget Has the budget taken into account allocations for the proposed gender activities (e.g., capacity building activities for female technicians)?

Stakeholders and participation Are women/gender-focused Ministries, groups, associations or gender units in partner organizations consulted/included in the project?Does the project ensure that both women and men can provide inputs, access and participate in project activities (e.g., through outreach / invitations of female technicians to participate in capacity building activities)?

Gender capacities Has a gender expert been recruited or does the project staff have gender knowledge and have gender related tasks incorporated in their job descriptions?Will project staff and stakeholders be sensitized to gender (e.g., through completion of UN Women online training courses)?

Implementation arrangement Is there gender-balanced recruitment of project personnel and gender balanced representation in project boards and steering committees?

1 UNEP/OzL.Pro/ExCom/84/73.



Project component Question AnswerYes No Partially

Monitoring and evaluation Does the monitoring and evaluation of the project require specific reporting on gender issues and progress made to address these (quantitatively and qualitatively)?



Annex II

LIST OF GENDER RESULTS AND INDICATORS0

Result Indicator (where applicable)Gender-responsive human resource management (recruitment focused)

Number and percentage of applications received from women and men Number of efforts undertaken to encourage women to apply Number of efforts undertaken to recruit women Number and percentage of male and female consultants/experts/technical

assistants etc. recruited through the project Terms of reference (TOR) include gender competence as requirement in

(yes/no) TORs include provision that encourages women to apply (yes/no) Gender competence was tested as part of interview/test (yes/no) Number and percentage of women and men in recruitment panel Number and percentage of women and men in management/leadership

positions Database with women experts established (yes/no) Work environments are gender-friendly (yes/no) Efforts undertaken to encourage stakeholders/partners to recruit women

(yes/no) Gender focal point for project identified (yes/no)

Documents prepared under the project are gender-responsive (e.g. policies, strategies, training materials, knowledge products)

Number of gender-responsive assessments Number of specific gender assessments Technical reports have gender section (yes/no) Percentage of data collected in assessments disaggregated by sex Number and percentage of women and men interviewed in assessments Assessment team included gender specialist (yes/no) Number and percentage of gender-specific questions included in

assessments Number of gender references in text Number and percentage of women and men involved in development of

document Number of associations/networks/stakeholders focusing specifically on

gender equality and women’s empowerment (GEWE) were consulted throughout the process

Number and percentage of graphic material in document that portrays women and men

Presented data is disaggregated by sex (yes/no) Good gender practices and lessons learned on gender are documented

(yes/no)Gender-responsive knowledge management/dissemination

Number of gender-specific content disseminated (e.g. through online platforms, events)

Number of events focusing on gender held (e.g. trainings, workshops, discussions, round tables, side events at conferences)

Number of women and men that received/accessed information

0 UNEP/OzL.Pro/ExCom/84/73.



Result Indicator (where applicable)Gender-responsive capacity building (for gender-responsive training see above)

Number and percentage of male and female participants Number and percentage of trainings for gender issues Number and percentage of trainings that include targeted session on

gender Number and percentage of trainings undertaken in collaboration with

gender focal points/gender experts’/gender departments percentage of time dedicated to gender in trainings Number and percentage of women presenting in trainings Data presented in trainings is disaggregated by sex (yes/no) Trainers have gender competence (yes/no) Gender specialist involved in preparation of training and information

material (yes/no) Training/information material is gender-sensitive (yes/no)

Work environments are gender-friendly

Number of stakeholders (e.g., private sector partners) sensitized on the need for gender-friendly work environments

Flexible working hours possible (yes/no) Child care facilities available at the work place (yes/no) Separate washrooms for women and men available (yes/no) Transport for women and men available to workplace (yes/no)

Enhanced economic empowerment of women

Number and percentage of women and men in formal employment (by sector and type)

Number and percentage of women and men in leadership positions Number and percentage of women and men trained Number and percentage of enterprises owned by women and men Number and percentage of enterprises managed by women and men Evidence that perception of women’s empowerment has changed

(e.g. testimonies, interviews)Enhanced understanding of GEWE among project staff / stakeholders and beneficiaries

Number and percentage of staff / stakeholders / male and female beneficiaries who received training on gender

Evidence that women are more aware of their rights (e.g. through interviews/testimonies)

Evidence that men are supportive of GEWE (e.g. through interviews/testimonies)
