Major Issues to be Discussed Major Issues to be Discussed at the 22at the 22ndnd Meeting of the Parties Meeting of the Parties

to the Montreal Protocolto the Montreal Protocol

Ozone Secretariat UNEP Ozone Secretariat UNEP

OctoberOctober 2010 2010

Main topics of this presentation

Terms of reference for replenishment and an evaluation of the financial mechanism

Proposal on assessment of HCFC guidelines

Proposal on status of HCFCs in preblended polyol

Proposals on ODS Destruction / Destruction of HFC 23

Proposed HFC amendments to the Montreal Protocol

Essential Use, Critical Use, Process Agent, Lab and Analytical use and QPS exemptions

Other Matters (Haiti, Stockpiles, status of the Executive Secretary post)

But before we get to the substance – lets do some logistics and admin for MOP

MOP will be 8-12 Nov in BANGKOK THAILAND – Please send an email to Marco reconfirming your participation

Get your travel, visa and hotels set now

Bring your laptops – paperless meeting

Admin – in 2011 LAC has Rap. on Bureau and 3 Excom seats. Nicaragua's initial term on Impcom is ending – can get new term or be replaced

4

VISA INFORMATIONVISA INFORMATION

63 countries can enter Thailand without a 63 countries can enter Thailand without a visa or can get a visa on arrivalvisa or can get a visa on arrival

Unfortunately, not many are in this region:Unfortunately, not many are in this region: Argentina, Brazil, Canada, Chile, Peru, USAArgentina, Brazil, Canada, Chile, Peru, USA don’t need a visadon’t need a visa

No countries here are eligible for visa on No countries here are eligible for visa on arrival arrival

5

Now on to substanceNow on to substance

First issue – Fund related workFirst issue – Fund related work

Terms of Reference for 2012-2014 Replenishment of the Multilateral Fund

In year before replenishment, parties prepare TOR for a TEAP study on funds needed for next 3 years

OEWG progressed on consensus Terms of Reference for TEAP replenishment study (doc. 22/3 – Decision XXI/[D])

At OEWG, the only outstanding issues appeared to be whether the TEAP should be asked to:

(a) provide indicative figures for $$ that would be needed for A5 parties to comply with the HFC amendment proposals

AND/OR whether they should be asked to

(b) provide indicative figures for additional $$ to promote HCFC alternatives with low GWP taking account of H&S

7

Terms of reference for an evaluation of the Financial Mechanism

22nd MOP agreed to undertake a future evaluation of the financial mechanism - OEWG made considerable progress on terms of reference – doc. 21/3 decision XXII/C

Main outstanding issues

- Number [6] and designation of who will be on a steering panel and cost of study- Number [6] and designation of who will be on a steering panel and cost of study

- whether to request the study to address:- whether to request the study to address: (a) the (a) the [Total reductions [and introduction of] greenhouse gases in CO2eqs resulting from MLF activities and production capacity installed];

(b) (b) [Comparison of approved incremental costs and actual [incremental] costs (c) [ID of incidental impacts of MLF activities, not directly related to ODS [or GHG]

(d) [Comparison of env impacts of substitutes and alternatives funded by MLF per XIX/6;]

(e) Adequacy and effectiveness of [the division of labor between] the Excom, Secretariat, evaluation function, Treasurer and the IAs and bilateral agencies;

8

Proposed Assessment of HCFC Guidelines Proposed Assessment of HCFC Guidelines

Argentina, Brazil, Columbia, Uruguay and Venezuela Argentina, Brazil, Columbia, Uruguay and Venezuela proposed to request TEAP to assess and submit to the proposed to request TEAP to assess and submit to the OEWG a report on:OEWG a report on:

- The extent to which the HCFC funding guidelines would - The extent to which the HCFC funding guidelines would allow A5s to use low GWP alternativesallow A5s to use low GWP alternatives

- Quantities and types of HFCs and applications where - Quantities and types of HFCs and applications where HFCs are likely to be phased in as HCFC alternatives due HFCs are likely to be phased in as HCFC alternatives due to lack of low GWP alternatives or insufficient funding to lack of low GWP alternatives or insufficient funding

This proposal was to be initially discussed in the This proposal was to be initially discussed in the replenishment contact groupreplenishment contact group

9

Proposal by India on affirming the status of HCFCs preblended in polyol

India proposed to have the Meeting of the Parties:

- affirm that HCFCs preblended in polyol are to be defined as a controlled substance, and subjected to the phaseout,

- affirm that related consumption should be eligible for MLF funding

- urge parties to report production, consumption and exports of HCFCs preblended in polyols from 2009, and earlier if possible, and requests the Secretariat to adjust reporting formats accordingly

Subsequent to the OEWG – Excom took a decision to fund phaseout of HCFCs preblended in polyol without changing historic status; given this, its unclear whether this proposal will be withdrawn

10

Issue II: Four Proposals on ODS Destruction

Australia: Analyze MBR destruction technologies and add to the list of approved technologies if appropriate

Nigeria: TEAP to develop criteria for handling and destruction of ODS at relevant facilities and deciding what technology to use, and update list of approved technologies

EC: encourage addressing banks through GEF synergies, pursuit of schemes where importers or producers take responsibility for disposal; request TEAP to update list of approved technologies and to report on MLF and GEF experience; and explore additional options

Mauritius: request DTIE to study and present to the regions and the OEWG a report on ODS banks in LVCs with a view to ensuring destruction with optimized cost/benefit and aggregating small quantities to facilitate effective destruction

11

Issue III

Items related to HFCs

12

Proposal on Destruction of HFC 23 byproduct emissions of HCFC 22

- Update info on HCFC 22 production facilities- Update info on HCFC 22 production facilities for next years OEWGfor next years OEWG

- Estimate incremental cost of collection/ - Estimate incremental cost of collection/ destruction of HFC23 by product emissionsdestruction of HFC23 by product emissions

- Urgently facilitate the formulation and- Urgently facilitate the formulation and implementation of projects to eliminate implementation of projects to eliminate emissions for lines not getting CDM creditemissions for lines not getting CDM credit

- Request TEAP study costs on a facility or - Request TEAP study costs on a facility or production line basis for OEWG production line basis for OEWG

13

Some key points of proposal by Canada, Mexico and the United States of America

Non-A5 Parties freeze HFC production/consumption in [2014] at 2004-2006 levels of HFCs plus HCFCs, and reduce [20%] in 2017, [30%] in 2020, [50%] in [2025], [70%] in [2029], and, 85% in [2033], with 10% production allowance for basic domestic needs.

A5 Parties would have a grace period from dates above.

MLF to cover HFCs.

Strictly limits HFC byproduct emissions from HCFC 22 production by 2014

Estimated to result in reduction of 3100 MMT CO2eq through 2020 and around 88000 mmtCO2eq through 2050

14

HFC Amendment ProposalFederated States of Micronesia

Developed base: Developing base 04-06 HFCs/HCFC 07-09 HCFC P and C 2012: freeze 2018: Freeze 2015: [15%] reduction 2021: [15%] 2018: [30%] reduction 2024: [30%] 2021: [45%] reduction 2027: [45%] 2024: [60%] reduction 2030: [60%] 2027: [75%] reduction 2033: [75%] 2030: [90%] reduction 2036: [90%]

HFCs covered under MLF including HFC 23 destruction

15

Item 4

Items related to ExemptionsItems related to Exemptions

16

MBR Critical Use Exemptions

The Parties have come a long way: 18k t in 2006 – about 1.5k t for 2012

Party 2011 2012 Interim recParty 2011 2012 Interim recAustralia 35 32Australia 35 32Canada 4 16 2/16Canada 4 16 2/16Israel 232 224Israel 232 224Japan 221 Japan 221 220 220USA 1182 994USA 1182 994Total 236 1454 226/1261Total 236 1454 226/1261

17

Essential Use Exemptions

2010 nom 2011 nom 2012 rec2010 nom 2011 nom 2012 recArgentina 178 120 107Argentina 178 120 107Bangladesh 156 113 39Bangladesh 156 113 39China 972 810 741China 972 810 741India 343 192 48India 343 192 48Iran 105 105 105Iran 105 105 105Pakistan 35 40 40Pakistan 35 40 40Russia 212 248 212Russia 212 248 212Russia (aircraft) 120 100 100Russia (aircraft) 120 100 100

Egypt, Syria and USA have eliminated requests Egypt, Syria and USA have eliminated requests

18

Lab Use Exemptions

TEAP review found alternatives available for most applications and recommended that the exemption no longer apply to a long list of those applications

At OEWG - no draft decision – recognized need for more work including a decis XXI/6 requested evaluation of A5s ability to phaseout related uses. That evaluation will be done for next year

19

Process AgentsProcess Agents

Process agent generally refer to ODS used Process agent generally refer to ODS used as a catalyst in production of other as a catalyst in production of other chemicals – mostly minimal emissionschemicals – mostly minimal emissions

At OEWG – some parties suggested At OEWG – some parties suggested updating table of approved process agent updating table of approved process agent uses to eliminate those applications that uses to eliminate those applications that have already been phased outhave already been phased out

20

Proposal on Quarantine and Preshipment Proposal on Quarantine and Preshipment (QPS)(QPS)

XXI/10 QPS report covering MBR and alternatives used for timber and XXI/10 QPS report covering MBR and alternatives used for timber and wood packaging material; grains/foodstuffs; pre-plant soil use; and wood packaging material; grains/foodstuffs; pre-plant soil use; and logs. Also requested methodology for assessing impact of MBR QPS logs. Also requested methodology for assessing impact of MBR QPS restrictions. Report was done and is in Chapter 8, volume 2 TEAPrestrictions. Report was done and is in Chapter 8, volume 2 TEAP

At OEWG, TEAP presented and EC proposed decision N, doc 22/3 At OEWG, TEAP presented and EC proposed decision N, doc 22/3 1. Asked parties: to review MBR rules to allow other treatments; 1. Asked parties: to review MBR rules to allow other treatments; use narrow QPS definition; 3. submit sectoral QPS data by 2012use narrow QPS definition; 3. submit sectoral QPS data by 2012

2. TEAP to do report for assessing impact of possible QPS controls s2. TEAP to do report for assessing impact of possible QPS controls s

3. Asked Secretariat to review data and re-ask Parties for fill in data if 3. Asked Secretariat to review data and re-ask Parties for fill in data if data was incompletedata was incomplete

21

Item 5Item 5

Other MattersOther Matters

22

Special Situation of HaitiSpecial Situation of Haiti

Draft decision from Grenada and St Lucia Draft decision from Grenada and St Lucia aimed at assisting Haiti in its compliance aimed at assisting Haiti in its compliance following the 1/2010 earthquakefollowing the 1/2010 earthquake

Revised proposal found as draft decision Revised proposal found as draft decision XXII/[O] in chapter I of document XXII/[O] in chapter I of document UNEP/OzL.Pro.22/3 UNEP/OzL.Pro.22/3 - consensus apparent - consensus apparent

23

Stockpiles and complianceStockpiles and compliance

Some parties have reported they exceeded Some parties have reported they exceeded reduction target due to intent to use or reduction target due to intent to use or export the ODS in question in the future export the ODS in question in the future and for an exempted use (eg: BDN, and for an exempted use (eg: BDN, feedstock, essential use)feedstock, essential use)

EU draft decision (XXII/X in doc 22/3) EU draft decision (XXII/X in doc 22/3) designed to facilitate tracking of this designed to facilitate tracking of this excess ODS to ensure it is used as excess ODS to ensure it is used as expectedexpected

24

Level of Executive Secretary PostLevel of Executive Secretary Post

Head of MEA secretariats are at different Head of MEA secretariats are at different grades/levels – eg: CBD, Climate and grades/levels – eg: CBD, Climate and Desertification are at Assistant Secretary Desertification are at Assistant Secretary General (ASG) level - Ozone Secretariat at General (ASG) level - Ozone Secretariat at D2; difference in status, pay and retirement D2; difference in status, pay and retirement

Grenada proposed to examine cost and Grenada proposed to examine cost and process for upgrading post. Finding: $25k process for upgrading post. Finding: $25k and decision of parties to request UNEP to and decision of parties to request UNEP to work with UN Secretary Gen to upgradework with UN Secretary Gen to upgrade

25

ConclusionConclusion

- Busy meetingBusy meeting

- Make your plans for being there nowMake your plans for being there now

- Consider your regional reps for 2011 postsConsider your regional reps for 2011 posts

- See you at the MOPSee you at the MOP