CHINA: Up to $385m is to be given to China to end its production of R22 refrigerant.
The money from the Montreal Protocol's Multilateral Fund is designed to help ensure the entire elimination of China's industrial production of ozone depleting substances by the 2030.
China has agreed to retire its current HCFC production capacity and will also retire surplus production capacity that is currently not utilized.
According to the Chinese, the total amount of HCFCs to be eliminated will prevent the emission of over 4,300,000 tonnes of HCFCs, equal to 300,000 tonnes in terms of its ozone depletion potential, and 8 billion tonnes of carbon dioxide equivalent greenhouse gas emissions.
With China being the largest producer and consumer of HCFCs, this is potentially the largest project approved so far under the Multilateral Fund since its inception.
China will close and dismantle its production lines producing only HCFCs for uses controlled under the Montreal Protocol and ensure that any HCFC plants that will receive funding do not switch to producing HCFCs as industrial feedstock, a use not controlled by the Montreal Protocol. China will also coordinate with stakeholders and make best efforts to manage HCFC production and associated by-product production in HCFC plants in accordance with best practices to minimize associated climate impacts.
Over the next four years China will receive US $95m to cover the first stage of its HCFC production phase-out management plan (HPPMP) to assist the country to meet the freeze in HCFC production by 2013 and the reduction by 10% by 2015 as required by the Montreal Protocol's HCFC phase-out programme.
The latest data shows that China produces 92% of the total HCFC production of developing countries.
While the announcement was welcomed by the Environmental Investigation Agency (EIA), there are concerns to ensure that HFC23, a hugely damaging by-product of production, is also destroyed.
EIA is calling on China to formally pledge to destroy the HFC23 from all Chinese HCFC production facilities, including facilities which produce HCFC for feedstock.
"Elimination of China's production of HCFCs over the next 17 years is a great win for the environment," said Mark W Roberts, EIA's senior Policy advisor. "However, it will be a hollow victory unless China adopts measures to prevent HFC23 from being vented into the atmosphere."