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Indian Industry Perspective on phase down of HFC s

Indian Industry Perspective on phase down of HFC s

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Indian Industry Perspective on phase down of HFC s

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  1. Indian Industry Perspective on phase down of HFCs REFRIGERANT GAS MANUFACTURERS ASSOCIATION (REGMA) INDO-US WORKSHOP ON HFCs 18th February, 2011

  2. Contents: • Industry Overview • Compliance with Montreal Protocol • Issues faced by Indian Industry • HCFC Phase out – The Challenges • HFC Phase-Down Proposal- The Concerns • Conclusion & Way Forward

  3. Industry Overview • Fluorocarbon refrigerants being produced in India since last 45 years • India has 5 HCFC-22 plants • All HCFC-22run by public limited, listed companies • All 5 plants plants have CDM registered projects for incineration of HFC-23 • No HFC-23 emissions – all HFC-23 emissions in India being destroyed under the Kyoto Protocol of the UNFCCC • Presently one HFC-134a production facility operational

  4. Compliance with Montreal Protocol • Indian production sector has been proactive in ODS phase-out – complied with all international obligations – and more • Halon production phased out much ahead of schedule – first Halon facility closed down globally was Indian • CTC production phased out as per international commitments • CFC production phased out ahead of schedule • HCFC production capacity for emissive use frozen since 2000 – the only A5 Party to do so

  5. Issues faced by Indian industry • Technology transfer for production sector not available though promised under Montreal Protocol • Compensation for phase-out not in accordance with economic and technical assessments – fell short of “incremental costs” • Delay in receipt of compensation

  6. HCFC phase-out – the challenges • In 2007, HCFC-22 phase-out and accelerated phase-out schedule was agreed upon, based on HFCs being readily available as viable substitutes • Therefore, present proposal for HFC phase-down challenges the core assumption behind accelerated HCFC-22 phase-out • Lack of clarity on other (non-HFC) substitutes for HCFC-22 Contd…

  7. HCFC phase-out – the challenges • Funding mechanism for accelerated phase-out of HCFC production sector still not in place – pending for more than 3 years • Concerns about funding not being based on technological and economic assessments

  8. HFC phase-down proposal – the concerns • HFCs are greenhouse gases, not ozone depleting substances • Low GWP substitutes not available for most applications • Some low GWP substitutes are in early developmental stage – concerns about cost, technology, long term reliability, flammability, etc • A robust and legally binding technology transfer mechanism needs to be built Contd…

  9. HFC phase-down proposal – the concerns • Funding mechanism and guidelines need to be pronounced clearly and transparently – to be based on technical and economic assessments • All HFC-23 emissions in India already being destroyed under the Kyoto Protocol of the UNFCCC • Possibility of two changeovers in a short span of time – associated costs and production disruptions – not affordable by a country like India

  10. Conclusions – and way forward • Detailed studies required on HFCs • Legal issues – whether HFC phase-down can be considered under the Montreal Protocol • Technical issues - assess and evaluate long term low GWP substitutes for all applications • Economic issues - assess costs associated with multiple change-over • Stipulate clear and transparent guidelines for funding mechanism, based on technical and economic assessments • Create a robust and legally binding mechanism for technology transfer – latest technology should be available well in time, funded under a suitable funding mechanism Contd…

  11. Conclusions – and way forward • Provide sufficient time lag between developed and developing countries for baseline and phase-down • Phase-down to be paced out with availability of technology and finance • All HFC-23 emissions in India are already being controlled under the Kyoto Protocol of the UNFCCC Contd…

  12. Conclusions – and way forward Suggested way forward • Continue interaction at Industry and Government levels to deliberate on the key issues to work out a suitable framework and timeline for phase down of HFCs

  13. Thank You