Countries Advancing Climate Protection Through HFC Phasedown

More than 100 countries took steady steps forward under the Montreal Protocol, the treaty that protects the ozone layer and the climate, at a week-long meeting earlier this month in the treaty's home city. The semi-annual talks were packed with important presentations by the entities set up to support the Montreal Protocol, including the Technology and Economic Assessment Panel (TEAP) and the Scientific Assessment Panel (SAP), and featured discussions on several items important for the functioning of the treaty.

Four key areas stood out. First, countries are focusing on ways to better curb the super-potent hydrofluorocarbons (HFCs), not only by cutting production of new supplies, but also by reducing the leakage of existing HFCs into the atmosphere. Lifecycle refrigerant management (LRM) -- capturing that bank of climate pollutants before they escape and reusing or destroying them, when necessary -- is a huge climate protection opportunity that NRDC and partnershave helped bring to the forefront. Second, countries are increasingly focused on doubling the climate benefits of implementing the Kigali Amendment by also enhancing energy efficiency. Several Parties are thinking through ways to develop a robust pipeline of projects regarding increased energy efficiency. Third, countries also focused on enhancing atmospheric monitoring of HFCs and other chemicals controlled under the Montreal Protocol, which is crucial for ensuring compliance with the treaty obligations. Finally, parties discussed ways to strengthen institutions under the Montreal Protocol to combat an increase in the illegal trading of controlled substances.

Lifecycle Refrigerant Management

As promised, TEAP's LRM taskforce presented findings from a yearlong study on lifecycle refrigerant management opportunities. Well-received by the Parties (countries), the report estimates that adopting LRM practices could avoid emissions of up to 5000 "ODP tons" which means metric tons of ozone-depleting chemicals weighted by their ozone-depletion potential and a whopping 39 billion metric tons CO2-equivalent of fluorinated GHG emissions, cumulatively, between 2025 and 2050. TEAP's report also highlighted obstacles - such as policy, economics, and access to LRM technologies - that could hinder effective LRM, particularly in Article Five (A5) countries across the Global South. For example, some Parties highlighted challenges with servicing systems in high ambient temperatures, reclaiming HFC blends, and accessing available technologies. LRM will continue to be discussed at a full-day workshop preceding MOP36 in Bangkok, and NRDC is eager to see how the climate opportunity inherent in LRM can be unlocked, especially in countries where the largest banks are expected to be in the coming years.

Energy Efficiency

TEAP provided an update to the Parties on the latest developments regarding energy efficiency (EE) in the context of the Kigali Amendment implementation. Earlier in May, an operational framework for enhancing energy efficiency while phasing down HFCs was discussed and approved at the Executive Committee meeting of the Multilateral Fund. This was a big win for proponents of "twinning" EE and the HFC transition that operationalized funding for energy efficiency through the Treaty in a way that has not been possible before. As part of this framework, a $100 million fund was made available for projects that enhance EE while also phasing down HFCs over the next three years. Parties at OEWG voiced interest in ensuring that a robust pipeline of projects on EE are submitted to utilize this funding as effectively as possible, with a request for addressing the unique challenges and special circumstances of low- and very-low-volume-consuming countries. Parties also expressed interest in creating regional centers of excellence for energy efficiency that can provide various forms of assistance in the refrigeration, air conditioning, and heat pump sector. We expect additional discussions around energy at the upcoming meeting, and NRDC continues to think through ways of supporting these efforts with constructive solutions.

Improving Atmospheric Monitoring

Monitoring emissions of controlled substances is crucial to enforcing the Protocol and ensuring that countries are abiding by their commitments to transition from HFCs and ozone-depleting substances. TEAP presented key findings from a joint workshop that explored costs and challenges of expanding atmospheric monitoring and highlighted two approaches to monitoring controlled substances- including "bottom-up" and "top-down" approaches. Both approaches have their associated advantages and disadvantages - for example, a top-down approach can provide total emissions across a region but cannot identify the specific activities that have contributed to these emissions in the way that a bottom-up approach can.

TEAP noted that there are several regions across the globe where there are virtually no atmospheric measurement stations, including South America and most of Central Asia and South Africa, as depicted in the figure above. Going forward, TEAP emphasized the need to fill these gaps in the current monitoring network, which would be costly and require sustainable sources of funding. One potential option for funding that was highlighted throughout the meeting was utilizing the Trust Funds of the Vienna Convention and the Montreal Protocol. Discussion on this topic will continue into MOP36, where Parties hope to reach a consensus on next steps.

Combatting Illegal Trade

The Ozone Secretariat was requested to share compiled information, provided by the Parties, regarding actions taken to identify and addresses cases of illegal trade. Since 2002, there have been 713 reported cases of across reporting parties, more than 20% of which were new cases reported across eight parties, equivalent to roughly 3,000 metric tons. The Secretariat identified around 150 substances being traded illegally - historically, HFC-134a has had the most reported cases. Common methods of illegal trade include smuggling, non-refillable cylinders, lack of license, concealment, and mislabeling. Enforcement measures typically include confiscation, as well as administrative actions, monetary mines, and criminal charges, on occasion. The most common disposal methods of confiscated substances include destruction, re-export to the country of origin, and/or the auctioning off of the substance, with a noted preference for the permanent removal of the illegal substance to avoid future misuse. Parties will vote on a decision to strengthen institutions under the Protocol to help combat illegal trade.

Other Updates

Feedstock Uses of Controlled Substances

Regarding feedstock uses of controlled substances, 15 parties reported feedstock use of ozone-depleting substances (ODS) in 2022; 10 of these parties produced ODS for feedstock use. Across reporting parties, total ODS production for feedstock use was nearly two million metric tons. Over the past decade, TEAP found that there was a 66% increase in feedstock use, largely driven by increased feedstock uses of HCFCs. Given this increase, a draft decision was submitted that invited parties with any data on the production and/or use of controlled substances as feedstock to submit this information to the Ozone Secretariat by next May. The draft decision also requested the Ozone Secretariat to summarize this data and share information with parties at next year's OEWG meeting. Additionally, the draft decision requested the Executive Committee of the Protocol's Multilateral Fund (MLF) to consider allocating funding to support one or two projects that could help demonstrate best practices and technologies that reduce emissions of controlled substances.

PFAS

In their 2024 Progress Report, TEAP provided updated information to the parties on emerging policies and sector information on per- and poly-fluoroalkyl substances (PFAS). While not explicitly regulated under the Montreal Protocol, existing and emerging definitions of PFAS may include controlled substances and their fluorinated substitutes that fall under the Protocol's purview.

Most HFOs - which have been proposed as alternatives to HFCs - and many HFCs would be classified as PFAS under the Organization for Economic Cooperation and Development's (OECD) definition. According to the TEAP report, manufacturers and stakeholders alike are delaying decisions on selecting alternatives given potential bans on alternatives that contain fluorinated gases. Such delays could impact the rate at which high GWP HFCs are phased down under the Kigali Amendment but would have benefits of avoiding further PFAS pollution.

The week was also filled with several intriguing side events which touched upon upcoming topics such as nitrous oxide, while others provided an update by countries on their efforts at ozone and climate protection. It was, as always, a productive and busy week in Montreal, the home of the Montreal Protocol with Parties working diligently to reach common ground. We are watching progress in these areas closely and preparing for the next round of deliberations at MOP36 in Bangkok in October 2024.

More to come....

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