Download CDM Effect (levels are indicative)

Some background to letter
from Exec. Secretary of
Montreal Protocol
Christiana Figueres
March 2007
Basic Facts
• Most ozone depleting substances have been
phased out or are in the process
• HCFCs main remaining ODS
– Intermediate substance
– later timetable for developing countries
• HCFC22 widely used refrigerant in developing
countries (not in A1)
– HFC23 is by product of HCFC22 production
– GWP of HFC23 = 11,700
• Developing countries
– HCFCs freeze Jan 2016 at 2015 baseline
– Elimination 2040
– Schedule set in 1990 (before CDM and accelerated
growth of developing countries)
• Concerns
– 2015 baseline is incentive to continue to increase
consumption (consumption=production + imports - exports)
– CDM promotes HCFC22 consumption
• Unexpected damage to ozone layer
– Phaseout costs may exceed Multilateral Fund
possibilities
CDM Effect
(levels are indicative)
• Seven proposals for MOP19 in Sept ‘07
• Options
– Lower baseline (e.g. 2010 instead of 2015)
– Accelerate the phase out (e.g. 2030 instead of
2040)
– Channel effect of CDM
Option 1: Lower the baseline to 2010
Option 2: Accelerate the phase out to 2030
Option 3:
Channel the effect of CDM
• New plants allowed, third party gets CERs,
revenue used for environmental activities.
• Tech and Ec Assess Panel (TEAP) is
requested to analyze scenarios
• Request to EB
– Info on volumes of HFC23 expected on the
market
– Info on CER price expectations
– Collaboration with Ozone Secretariat