In July 2011, the People’s Republic of China signed an USD 265 million agreement with the Multilateral Fund for the Implementation of the Montreal Protocol to reduce its use of hydrochlorofluorocarbons (HCFCs) by 17 per cent. HCFC is a gas used for different applications, such as refrigeration and air conditioning, foam blowing, spray applications, aerosols among others.

HCFC is being phased out worldwide under the Montreal Protocol due to its ozone depletion potential  and as a potent greenhouse gas.

“Chinese HCFC-consuming industries have made a significant step to meeting the first reduction targets under the Montreal Protocol. However, due to a rapidly growing economy, China still remains the world’s largest producer and consumer of HCFCs,” said Sidi Si Ahmed, Director of UNIDO’s Montreal Protocol branch.

Some USD 119 million, or roughly 45 per cent of the total amount received from the Multilateral Fund, will be allocated to the United Nations Industrial Development Organization (UNIDO) for technology transfer and capacity-building services. The remaining funds will go to partners like UNDP, UNEP, the World Bank and the Governments of Germany and Japan.

China uses HCFCs as refrigerants for air conditioners and industrial and commercial refrigeration, foam blowing agents, aerosols and to a lesser extent as solvents.  These industrial sectors will face the challenge of converting hundreds of production lines in order to freeze the country’s consumption of HCFCs by 2013 and reduce its consumption by at least 10 per cent by 2015 in line with the Montreal Protocol’s control measures for HCFCs. 

Once implemented, the programme expects to help eliminate 3,320 tones of HCFC consumption in China, increase technology transfer and other know-how, as well as to significantly contribute to global efforts on mitigating climate change. The overall reduction is expected to reflect some 17 per cent of China’s current total of controlled HCFC use.

“Since assuming in 1992 its role as an Agency of the Multilateral Fund , UNIDO has assisted 85 developing countries and economies in transition in complying with their Montreal Protocol obligations,” said Sidi Si Ahmed.

 “This was done through the implementation of over 600 projects and the execution of more than 500 non-investment activities.”

UNIDO’s performance in this area has been continuously highly rated by the Multilateral Fund. Between 2001 and 2010, out of ten evaluations, UNIDO was ranked as the top implementing agency eight times, and twice the second.

In addition to this programme, the same meeting approved another USD 7.5 million for UNIDO HCFCs phase out projects in fourteen other countries, eight of which are Least Developed Countries, or LDCs.

For more information, please contact:

Sidi Si Ahmed
Director of UNIDO’s Montreal Protocol branch
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