All about natural hydrocarbon refrigerants in cooling & refrigeration: News, Products, Jobs, Events, Knowledge, Forum, B2B Networking.

Policies to enable developing countries to eventually eliminate HCFCs in cooling and heating equipment and prioritise low-GWP technologies like hydrocarbon refrigerants were agreed earlier this month in Montreal at the 60th Meeting of the Executive Committee of the Multilateral Fund for the implementation of the Montreal Protocol.

The members of the Executive Committee (ExCom) of the Multilateral Fund (MLF) reached a long-awaited agreement on HCFC guidelines to enable developing countries to comply with the Montreal Protocol’s accelerated phase-out timetable of hydrochlorofluorocarbons (HCFCs), a group of chemical refrigerants that not only damage the ozone layer but also contribute to climate change. The agreed guidelines set out the eligibility and criteria for funding and re-established trust in the funding mechanism of the Montreal Protocol.

25% incentive to leapfrog HFCs

The MLF has agreed to incentivise developing countries to opt for low Global Warming Potential (GWP) and energy efficient replacements, including natural refrigerants such as hydrocarbons, instead of high-GWP HFCs when phasing out HCFCs: “Funding of up to a maximum of 25 per cent above the cost effectiveness threshold will be provided for projects when needed for the introduction of low global warming potential (GWP) alternatives”, read the guidelines.

A Special Funding Facility to maximise climate benefits

On the other hand, projects that replace HCFCs with low-GWP alternatives that exceed the ozone-only cost threshold by more than 25%, may in the future become eligible for funding under the ‘Special Funding Facility’ that ExCom is currently considering to set up.

The primary goal of the ‘Special Funding Facility’, and the activities funded by it, would be to maximise climate and other environmental benefits associated with Multilateral Fund activities that are, in effect, not required to achieve compliance with the control measures of the Montreal Protocol. The funds for this Facility would be additional to pledged contributions and would come from Parties and institutions not traditionally contributing to the financial mechanism.

Further considerations regarding the establishment of the ‘Special Funding Facility’ will continue at the 61th meeting of the MLF ExCom scheduled between 26 - 30 July 2010 in Montreal, Canada.