Multilateral Fund Commits US$385 Million for HCFC Reduction
23 April 2013: The Multilateral Fund for the Implementation of the Montreal Protocol (MLF) has committed up to US$385 million to China for the elimination of all industrial production of hydrochlorofluorocarbons (HCFCs) by 2030. China is the largest producer of HCFCs, and eliminating the country's HCFC production will prevent emissions equivalent to 8 billion tonnes of carbon dioxide (CO2).
According to the MLF, China has agreed to retire its current HCFC production capacity as well as currently un-utilized surplus production capacity. China also must ensure that HCFC plants receiving funding do not switch to producing HCFCs as industrial feedstock, a use not controlled under the Montreal Protocol on Substances that Deplete the Ozone Layer.
The Government of China estimates that the HCFC phase-out will prevent emissions of over 4.3 million metric tonnes of HCFCs, equal to 300,000 tonnes in terms of its ozone depletion potential, and 8 billion tonnes of CO2 equivalent greenhouse gas (GHG) emissions.
HCFCs are the last remaining ozone depleting substance (ODS) to be controlled under the Montreal Protocol, and are also GHGs. HCFCs are widely used in the refrigeration, foam, solvent, aerosol and fire fighting sectors. China is responsible for 92% of HCFC production in developing countries. [UNEP Press Release] [MLF Press Release]