Addressing HFC Consumption Under the Montreal Protocol

1. Addressing HFC Consumption Under the Montreal Protocol Dr. John E. Thompson Deputy Director Office of Environmental Policy U.S. Department of State

2. Scope of Presentation Rationale for Action Linkages between ODS and HFCs 2010 North American Amendment Proposal Overview Environmental Benefits

3. Projected HFC Growth: PNAS, 2009, Velders, et al U.S. EPA, 2009 HFC growth linked to ODS phaseout, expanding availability of air conditioning & refrigeration

4. Taking Action for Sound ODS Phaseout • HFC Growth is direct result of ODS phaseout • Montreal Protocol experience and success on HFC-sectors • Refrigeration • Air Conditioning • Foams • Aerosols • Solvents • Fire Suppression • Montreal Protocol Heavily Involved in addressing HFCs • Phaseout of HCFCs currently being implemented • Multilateral Fund incentivizes transition to climate-friendly alternatives

5. Many Substitutes Available and More on the Way • “The ultimate choice of technology to phase-out HCFCs will be based on ozone depletion and also climate impact, health, safety, affordability and availability, as Decision XIX/6 requires” May 2010 TEAP XXI/9 Task Force Report Assessment Of HCFCs and Environmentally Sound Alternatives • 2010 TEAP Progress Report • Substitutes for many sectors and sub-sectors available • Additional substitutes under development • Global acceptance for alternatives strengthening

6. 2010 North American Proposal • Control HFC production and consumption • Control by-product emissions of HFC-23 • Covers 20 HFCs, including 2 HFOs • Phasedown, not Phaseout of HFCs • Baseline is combination of HCFC and HFC consumption (allows some growth) • Alternatives already available or in pipeline in some sectors (MVAC, domestic refrigeration, foams) • Alternatives unavailable in a few sectors (MDIs) • Caps initiate in 2014 and 2017 • Plateau 15% of Baseline, GWP-weighted (2033 and 2043) • Ways to Achieve Phasedown • Transition out of HFCs • Smaller Charge Sizes • Move from High to Low GWP HFCs

7. Trilateral Proposal Phasedown Schedule

8. 2010 Trilateral Amendment Proposal • HFC-23 Byproduct Control • From HCFC-22 Production • Significant HFC-23 Emissions Uncontrolled • By-product emissions subject to control • Obligation eligible for Multilateral Fund assistance • Additional benefits of 6,000 MtCO2eq by 2050 • Technical and Financial Support – MLF • Incremental cost model – has worked in these sectors • Bigger problem if we wait • Complements but leaves unchanged UNFCCC obligations • Supports global efforts to reduce GHGs • Leave HFCs in UNFCCC basket – accounting and reporting

9. Substantial Climate Benefits Possible • Trilateral Proposal global cumulative benefits: • ~3,000 MtCO2eq* through 2020 • Developed country Parties = 3,000 MtCO2eq • Developing country Parties = 150 MtCO2eq • ~88,000 MtCO2eq through 2050 • Developed country 5 Parties = 43,000 MtCO2eq • Developing country Parties = 45,000 MtCO2eq • EPA’s Analysis of HFC Production and Consumption Controls: www.epa.gov/ozone/downloads/Analysis_of_HFC_Production_and_Consumption_Controls.pdf *MtCO2eq is the same as MMTCO2eq

10. North American Proposal Benefits consumption reductions emission reductions emissions MMTCO2eq

11. Final Thoughts Montreal Protocol appropriate vehicle HFCs use tied to ODS phaseout Successful global agreement Effective financial mechanism Sector expertise Known alternatives, technologies, and better handling can reduce HFC consumption Developed countries start transition Significant near-term climate benefits