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INDIA HCFC Production Sector: Key Issues

INDIA HCFC Production Sector: Key Issues . Ruma Tavorath Sr. Environment Specialist World Bank . Gross Production of HCFCs: Consumption and Feedstock. Total. Consumption (Emissive Use). Feedstock (PTFE). Accelerated Phase-out Schedule.

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INDIA HCFC Production Sector: Key Issues

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  1. INDIAHCFC Production Sector:Key Issues RumaTavorath • Sr. Environment SpecialistWorld Bank

  2. Gross Production of HCFCs: Consumption and Feedstock Total Consumption (Emissive Use) Feedstock (PTFE)

  3. Accelerated Phase-out Schedule * 2.5% of the baseline allowed for servicing – to be reviewed in 2025

  4. Loss of Profit due to accelerated phase-out

  5. Background • India produces HCFC-22 (production ~45,000mt; consumption~11,000 ; exports ~30,000mt) • Decision XIX/6 on accelerated HCFC phase-out initiated the second phase of ODS phase-out and recognized the link between HCFCs and climate change • Opens the door for blending financial mechanisms (GEF; CF; CIF) and focusing on improved EE initiatives, clean alternatives etc • CFC Production phase-out: 2000-2008 (accelerated) • Lessons learned from CFC Phase-out: • Requisite Policy framework • Coordination between consumption and production to minimize negative impacts (recognized and being encouraged) • Programmatic phase-out • Existing institutional and monitoring framework; pricing

  6. Externalities • Increasing demand for HCFC-22 for RAC and for PTFE nationally and worldwide; (economic growth) • Large supply of HCFC in international and domestic market • Price differentials; import licenses in place; potential for illegal trade • Availability of substitute gases and technologies at realistic and affordable prices • GWP of alternatives is now a question – emphasis to reduce climate footprint of different end-uses – Cost? • Subsidization by CDM (incineration of HFC23 for HCFC-22 production facilities). • Post 2012 scenario? Wait for 20th MOP and Copenhagen…..

  7. Challenges for production phase-out • Compensation for swing plants that have already received funding for CFC production phase-out? Funding for preparation?….Continuing debate….. • Short time frame – 2010 to freeze (amendment of policy, monitoring and management framework ; quota system for producers; technical audits; calculation of baseline) • Incentivizing early phase-out and phased approach to phase-out (higher ODP) is encouraged – How to operationalize; • Options of closure (environmental clean-up); conversion or continuation (feedstock use; (use of poor quality of HCFC22?) • Calculation of lost profit compensation • Additional resources for climate cost – Availability? Access? • Stakeholder workshop end 2009

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