United Nations Development Programme

1. Importance of Recovery & Reclamation and Retrofit Incentive Program Balaji Natarajan MPU-Chemicals Unit Sri Lanka HPMP Inception workshop 31 March 2011 United Nations Development Programme

2. Coverage • Background • Experience from previous projects • Critical success factor • Program design • Key success factors

3. Background • HCFC consumption is mainly in RAC applications – primarily servicing. • Reduction in servicing sector HCFC consumption – important for achieving reduction in HCFC consumption. • Important interventions: *Reduction in HCFC based equipment population *Reduction in waste of HCFCs *Maximising re-use of HCFCs Focus on pockets with high HCFC consumption

4. Past experience on projects Process of developing R&R projects • Identifying refrigeration servicing establishments • Procuring and distributing refrigeration recovery/recycling equipment and accessories to these establishments • Identifying candidates as Master Trainers and training them in good practices in refrigerant handling and refrigeration equipment servicing • Identifying refrigeration service technicians and training them in good practices, through the Master Trainers • Capacity-building of selected training establishments

5. Past experience on projects Main challenges in R&R program implementation • Absence of a counterpart stake or ownership (e.g. participation in the recovery/recycling equipment costs) from the recipients • Absence of standards or certification for recycled and reclaimed ODS • Absence of a commercial incentive for recovery/recycling (or reclamation) of ODS

6. Past experience on projects Main challenges in R&R program implementation • Inadequate definition of ownership and management structures for central reclamation facilities (where such facilities were installed). • High cost of central reclamation facilities - high enough to affect economic gains. • Inadequate logistics for managing the flow of recovered ODS from technicians or servicing establishments to the reclamation facility, wherever installed

7. Past experience on projects Other factors • Significant price differentials between ODS and substitutes (ODS were invariably cheaper at the time such programmes were initiated) • High cost of drop-in substitutes • High investments needed for replacing or retrofitting ODS-based refrigeration equipment

8. Critical success factors • Quantity of recoverable refrigerant gas coupled with supply of HCFCs • Price of HCFC-22 vis-à-vis substitutes • Access and knowledge : Recovery & Reclamation equipment • Standards of reclaimed HCFCs from mini-reclamation units • Counter part participation and commitment

9. R&R Program design and linkage Retrofit incentive scheme – emission reduction and reduced virgin HCFC consumption

10. Program design • Mini reclamation centres at identified locations – 8 locations planned • “Node and hub” – approach : Recovery units • High consumption pockets primary targets • Training and capacity building for operations of R&R program • Monitoring performance of use of equipment

11. Program design • Retrofit incentive scheme : residential acs, commercial and industrial units • Promoting recovery and reclamation of ref. gas while retrofitting • Policies to promote fast-track adoption of HCFC free alternatives

12. Program design • Time line Implementation to commence from 2011 • Implementation partners National Ozone Unit, Service Agencies, HCFC based ac installations and Training institutions

13. Thank you