Executive Committee
OF THE
Multilateral Fund for the Implementation of the Montreal Protocol
64th MEETING
HCFC Phase out Management Plan for Annex C GROUP I Substances for
JAMAICA
Prepared by
NATIONAL ENVIROMENT AND PLANNING AGENCY
in cooperation wITh the
THE United Nations DEVELOPMENT PROGRAMME
March 2011
as per approved in the 64th ExCom, July 2011
PROJECT COVER SHEETCOUNTRY NAME / Jamaica
LEAD IMPLEMENTING AGENCY / UNDP
CO-OPERATING IMPLEMENTING AGENCY / UNEP
SUBMISSION OF COMPLETE DOCUMENTATION
Document / Yes/No / Comments
Letter of transmittal / Yes
HPMP / Yes
Draft agreement / Yes
MYA tables (on-line) / No
Technical review (where applicable) / NA
Executive summary / Yes
DATES OF RATIFICATION OF AMENDMENTS TO THE PROTOCOL
Copenhagen / 6th November 1997 / Beijing / 24th September 2003
Comments:
HCFC REGULATIONS IN PLACE
Regulation / Yes/No / Comments
HCFC regulation / No / Ministerial Orders under the trade Act to be prepared
HCFC licensing system / No / Process started to prepare Ministerial Orders regarding the licensing systems
HCFC quota system / No / Process started to prepare Ministerial Orders regarding Quota system
SUBMISSION OF ODS DATA REPORTS
Report / Yes/No / Year reported data / Comments
Country programme / Yes / 2009
Article 7 data / Yes / 2009
Calculated HCFC baseline (ODP tonnes) / 16.3
Starting point for aggregate reductions in HCFC consumption (ODP tonnes) / 16.3
Explain any data discrepancies:
HPMP DOCUMENT
Servicing only / Manufacturing only / Servicing and manufacturing / x
Freeze and 10% / Freeze, 10% and 35% / x
Main components included / Yes/No
Overarching strategy / Yes
Strategy and action plan for stage I / yes
Co-financing included / No
Impact on the environment / Yes
Implementation work programme and timeframe included / Yes
Implementation modalities (project monitoring unit) / Yes
FUNDING
Funding consistent with guidelines (servicing sector, cut-off date, second stage, HCFC-141b imported in polyols, cost effectiveness, technology upgrade, foreign ownership, export to non-Article 5 countries) / Yes
Funding of last tranche requested at the last year of implementation: / Yes
Priority given to manufacturing over servicing sector (if applicable) / Yes
Justification for not addressing first HCFC-141b (if applicable) / No
1
TABLE OF CONTENTS
Executive Summary 5
1. INTRODUCTION 10
1.1 Background information 10
1.2 ODS policy/legislative/regulatory and institutional framework 10
1.3 Stakeholders 12
1.4 ODS Phase out programme 13
2.0 HCFC CONSUMPTION 17
2.1 Methodology 17
2.2 HCFC Consumption Data 18
2.3 Sectoral Distribution of HCFC Consumption 24
2,4 Sectoral consumption 26
3.0. PHASE OUT STRATEGY 27
3.1 Overarching Phase out Strategy 27
3.1.1 Technology Support to the Service Industry: 29
3.1.2 Manufacturing Conversion: 30
3.1.3 Policy, Legal and Institutional Framework: 30
3.1.4 Retrofit Programme: 30
3.1.5 Monitoring, Evaluation and Reporting: 31
3.2 First Stage Implementation Programme 32
3.2.1 Foams manufacturing 32
3.2.2 HCFC Refrigeration Servicing Sector 32
3.2.3 Policy Legal and Institutional Framework 40
4.0 PROJECT COORDINATION AND MANAGEMENT 43
5.0 ENVIRONMENTAL BENEFITS 44
6.0 BUDGET AND CASH FLOW 45
ANNEX DRAFT AGREEMENT 47
EXECUTIVE SUMMARY
Jamaica completely phased out the consumption of Annex A CFCs in 2006 and has commenced the process of phasing out consumption of Annex C Group 1 HCFCs through the preparation of this Phase out Management Plan (HPMP) for this class of controlled substances.
Legal Framework
Jamaica has ratified the Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer, and all its amendments. Under the CFC phase out, the country established a licensing system to control trade in those substances and related technologies. The key provisions of that licensing regime, which will be extended to cover HCFCs as well, are:
a) The Trade (Prohibition of Importation) (Equipment Containing Chlorofluorocarbons) Order, 1998 [Prohibition Order] bans with effect from March 1, 1998 the importation of equipment and appliances which use or contain CFCs;
b) Effective July, 1, 1999, the Government of Jamaica implemented the Trade (Restriction on Importation) (CFCs) Order, under the Trade Act. This legislation provides a schedule for phasing out importation of CFCs through the administration of quotas for importers. By virtue of the Restriction Order, CFCs may only be imported under permit issued by the Ministry of Health/Pharmaceutical and Regulatory Affairs Division
c) The labelling requirements set out in Part III of the Jamaican Standard Specification Part 29, under which proper labelling of products and equipment containing or manufactured using ODS is required.
HCFC Supply:
Data on HCFC consumption reported to the Ozone Secretariat is presented in the Table A below.
Table A: HCFC Consumption Data
HCFC 22 Consumption / 2000 / 2001 / 2002 / 2003 / 2004 / 2005 / 2006 / 2007 / 2008 / 2009 / 2010ODP tonnes / 6.6 / 11.3 / 6.3 / 5.4 / 5.6 / 0.0 / 0.7 / 1.4 / 6.9 / 14.5 / 10.9
Metric Tonnes / 120.0 / 205 / 114.5 / 98.2 / 101.8 / 0.0 / 12.7 / 25.5 / 125.4 / 263.6 / 197.6
HCFC 141b
Consumption / 2000 / 2001 / 2002 / 2003 / 2004 / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
ODP tonnes / n/a / n/a / n/a / n/a / n/a / n/a / n/a / n/a / n/a / 3.74 / 3.52
Metric Tonnes / n/a / n/a / n/a / n/a / n/a / n/a / n/a / n/a / n/a / 34.0 / 32.0
On the other hand, the survey uncovered the following consumption (imports):
Table B - Quantity and type of HCFCs imported from 2007 to 2010
Refrigerants / Quantity imported (kg)2007 / 2008 / 2009 / 2010
HCFC-22 / 229,581 / 183,529 / 205,976 / 197,592
HCFC-409A / 15,779 / 2,720 / 3,944 / 8,908
HCFC-408A / 12,635 / 6,809 / 9,694 / 11,064
HCFC-406A / 0 / 136 / 82 / 272
Total (Servicing) / 257,995 / 193,194 / 272,710 / 197,590
HCFC- 141b / 27,000 / 30,000 / 34,000 / 33,000
TOTAL (Servicing + manufacturing) / 284,995 / 223,194 / 306,710 / 229,760
Total (ODP Tonnes) / 16.63 / 13.69 / 18.42 / 14.40
Total (t CO2-eq) / 493,584 / 374,471 / 426,940 / 424,704
Source: Importers
All consumption except HCFC 141b, is in the refrigeration and air conditioning service sector.
The consumption in 2007 is out of sync with the subsequent years because there were considerable investments in the country in preparation for the hosting of Cricket Works Cup in that year. Considering the data between 2008 and 2010 inclusive, we see an increase in consumption of about 11% between 2008 and 2010. However, it was decided to use an annual consumption growth of 6% to determine future demand.
The 2009 consumption data submitted to the Secretariat and the 2010 consumption data obtained from the survey were used to determine the baseline consumption as well as to extrapolate demand up to 2020. In doing this analysis, only consumption in the servicing sector was subjected to annual escalation because it is proposed later in this HPMP to convert the foams manufacturing enterprise, thereby removing its consumption permanently. The baseline consumption of HCFC 141b was then added to the refrigeration baseline to provide an accurate starting point for determining future consumption reductions. This analysis revealed the following:
Table C: Starting Point for Reduction in Aggregate Consumption (baseline)
Metric tonnes / ODP tonnesConsumption 2009 / 306.71 / 18.20
Consumption 2010 / 229.76 / 14.40
Starting Point for Aggregate Consumption / 268.24 / 16.30
Reductions to meet 2020 Protocol reduction target (35%) / 114.82 / 8.10
To be achieved through the following reductions by 2020 / Foams / 33.00 / 3.63
Refrigeration / 81.82 / 4.50
Following the conversion of the Foams manufacturing enterprise, Jamaica will need to eliminate a further 40.02 Mt of HCFCs in the servicing sector to meet its 2015 compliance target. Whereas these are the targets against which Jamaica’s compliance would be assessed, the country nevertheless proposes to pursue a more aggressive phase out schedule, as presented in Section 2.2.2 and in Table 10 below. Under this scenario the country will apply the reduction targets set out in Decision XIX/6 to the servicing sector with the view to accelerate its phase out of Annex C Group 1 HCFCs,. This approach will enable the country to eliminate 114.82 Mt (8.10 ODP t) of HCFCs from its refrigeration servicing and PU manufacturing sectors.
Overarching strategy:
The government of Jamaica has decided to follow a staged approach to meeting its HCFC phase out obligations. In this first implementation stage, Jamaica will pursue its HCFC phase out commitments in line with Decision XIX/6 up to 2020, at which time it will reassess its readiness to accelerate the phase out based on the successes of this stage as well as on the state of the technology options which may become available by that time. The overall strategy is based on four key interventions, viz:
· Technology Support to the Service Industry: This will include capacity development in good refrigeration practices, recovery and reuse of refrigerants and retrofitting systems with an emphasis on converting to natural refrigerants. The support will also include the provision of multi refrigerant recovery machines and hydrocarbon service kits to assist with the transition to zero ozone depleting potential (ODP) and low climate impact solutions.
· Conversion of the HCFC 141b based Foam manufacturing Enterprise to an ozone friendly alternative: This project is being developed and will be submitted for approval following the acceptance of this HPMP.
· Policy, Legal and Institutional Framework: Guided by the successes of the CFC phase out, the lessons learned will be used to develop the policy, legal and institutional support frameworks to support the phase out of HCFCs.; and
· Monitoring, Evaluation and Reporting: The complexity of this HPMP will require careful monitoring of project execution, assessment of results achieved against targets and reporting on achievements, all of which this component will be designed to achieve.
First Stage Implementation:
The following represents the overall phase out strategy, with the first two columns representing the first stage interventions activities:
Table D: Implementation Plan:
Interventions / Time lineUp to 2020 / Up to 2025 / Up to 2030
Technical support to the service industry
Training in good service practices, including recovery and reuse of refrigerants
Training in natural refrigerant technology
Training in Retrofitting of HCFC based equipment
General equipment retrofits
Specific Equipment Retrofits
Provision of recovery equipment, recovery cylinders and service tools for natural refrigerants.
Foams sector
Conversion of HCFC based Foams production
Policy, Legal and Institutional
Expansion of current licensing system to include HCFCs
Establish standards for the transportation, handling and storage of refrigerants
Prohibition of imports of HCFC based equipment, whether or not pre-charged
Establish controls over exports of refrigerants and related equipment
Training of enforcement personnel
Introduction of market based incentives/disincentives
Procedures to monitor servicing of Jamaican flagged vessels
Prohibition of imports of HCFC 141b for the Foams sector
Retrofit Programme
Monitoring, Evaluation and Reporting
Continuous monitoring, evaluation and reporting on project execution
Impact:
During the first stage of implementation the following targets will be pursued:
a) Train the Trainers workshop in Good Practices, Recovery and Recycling of HCFCs and Retrofitting HCFC-based appliances to Ozone and climate friendly alternatives;
b) Subsequent training of 500 technicians in Good Servicing practices;
c) Training of 400 technicians in Recovery and Reuse of refrigerants;
d) Provision of 50 Recovery machines and related spares, consumables and recovery cylinders, capable of recovering multiple refrigerants, including HCFCs to trained technicians;
e) Training of 200 technicians in retrofitting HCFC based equipment to environmentally friendly alternatives
f) Provision of about 100 sets of Hydrocarbon Service kits to trained technicians;
g) Finalization and implementation of a licensing regime to monitor and control trade in HCFCs and related equipment;
h) Training of about 400 Customs and other enforcement personnel in enforcement of the licensing regime;
i) Provision of refrigerant identifiers to the Customs department to facilitate detection of illegal trade; and
j) Monitoring and Evaluation, and periodic reporting on progress with project implementation.
The interventions above will assist Jamaica to meet its first stage implementation goals of freezing consumption at the baseline of 16.3 ODP t by 2013, reducing consumption by 10% by 2015 and by 35% by 2020.
In so doing, the aggregate impact will be the elimination of 114.82 Mt of potential demand, with an aggregate climate benefit of 373,343 t CO2-eq by that year.
The budget and cash flow is presented in Table E below:
Table E: Budget and Cash Flow.
Year / 2011 / 2012 / 2013 / 2014 / 2015 / 2016 / 2017 / 2018 / 2019 / 2020Tranche / 1st / - / 2nd / - / - / 3rd / - / - / - / 4th
Funding / 237,450 / 0 / 100,000 / 0 / 0 / 183,000 / 0 / 0 / 0 / 58,000
1
1. INTRODUCTION
1.1 Background information
Jamaica is an island state located in the Caribbean Sea south of Cuba. It has a land area of 10,991 km2, and a population of 2,847,232 (July 2010 estimate). In 2008, 53% of the population lived in urban centres and this increases by an estimated 0.9% annually. The GDP (2009 estimate) was US$12.06 billion. The country consumed 6.345 billion kWh of electricity in 2007 and an estimated 92% of all homes are connected to the electricity grid.
1.2 ODS policy/legislative/regulatory and institutional framework
1.2.1 Status of ratification of amendments to the Montreal
Jamaica Acceded to the Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer, and its London Amendment on 31st March 1993. The country subsequently acceded to the Copenhagen Amendment on November 6th, 1997, and the Montreal and Beijing Amendments on September 24th, 2003. Jamaica is classified as an Article 5 country under the Protocol.
1.2.2 ODS legislation/regulations
A comprehensive licensing system to monitor and control trade on Ozone Depleting Substances (ODSs) was a central piece of Jamaica’s success in the early phase out of Annex A CFCs, a milestone reached in 2006. Elements of the licensing system were introduced into law as early as 1998, following approval of Jamaica’s Country Programme in 1996. The following are the Ministerial Orders under the Trade Act that comprise the legal framework to control the consumption of CFCs in Jamaica: