The Challenge

China ratified the Montreal Protocol on Ozone Depleting Substances (ODS) in 1991 and in doing so committed to comply with ODS phase out targets. The XIXth Meeting of the Parties to the Montreal Protocol in September 2007 adopted an accelerated phase-out schedule for HCFCs, for their Ozone Depleting Potential (ODP) and Global Warming Potential (GWP).

China’s Industrial and Commercial Refrigeration and Air-conditioning (ICR) Sector is one of seven HCFCs consuming/ producing sectors in the country, consuming over 40,000 metric tonnes from 2009-2010. The sector contributes about 20 billion USD to the economy and employs over 100,000 people in over 1,000 enterprises.  This sector also has a large variety of products and applications, categorised into nine sub-sectors, meaning a careful approach to HCFC reduction is required.

The Response

To comply with the 2013 and 2015 targets, the ICR sector plan project will phase out 7,971 metric tonnes (439 ODP tonnes) of HCFC consumption. The project intervention strategy includes:
•    Financial and technical investment in the conversion of production lines at about 55 enterprises in all sub-sectors development and implementation of policies and regulations for ensuring sustainable phase-out and compliance.
•    Technical assistance and training to beneficiary enterprises for effective implementation of phase-out activities.
•    Awareness increase and communications for participation and support from all the stakeholders for the targets achievement at sector level and at national level.


This sector plan is on track to meet the phase-out target of 7,971 metric tonnes (439 ODP tonnes) of HCFC consumption to contribute to China’s compliance with the 2013 and 2015 control targets, equalling to an emissions reduction of 7.66 million tonnes of CO2 annually.

At present the project has identified 17 large enterprises in six sub-sectors in which to begin the phase-out activities. Four enterprises have already signed contracts with the project, creating a cumulative total phase-out amount of over 3,000 metric tonnes already, representing 80% of the phase-out amount needed to achieve the 2013 freeze target in the sector.

A policy for a quota system control HCFC consumption by enterprises in the sector will be issued in June 2013, initially focussing on the enterprises with an annual HCFC consumption of more than 100 metric tonnes.

The stakeholders in HCFC solvent production, sales, consumption and local government administration have been well informed as to the nature of the HCFC phase out strategic plan at both sector and national level through stakeholder meetings organised by the project. Moreover, the potential beneficiary enterprises who consume HCFC have received particular training to supply them with more knowledge on how to participate in and successfully implement the phase-out scheme.

Who finances it?

Donor Amount
MLF                 US$ 61,000,000

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