2. ENVIRONMENTAL INDICATORS Consumption of Ozone-Depleting Substances UNECE Joint Task Force on Environmental Indicators Eastern Europe, the Caucasus, Central Asia & South-Eastern Europe Geneva, 11-13 July 2011 ENVIRONMENTAL INDICATORS Consumption of Ozone-Depleting Substances UNECE Joint Task Force on Environmental Indicators Eastern Europe, the Caucasus, Central Asia & South-Eastern Europe Geneva, 11-13 July 2011 Ozone Secretariat Sophia Mylona Monitoring and Compliance Officer

3. Presentation outline Background information on the Montreal Protocol Background information on the Montreal Protocol  Key features, Institutional framework  Key obligations Data reporting Data reporting  Status of reporting  Reporting procedures  Issues related to the quality of reported data  Major challenges Concluding remarks Concluding remarks

4. 1985 VIENNA CONVENTION FOR THE PROTECTION OF THE OZONE LAYER Montreal Protocol on Substances that Deplete the Ozone Layer (ODS)  Adopted 16 September 1987  196 Parties – Universal Ratification  Contains mandatory timetables for the phase out of ODS - Original Protocol: 5 CFCs & 3 halons; - Current: 96 ODS  Amended 4 times (1990, 1992, 1997, 1999)  Adjusted 6 times (1990, 1992, 1995, 1997, 1999, 2007) As Parties ratify the various Amendments they assume new data reporting responsibilities

5. Development of Parties’ Ratification Status

6. Institutional Framework under the Montreal Protocol Innovative features: Assessment Panels, Non-Compliance Mechanism and Financial Mechanism Meeting of the Parties ImplementationCommitteeExCom/ Multilateral Fund UNEP/DTIEUNDPUNIDO World Bank Multilateral Fund Secretariat Assessment Panels Scientific Environmental Effects Technology & Economics Other MEAs Ozone Secretariat UNEP Bureau of the Meeting of Parties

7. Party classification under the Montreal Protocol EECCA/SEE Region Developing countries (Article 5 Parties) Developing countries (Article 5 Parties) - eligible for MLF funding Albania, Armenia, Bosnia and Herzegovina, Georgia, Kyrgyzstan, Montenegro, Republic of Moldova, Serbia, The former Yugoslav Republic of Macedonia, Turkmenistan Developed countries (non-Article 5 Parties) - CEIT, funded by Global Environment Facility (GEF) - CEIT, funded by Global Environment Facility (GEF) Azerbaijan, Belarus, Kazakhstan, Russian Federation, Tajikistan, Ukraine and Uzbekistan

8. Regional Networks of National Ozone Units (NOUs) Set up under the Multilateral Fund to build the National Ozone Officers’ (NOOs) skills to implement and manage national ODS phase-out activities Set up under the Multilateral Fund to build the National Ozone Officers’ (NOOs) skills to implement and manage national ODS phase-out activities Networking activities Networking activities - Annual and follow-up workshops - Regular communication between UNEP and NOOs - Thematic and contact group meetings - Country-to-country cooperation Results: Improved data reporting, policy making, Results: Improved data reporting, policy making, Refrigerant Management plans and development of peer pressure among ODS Officers to take early steps to implement Refrigerant Management plans and development of peer pressure among ODS Officers to take early steps to implement the Protocol Key players: NOOs, Implementing Agencies, Regional Coordinators (based at UNEP’s Regional Offices) Regional Coordinators (based at UNEP’s Regional Offices)

9. Compliance Assistance Programme - Regional Networks

10. Key Obligations under the Montreal Protocol Control Measures: phase out schedules Control Measures: phase out schedules Common but differentiated approach: Developing Common but differentiated approach: Developing countries given 10 years’ grace period countries given 10 years’ grace period Regulatory measures: Regulatory measures: - Establishment of Licensing systems - Trade controls Data Reporting Data Reporting - Imports, Exports, Production, Destruction of ODS, Trade with non-Parties Trade with non-Parties - Exempted uses (if relevant): Feedstocks, Essential uses, Critical or Quarantine and Preshipment applications of methyl bromide, Emergency uses

11. Non-Article 5 Party Control Measures 2010-2030 (Consumption) SubstanceBaseline2010201520202030 CFCs, Halons 1986100% Other CFCs, Carbon tetrachloride, Methyl chloroform 1989100% HCFCs 1989 * 75%90%99.5%100% HBFCNone100% BCMNone100% Methyl Bromide 1991100% * 1989 HCFC Consumption + 2.8 CFC Consumption

12. Article 5 Party Control Measures 2010-2040 (Consumption) SubstanceBaseline201020152020202520302040 CFC,Halons Average of 1995-1997100% Other CFCs, Carbon tetrachloride Average of 1998-2000 100% Methyl chloroform Average of 1998-2000 70%100% HCFCs Average of 2009-2010 10%35%67.5% 100%* 100% HBFC, BCM None100% Methyl Bromide Average of 1995-199820%100% * Allowing for servicing an annual average of 2.5% during 2030-40

13. Regulatory measures: Licensing systems Within 6 months of ratifying the 1997 Montreal Amendment Parties must establish and implement a system for licensing the import and export of all new, used, recycled and reclaimed ODS Within 6 months of ratifying the 1997 Montreal Amendment Parties must establish and implement a system for licensing the import and export of all new, used, recycled and reclaimed ODS All parties in the EECCA/SEE region have reported to the Secretariat that they have established and operate licensing systems All parties in the EECCA/SEE region have reported to the Secretariat that they have established and operate licensing systems However, more than cursory compliance is essential to ensure ODS phase-out – The efficiency of operation and enforcement of licensing systems remains a challenge

14. Data Reporting obligations (Article 7) Each Party must report its ODS data annualy Each Party must report its ODS data annualy Reported data must include (as appropriate): Reported data must include (as appropriate):  Imports, Exports, Production, Destruction of ODS, Trade with non-Parties Trade with non-Parties  Exempted uses (if relevant): Feedstocks, Essential uses, Critical or Quarantine and Essential uses, Critical or Quarantine and Preshipment applications of methyl bromide, Preshipment applications of methyl bromide, Emergency uses Emergency uses Data reporting forms and reporting instructions are available at the Ozone Secretariat’s website http://ozone.unep.org/new_site/en/ozone_data_tools.php Data reporting forms and reporting instructions are available at the Ozone Secretariat’s website http://ozone.unep.org/new_site/en/ozone_data_tools.php

15. Data reporting…. cont Annual Data Reporting: Due 30 September each year, starting the year Due 30 September each year, starting the year the Protocol or relevant Amendment enters into the Protocol or relevant Amendment enters into force for the Party force for the Party Parties are encouraged to report by 30 June Parties are encouraged to report by 30 June each year (decision XV/17) each year (decision XV/17) All reported (aggregated) figures to date can be accessed through the Secretariat’s web site: http://ozone.unep.org/new_site/en/ozone_data_tools_access.php

16. Annual data reporting Annual data reporting Parties reporting data within 6 and 9 months

17. Global ODS Consumption 97.4 % reduction in all ODS by all Parties by 2009

18. Consumption of ODS in the EECCA/SEE Region 98.6% of the Parties’ baseline phased out by 2009

21. Reporting procedure Parties report their ODS data to the Ozone Secretariat through their designated Authorities which act as focal points Parties report their ODS data to the Ozone Secretariat through their designated Authorities which act as focal points The Secretariat reviews the submitted data to detect any apparent discrepancies and check compliance with the Protocol provisions The Secretariat reviews the submitted data to detect any apparent discrepancies and check compliance with the Protocol provisions Cases of Potential Non-Compliance are subject to the established Non-Compliance Procedure and are eventually brought to the attention of the Implementation Committee for its consideration Cases of Potential Non-Compliance are subject to the established Non-Compliance Procedure and are eventually brought to the attention of the Implementation Committee for its considerationHowever, The Ozone Secretariat does not have the mandate to question/assess the quality of reported data

22. Reporting procedure… cont Countries that receive financial assistance from Countries that receive financial assistance from the MLF/GEF to phase out their ODS must the MLF/GEF to phase out their ODS must report their sectoral data to those institutions report their sectoral data to those institutions Those reports are evaluated by the MLF/GEF Those reports are evaluated by the MLF/GEF Are you aware of any such activities in your country? Are you aware of any such activities in your country? Close interaction with your National Ozone Officers is Close interaction with your National Ozone Officers is important in this regard important in this regard

23. Definition of ODS Consumption under the Protocol Annual controlled consumption is defined as: Annual controlled consumption is defined as: “Consumption” = “Production” + Import – Export where: “Production” = Production – Destruction – Feedstock use With the exemption of the Russian Federation which is an ODS producer and exporter, all other countries in the region are predominantly ODS importers; Thus, data quality depends primarily on the reliability of imported data

24. Reliability of reported data - Major challenges  National ODS legislation may not be as comprehensive as it should or may not be implemented effectively  National licensing systems for ODS import/export may not be operating or enforced effectively, resulting to misreporting and possibly illegal trade  Countries with ODS destruction facilities may not be reporting the ODS quantities destroyed  Co-operation between all relevant authorities and stakeholders at the national level or regional/global level (in cases involving international trade) may be inadequate or even absent Participation of countries in the informal Prior Consent (iPIC) Procedure has prevented several cases of illegal trade in ODS

25. Informal Prior Informed Procedure (iPIC) on ODS Trade A voluntary and informal mechanism of information exchange on intended trade between the authorities in importing and exporting countries which are responsible for issuing ODS trade licenses (NOUs) A voluntary and informal mechanism of information exchange on intended trade between the authorities in importing and exporting countries which are responsible for issuing ODS trade licenses (NOUs) Aims to assist member countries to implement licensing systems effectively so that they do not exceed their maximum allowable consumption levels under the Protocol Aims to assist member countries to implement licensing systems effectively so that they do not exceed their maximum allowable consumption levels under the Protocol Key elements: Key elements:  Exporting countries check the copy of import licenses voluntarily before issuing export licenses  Importing countries inform exporting countries of their registered importers and the ODS quantities allocated to them for a specific year

26. Informal Prior Informed Procedure (iPIC) on ODS Trade  Established in 2005/2006 in South East Asia on a pilot basis involving NOUs and their customs counterparts  In 2008 6 countries of the ECA Ozone Network (Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) and one country from Latin America (Colombia) joined the iPIC procedure  In the first 2 months of 2009, 6 more countries from Latin America (Bahamas, Belize, Guyana, Jamaica, St. Lucia and Trinidad & Tobago) joined in  The European Union fully participates in the iPIC since 2007  Network countries have proposed that major exporting countries such as China, India and the Republic of Korea work closely with importing countries in the region

27. The ECA Ozone Network Includes 12 Article 5 countries from the Balkan, Caucasus and Central Asia region Includes 12 Article 5 countries from the Balkan, Caucasus and Central Asia region Trade partners including the EU, China and Russia are involved in a project “ECA enforcement network of Customs & Enforcement Officers” and cooperate closely on the prevention of illegal ODS trade Trade partners including the EU, China and Russia are involved in a project “ECA enforcement network of Customs & Enforcement Officers” and cooperate closely on the prevention of illegal ODS trade During the period 2007-2009, more than 1000 metric tonnes of allegedly recycled CFCs were illegally traded and investigations have been initiated. Such illegal trade could have been prevented through simple phone calls or email exchanges between importing and exporting countries applying the iPIC procedure During the period 2007-2009, more than 1000 metric tonnes of allegedly recycled CFCs were illegally traded and investigations have been initiated. Such illegal trade could have been prevented through simple phone calls or email exchanges between importing and exporting countries applying the iPIC procedure

28. Decision XVII/16 (Dakar, 2005) Preventing illegal trade in controlled ozone-depleting substances “…. 4. To request the Ozone Secretariat to revise the reporting format resulting from decision VII/9 to cover exports (including re-exports) of all controlled ozone-depleting substances, including mixtures containing them, and to urge the Parties to implement the revised reporting format expeditiously. The Ozone Secretariat is also requested to report back aggregated information related to the controlled substance in question received from the exporting/re- exporting Party to the importing Party concerned; ……”

29. Import/Export data discrepancies in ECA/CEIT countries- 2009 (Aggregated amounts in MT) Importing countryImported ODS (New) Exported ODS (New) Exporting country Albania97.3736.5China, EU, Turkey Armenia141.9 Azerbaijan41.3 Belarus179.361.9A non-A5 Party Bosnia & Herzegovina 82.7645.8Croatia, EU Croatia168.018586.5China, EU, India Georgia83.2 Kazakhstan1179.4170.9 China, EU, Rep. of Korea, Russian Fed. Kyrgyzstan75.66 Montenegro17.1415.7India

30. Import – Export data discrepancies in 2009…cont (Aggregated amounts in MT) Importing countryImported ODS (New) Exported ODS (New) Exporting country Republic of Moldova21.10.7A non-A5 Party Russian Federation9072.810377.6USA, EU, China, India Serbia181.749.8USA, EU, China, Croatia Tajikistan48.8 The FYR of Macedonia 57.345.7Croatia, India, Turkey Turkey9072.98068.7China, EU, India, Rep. of Korea Turkmenistan139.2 Ukraine1015.61742.8China, EU Uzbekistan32.615.7Turkey

31. Import – Export data discrepancies …cont (Aggregated amounts of new and recovered substances in MT) ECACEITTotal Reported imports10139.211893.122032.3 Discrepancies (MT) 1861.2 5097.06958.3 Discrepancies/trade volume (%) 18%43%32%

32. Import – Export data discrepancies …cont (per substance in MT) Substance Discrepancy (MT) Discrepancy (%) CFC348.45% HCFC6453.093% Methyl bromide142.22% Methyl chloroform0.00% Halons14.10% Carbon tetrachloride0.50%

33. Several reasons for detected discrepancies Imports greater that Exports Imports greater that Exports - Some exporting countries may not be reporting their export destinations destinations - Exporting countries may be underestimating their exports - Importing countries may be overestimating their imports Exports higher than Imports Exports higher than Imports - Exporting countries may be overestimating their exports - Importing countries may be underestimating their imports – this case may place the importing country into non-compliance this case may place the importing country into non-compliance under the Protocol under the Protocol Whatever the reason, understanding the cause(s) of such discrepancies and taking measures to prevent them from reoccurring results in improving implementation of national licensing systems and combating illegal trade

34. Challenges related to HCFCs HCFCs to be phased-out by 2030 in the developed/CEIT countries and by 2040 in the developing countries HCFCs to be phased-out by 2030 in the developed/CEIT countries and by 2040 in the developing countries The MLF is currently assisting several developing countries to prepare their HCFC Management Plans (HPMPs) including checking the reliability of national ODS inventories – This has resulted in several developing countries requesting revision of their ODS consumption figures for one or several years, including those for 2009 (baseline year) The MLF is currently assisting several developing countries to prepare their HCFC Management Plans (HPMPs) including checking the reliability of national ODS inventories – This has resulted in several developing countries requesting revision of their ODS consumption figures for one or several years, including those for 2009 (baseline year) From the countries in the EECCA/SEE region, Tajikistan has requested revision of its HCFC baseline year (1989) so far From the countries in the EECCA/SEE region, Tajikistan has requested revision of its HCFC baseline year (1989) so far Revisions of baseline data will be considered by the Protocol’s Implementation Committee at its 46 th meeting in Montreal, 7-8 August 2011 Revisions of baseline data will be considered by the Protocol’s Implementation Committee at its 46 th meeting in Montreal, 7-8 August 2011

35. Concluding remarks For the countries in the EECCA/SEE Region consumption of ODS depends greatly on imported (and to a lesser extent) exported figures For the countries in the EECCA/SEE Region consumption of ODS depends greatly on imported (and to a lesser extent) exported figures Good quality of import/export data requires efficiently enforced licensing systems and excellent coordination of relevant authorities at the national and international level, including participation in the iPIC Procedure Good quality of import/export data requires efficiently enforced licensing systems and excellent coordination of relevant authorities at the national and international level, including participation in the iPIC Procedure For producing countries, reliable consumption data depend additionally on reporting of ODS destroyed and/or used as feedstocks (if relevant) For producing countries, reliable consumption data depend additionally on reporting of ODS destroyed and/or used as feedstocks (if relevant)

36. Concluding remarks… cont. Parties are advised to review and strengthen their national data tracking procedures, to ensure proper operation of their licensing systems and to cross- check their data with the sources of their imports Parties are advised to review and strengthen their national data tracking procedures, to ensure proper operation of their licensing systems and to cross- check their data with the sources of their imports National representatives reporting to UNECE on ODS consumption as environmental indicators should co- operate closely with their countries’ National Ozone Officers to get a better understanding of the nature of ODS data reported under the Montreal Protocol (including any activities undertaken by NOOs to improve data quality and any phase-out projects those countries may have with the MLF/GEF) and resolve any inconsistencies involved National representatives reporting to UNECE on ODS consumption as environmental indicators should co- operate closely with their countries’ National Ozone Officers to get a better understanding of the nature of ODS data reported under the Montreal Protocol (including any activities undertaken by NOOs to improve data quality and any phase-out projects those countries may have with the MLF/GEF) and resolve any inconsistencies involved

37. Thank you! sophia.mylona@unep.org Thank you! sophia.mylona@unep.org http://ozone.unep.org http://unep.ch/ozone sophia.mylona@unep.org