1 Addressing HFC Consumption Under the Montreal Protocol Dr. John E. Thompson Deputy Director Office of Environmental Policy U.S. Department of State

2 Scope of Presentation Rationale for Action Linkages between ODS and HFCs 2010 North American Amendment Proposal Overview Environmental Benefits

Projected HFC Growth: 3 PNAS, 2009, Velders, et al U.S. EPA, 2009 HFC growth linked to ODS phaseout, expanding availability of air conditioning & refrigeration

Taking Action for Sound ODS Phaseout HFC Growth is direct result of ODS phaseout Montreal Protocol experience and success on HFC-sectors – Refrigeration – Air Conditioning – Foams – Aerosols – Solvents – Fire Suppression Montreal Protocol Heavily Involved in addressing HFCs – Phaseout of HCFCs currently being implemented – Multilateral Fund incentivizes transition to climate-friendly alternatives 4

Many Substitutes Available and More on the Way “ The ultimate choice of technology to phase-out HCFCs will be based on ozone depletion and also climate impact, health, safety, affordability and availability, as Decision XIX/6 requires” May 2010 TEAP XXI/9 Task Force Report Assessment Of HCFCs and Environmentally Sound Alternatives 2010 TEAP Progress Report – Substitutes for many sectors and sub-sectors available – Additional substitutes under development – Global acceptance for alternatives strengthening

North American Proposal Control HFC production and consumption Control by-product emissions of HFC-23 Covers 20 HFCs, including 2 HFOs Phasedown, not Phaseout of HFCs – Baseline is combination of HCFC and HFC consumption (allows some growth) – Alternatives already available or in pipeline in some sectors (MVAC, domestic refrigeration, foams) – Alternatives unavailable in a few sectors (MDIs) – Caps initiate in 2014 and 2017 – Plateau 15% of Baseline, GWP-weighted (2033 and 2043) Ways to Achieve Phasedown – Transition out of HFCs – Smaller Charge Sizes – Move from High to Low GWP HFCs

7 Trilateral Proposal Phasedown Schedule

Trilateral Amendment Proposal HFC-23 Byproduct Control – From HCFC-22 Production – Significant HFC-23 Emissions Uncontrolled – By-product emissions subject to control Obligation eligible for Multilateral Fund assistance – Additional benefits of 6,000 MtCO2eq by 2050 Technical and Financial Support – MLF – Incremental cost model – has worked in these sectors – Bigger problem if we wait Complements but leaves unchanged UNFCCC obligations – Supports global efforts to reduce GHGs – Leave HFCs in UNFCCC basket – accounting and reporting

9 Substantial Climate Benefits Possible Trilateral Proposal global cumulative benefits: – ~3,000 MtCO 2 eq* through 2020 Developed country Parties = 3,000 MtCO 2 eq Developing country Parties = 150 MtCO 2 eq – ~88,000 MtCO 2 eq through 2050 Developed country 5 Parties = 43,000 MtCO 2 eq Developing country Parties = 45,000 MtCO 2 eq EPA’s Analysis of HFC Production and Consumption Controls: ntrols.pdf *MtCO 2 eq is the same as MMTCO2eq

consumption reductions emission reductionsemissions North American Proposal Benefits MMTCO 2 eq

11 Final Thoughts Montreal Protocol appropriate vehicle – HFCs use tied to ODS phaseout – Successful global agreement – Effective financial mechanism – Sector expertise Known alternatives, technologies, and better handling can reduce HFC consumption Developed countries start transition Significant near-term climate benefits