Bangkok, Thailand, 17 June 2021 – The UN Environment Programme (UNEP) OzonAction Compliance Assistance Programme (CAP), Asia and the Pacific Office organised a virtual meeting to assist National Ozone Officers from the Regional Networks of Ozone Officers for South Asia and Southeast Asia to explore different options for allocating and managing their country's hydrofluorocarbon (HFC) quota system to meet obligations under the Montreal Protocol's Kigali Amendment. Fifty-two participants (28 female and 24 male) from 19 countries in the region joined the discussions, which covered unique requirements like setting quotas in tonnes CO2 equivalent, which is a brand-new concept for the Montreal Protocol community.
Along with licensing systems, quotas are one of the lynchpins of Montreal Protocol compliance: they are regulatory systems that set the maximum limit of controlled substances that can be imported into the country each year by a given company. They are divided up between all licensed importing companies and the total quantity of substances gradually reduces over time in line with the control measures of the Protocol. Without such quotas, there would be no control on the amount of gases entering the country's borders – thus putting it at risk of not meeting its commitments under this multilateral environmental agreement.
There are various ways quota systems can be designed. Since there is no "one-size fits all" approach, UNEP brings countries together to share experiences and exchange information to help each one finds the solution that works best for its circumstances. Using a hypothetical example in an interactive spreadsheet to demonstrate the entire quota allocation and management process, the meeting explored the principles and technical details of HFC quota allocation and management including calculations of the baseline in tonnes of CO2 equivalent, determination of the total national HFC quota, the importance of a reserve/buffer, and setting importer’s quotas based on historical levels of importation. The participants extensively discussed two different options to officially notify the annual quota to each importer: granting quotas in total tonnes of CO2 equivalent for all HFCs and granting quotas for each specific HFC in metric tonnes.
Different participants shared different views on the challenges that they might face. Mr. Zia Ul Islam, National Programme Manager, Pakistan, stated “HFC quota management would be more complicated than the existing HCFC quota. It might require more innovative options to handle HFC quotas, for example, allocation control per shipment basis. Pakistan is in Group 2 and the HFC control schedule will be implemented later around 2028. However, from today’s meeting, we learnt that we still have to monitor carefully the HFC annual consumption and its growth rate. If it is found that the HFC annual growth rate is high, we may need to consider introducing the quota control earlier than the obligation schedule.” Mr. Islam also mentioned that “the Ozone Cell for Pakistan will arrange the consultation session with HFC importers to provide an understanding on the new HFC quota allocation system with the support from UNEP.”
Ms. Amy Charlene Wong, Senior Assistant Director/ NOU Malaysia mentioned that for her country, “The existing HCFC quota allocation in Malaysia is substance-wised in metric tonnes. In Malaysia, the HFC quota has to be assigned in metric tonnes to be consistent with the established e-Permit system to track and link with the Customs Information System. The meeting enabled us to understand the concept of tonnes CO2 equivalent and refine the quota allocation consultation process to turn the principle into real practice. Based on Malaysia’s current system, we are considering that, during the consultation process on quota allocation, each importer will be given the maximum limit of HFCs that the importer can import during the coming calendar year in tonnes CO2 equivalent. Each importer has the flexibility to decide and confirm with the National Ozone Unit the amount of each single/blend of HFCs and metric ton quantity that it would plan to import in the coming year. The agreed amount between the National Ozone Unit and the importer will be considered as substance-wise quota.”
Subsequently, Mr. Shaofeng Hu, Senior Montreal Protocol Regional Coordinator, UNEP, stated that “Unlike the HCFC quota, HFC quota allocation and management could be more complex as all countries have to manage multiple HFCs and mixtures at the same time. The thematic meeting today set the stage for Article 5 countries to understand the allocation and management of HFC quotas with different options. Each option has pros and cons and there is no one-size-fits-all scenario for all countries. Therefore, countries are encouraged to assess their country context and discuss with their national stakeholders to determine the most appropriate option to manage HFC quotas for importers.”
This thematic meeting is the third in a series of thematic workshops that UNEP CAP will conduct in the region following a survey of Network members conducted in November 2020 and as per UNEP’s approved 2021 CAP Workplan.
For more information:
Mr. Shaofeng Hu
Senior Montreal Protocol Regional Coordinator
UNEP, Compliance Assistance Programme (CAP)
Asia and Pacific Office
Email: hus@un.org
