VATIS UPDATE Article

The Ministry of Environment, Forest and Climate Change (MoEF&CC), government of India, has suggested that it will propose for the funding of foam industries to ease shift from using ozone-depleting Hydrochlorofluorocarbons (HCFC) to chemical Cyclopentane. The transition will be funded by the Executive Committee of the Multilateral fund as per the Montreal Protocol Agreement in the second stage of HCFC phase-out. Cyclopentane is a hydroflorocarbon with zero ozone depletion potential (ODP) and low global warming potential (GWP).

India is in the process of phasing out HCFC by 2030 as per the existing agreement signed by India in the Montreal protocol. HCFC is a commonly used refrigerant gas. It is also used in foam blowing agents, solvents, aerosols and fire extinguishers. India has completed its first step of phase-out, achieving the target of 10% reduction by 2015 and is now working towards phasing down 35% by 2020 in the second stage. The executive committee of multilateral fund has allowed for a 25% increase above the cost-effectiveness threshold for introduction of low-GWP alternatives.

It has also decided that SMEs in the foam sector with consumption of less than 20 metric tonnes can apply for up to 40% additional funds as per the ExCom decision 74/50 to incentivise the SMEs to shift. UNDP surveyed the foam manufacturing sector and suggested the industry to choose from the three alternatives in the survey. A study by non-profit Centre for Science and Environment said that the HFC phase down benefits few companies and brings uncertainty over the pollution these chemicals may cause. This decision will also support India’s stand in the ongoing Montreal protocol negotiations of not moving to another transition gas like HFO.