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European Parliament 2014-2019

Committee on the Environment, Public Health and Food Safety

19.11.2015

MISSION REPORT

to the 27th Meeting of the Parties (MOP27) to the Montreal Protocol on the

substances that deplete the ozone layer - Dubai, United Arab Emirates, 3-5

November 2015

Committee on the Environment, Public Health and Food Safety

Members of the mission:

Herbert Dorfmann, Chair (PPE)

Dubravka Šuica (PPE)

Seb Dance (S&D)

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I. BACKGROUND ON MOP27

Introduction

The MOP27, organised from 1 to 5 November 2015, focused on discussions on amending the

Montreal Protocol to include the phase-down of the production and consumption of HFCs

(hydrofluorocarbons) in its ambit. The meeting also covered routine procedural items such as

permitting the use of methyl bromide for plant fumigation purposes and permitting the use of

carbon tetrachloride for laboratory uses.

The Commission represents the EU on matters of substance in relation to ozone depleting

substances (ODS) and HFCs. The Presidency plays its role in relation to financial issues, and

in particular the Multilateral Fund, to which only the Member States contribute. In both cases

EU positions are achieved through co-ordination meetings with the Commission and the

Member States.

The Commission welcomed the presence of a delegation of the European Parliament, as it

increases the visibility of the EU and signals its determination to reach an agreement on an

HFC phase-down under the Montreal Protocol.

The Montreal Protocol has accomplished its objective to nearly phase-out ozone depleting

substances (CFCs and HCFCs) in industrialised countries; and is on a good way to achieve

this in developing countries. The European Union has been a leader in this process and has

moved faster than the Montreal Protocol requires.

HFCs issue

Action on HFCs is urgently needed to address their alarming increase. The EU supports an

agreement to phase-down HFCs under the Montreal Protocol complementing a climate

agreement under the UNFCCC. An early HFC agreement, with an early start date, is essential

to avoid a large-scale phase-in of HFCs. It also provides the right signal to industry to

continue designing alternatives and to avoid introducing obsolete HFC technologies.

a. Prior developments

The EU and India had both, for the first time in 2015, presented proposals to phase-down

HFCs. These proposals join two proposals from North America (Canada/USA/Mexico) and

Micronesia (and a number of other island states) that have been presented in similar fashion

since 2009. The EU proposal was conceived as a compromise and seeks to address

developing country concerns such as the need for growth in HFC use in certain sectors of

their economies. It provides more flexibility to these countries and links directly to the HFC

phase-out, thus incentivising "leapfrog", i.e. to go from ODS directly to sustainable

alternatives that do not affect the climate significantly. The EU proposal has informally

received great interest from many countries, including important players such as China, South

Africa and Brazil.

In the build up to MOP27, the North Americans signaled that they would amend their

proposal. In a first step they proposed to adopt a scaled-back amendment at the MOP. It

would contain only the first two reduction steps (in 2019 and 2024) for developed countries

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and a freeze in HFC consumption and production in 2021 for developing countries. At the

MOP, Parties would also agree to pursue a second step in 2016 negotiating the outstanding

aspects of the phase-down.

Only two/three years ago an important group of countries was adamantly opposed to even

discussing HFCs under the Montreal Protocol. Most of them have a more nuanced stance

(India, China and Argentina) to even a slightly or openly positive (Brazil, South Africa)

attitude today.

Since the launch of the EU proposal, significant progress was made. An extraordinary

meeting with a technical workshop on HFC management was held in Bangkok in April 2015.

It agreed on informal work to set a mandate for a formal contact group to be agreed at a

meeting in July 2015. Unfortunately, consensus on the mandate was not reached, with

staunchest opposition coming from the Gulf countries and Pakistan, with India playing an

intransigent role. However, the meeting in July allowed for discussions on details of the

amendment proposals in plenary, which was unprecedented. In Dubai, the July meeting

continued for two days (29-30 October) where a mandate was agreed on the establishment of

a contact group on the feasibility and ways of managing HFCs.

A number of countries insisted on the need to solve of a number of issues before an

amendment could be considered. The most important was the provision of sufficient funding

to developing countries; another was the availability of suitable alternatives to HFCs for some

types of equipment under high ambient temperatures (such as in the Gulf countries). Other

matters such as IPR issues, and legal overlaps as well as synergies between the Montreal

Protocol and the UNFCCC were also raised.

The topic has received widespread attention from world leaders recently (e.g. declarations

followingG7 summits 2015 and 2014; G20 summit 2014; Ban Ki-Moon summit September

2014; bilateral declarations at heads of state level between EU and China, EU and US, US and

India, US and China and US and Brazil in 2014 and 2015). Most recently, in the US-China

Joint Presidential Statement on Climate Change from 25 September 2015, both countries

announce to continue their bilateral and multilateral cooperation on HFCs.

b. EU leadership and legislation

The EU has assumed the role of a credible leader by showing how to effectively reduce

emissions from HFCs and other fluorinated gases. The 2014 F-gas Regulation will reduce EU

emissions to levels consistent with those proposed by even the most ambitious amendment

proposals on the table. The F-gas Regulation has already become a global benchmark against

which many industrialised countries, including the US, are measuring their own efforts on

HFCs, and is significantly affecting the manufacturing industry all over the world, in

particular in China. Sectoral Global Warming Potential limits introduced for refrigerants by

the F-gas Regulation appear to be the basis for new rules proposed in the US, Australia and

Japan as well as determining refrigerant choices by equipment manufacturers in China and

elsewhere.

Other issues on ozone depleting substances

Each year decisions are made during the MOP on granting exemptions for particular uses of

ozone-depleting substances by individual Parties. This year there was one essential-use

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nomination and seven critical-use nominations. China asked for an essential-use exemption

for 2016 for laboratory and analytical uses of carbon tetrachloride for the testing of oil, grease

and total petroleum hydrocarbons in water. Australia, Canada, the US, Argentina, China,

Mexico and South Africa asked for critical-use exemptions for methyl bromide for 2016 and

2017 for plant, meat and structure fumigation purposes. The EU encouraged Parties to

decrease their nominations and requests phase-out plans and end-dates.

The EU and Switzerland prepared a draft decision on the Terms of Reference for the

Assessment Panels’ next quadrennial report. The draft decision listed areas of focus for the

Technology and Economic Assessment Panel, Scientific Assessment Panel and the

Environmental Effects Assessment Panel. Examples of the proposed areas of focus are an

assessment of the interaction between changes in the ozone layer and climate change, an

evaluation of trends in the concentration in the atmosphere of ODS and alternatives to ODS

(i.e. HFCs) and their consistency with reported production and consumption and an evaluation

of alternatives to ozone-depleting substances in all relevant sectors.

Another draft decision was prepared by the EU on ODS releases from industrial production

processes. ODS for chemical process feedstock uses are considered as giving rise to gradually

increasing emissions as feedstock uses are increasing worldwide. The EU considers that fully

understanding this issue as one of growing importance.

II. MISSION’S ACTIVITIES

Preparation

On 20 October 2015, a preparatory briefing was given for the participating Members by Mr

Philip Owen, Head of Unit, Transport and Ozone - DG CLIMA, European Commission. The

briefing covered the specificities of the negotiation process under the Montreal Protocol as

well as expectations for MOP 27. The main issues of interest for the ENVI mission to MOP

27 were related to the four amendment proposals on HFCs brought forward in this respect.

Members were provided with a written briefing by the Commission colleagues and with a

study on the main issues at stake at MOP 27, commissioned by Parliament in view of this

mission. Prior to their arrival, the Members also received a summary of developments during

the preparatory segment from the secretariat.

The main development of the preparatory segment 1-3 November 2015 was the establishment

of a formal contact group on the feasibility and ways of managing HFCs, following the

agreement on a mandate at the resumed session of the 36th Meeting of the Open-Ended

Working Group (OEWG 36). This represented very significant progress as forming a formal

contact group has not been possible so far since HFC amendment proposals were introduced

for the first time in 2009. It set the stage for the MOP27, which then formally discussed all

issues of HFC management including the four amendment proposals, which were also

presented by their proponents.

Bilateral meetings and debates in the plenary

- Tuesday 3 November 2015

Plenary and Contact Group negotiations

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The Members followed the discussions in the MOP27 plenary and in the contact group on the

feasibility and ways of managing HFCs.

Discussions in the formal contact group on HFCs continued. The Australian co-convenor was

joined by the Chinese Head of Delegation representing the Article 5 Parties (developing

countries), which was a very good step forward and demonstrated China`s willingness to be

constructive. The Chinese co-convenor explained the process to follow, focusing on the

challenges as a first step to generate solutions. Countries were encouraged to name the most

relevant challenges and possible solutions. In the ensuing discussions there were some

constructive contributions from a number of developing countries, clearly laying out their

most pressing challenges often related to financing and availability of alternatives. Important

substantial discussions were held, but some Parties were resisting moving forward quickly.

Bilateral meetings

The activities of the ENVI mission started with a meeting with Ms Tina Birmpili Executive

Secretary of the UNEP Ozone Secretariat to talk over the issues at stake, and the latest

developments at OEWG 36 and during the first two days of MOP 27. Expectations for the rest

of the meeting of the parties were also discussed, including the potential outcomes of contact

group negotiations and interconnections with the UNFCCC process.

Later in the morning, Members also had a discussion with a group of NGOs, including EIA,

the Natural Resources Defense Council (NRDC), CES and the Institute for Governance and

sustainable Development (IGSD). The representatives provided their perspective on a wide

range of issues, including challenges faced by Article 5 parties (developing countries),

possible alternatives to HFCs and the four amendments proposals on the table. They indicated

that they consider the two-step approach proposed by the United States to be the lightest form

of an amendment giving jurisdiction for introducing control measures in the future.

In the afternoon, the ENVI mission met Ms Gina McCarthy, Head of the U.S.

Environmental Protection Agency (EPA). Members were particularly interested in her views

on the impact of the Montreal Protocol process on the upcoming UNFCCC COP21 meeting to

be held in Paris. It was mentioned inter alia that the Montreal Protocol is well-suited to

address the issue of HFCs and that there is need for a clear political signal in this regard.

Furthermore, it was highlighted that in the past, when new substances were listed under the

protocol, solutions came rapidly from the industry.

Members then had a very informative meeting with Mr Patrizio Fondi, Head of the EU

Delegation to UAE, on the political system and economic situation in the U.A.E., the broader

regional geopolitical context and the EU’s diplomatic presence in the area.

In order to ensure that the ENVI mission was well informed, a debriefing on the progress of

the negotiations was organised by the European Commission and Council Presidency

represented by the Netherlands, at the end of the contact group meeting on Tuesday 3

November.

- Wednesday 4 November 2015

Plenary and Contact Group negotiations

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The Members followed the opening ceremony of the high-level segment of MOP27 as well as

discussions in the formal contact group on HFCs which continued throughout the day.

Constructive interventions were made by the EU and many other delegations on exemptions,

achieving flexibility for developing countries and on funding issues. However, at the end of

the day the co-convenors were not provided with a mandate to further guide the discussions,

due to opposition from the Gulf countries. Informal discussions took place in the evening to

see how Parties could best work together towards a positive outcome, leading to a frank

exchange of views on positions. Some Parties insisted there should be no amendment in

Dubai (Kuwait, Saudi Arabia, Argentina) and that the identified challenges should be resolved

first. The US seemed to acknowledge at this point that an amendment would not be

achievable in Dubai and that it would be ready to consider other options. The host country,

UAE, seemed committed to achieving a tangible outcome in Dubai, in the form of a roadmap

or a calendar for agreeing an amendment, codified in a decision.

Bilateral meetings

Late in the morning, the ENVI delegation met with natural refrigerants industry

representatives Mr Sidi Menad Si Ahmed, International Chief Advisor and Ms Klára

Skačanová, Deputy Manager Market Development at SHECCO. Members were informed

about possible uses for natural refrigerants and climate-friendly technologies developed based

on these substances.

This meeting was followed by an informative exchange with several chemical industry

representatives, including producers and equipment manufacturers, early in the afternoon.

Members were provided with insight on the production and applications of HFCs around the

world and on ongoing work on the development of alternative substances.

Mr Achim Steiner, UNEP Executive Director, met later the Members of Parliament and

exchange points of view on the ways of managing hydro fluorocarbons (HFCs) under the

successful Montreal Protocol, as well as on the links with the UNFCCC process and

expectations for COP21. Mr Steiner informed the delegation that a two-phased approach was

still under negotiation at MOP27, i.e. with a decision in Dubai to work to an HFC amendment

in 2016.

Members then met with The Hon Greg Hunt, Minister for the Environment of Australia,

with whom they debated possible outcomes at MOP27 and ways of advocating for a tangible

outcome at MOP27 towards the inclusion of HFCs under the Montreal Protocol. Links with

the UNFCCC process were also discussed, as well as possible cooperation under other

multilateral agreements.

A meeting with Mr Eduardo Ganem, Chief Officer of the Multilateral Fund for the

Implementation of the Montreal Protocol, concluded the programme of the day. The exchange

provided the Members of Parliament with a comprehensive overview of the functioning of the

Multilateral Fund and with extensive insight into the mechanisms used to assist developing

countries in meeting their commitments under the Montreal Protocol.

- Thursday 5 November 2015

Plenary and Contact Group negotiations

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The last day started with a debriefing by the European Commission to inform the Members

on the latest developments on the evening of 4 November and possible outcome of MOP 27.

Members then mainly followed the last critical discussions in the formal contact group, which

moved from debating content to finding a way forward. Extensive consultations took place

throughout the day in different compositions. As a result of some of these discussions, the EU

presented a text on the most important financial challenges, which was welcomed by several

delegations. Discussions continued late into the night until a wording was found that satisfied

all, calling for work within the Montreal Protocol "to an HFC amendment in 2016", also

listing the challenges and the progress made in discussing them. While the decision foresees

further work on the challenges and the need to generate solutions, several meetings including

an extraordinary MOP are foreseen for next year. This decision of the contact group was

adopted in plenary without discussion.

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ANNEX I - Mission Programme

TUESDAY 3 NOVEMBER 2015

Schedule Mission programme

09:00 - 9:30

BEGINNING OF EP MISSION PROGRAMME

Accreditation of the EP delegation, delegation meeting to update on the main

MOP27 issues discussed during the preparatory segment

09:30 - 10.00 Meeting with Ms Tina Birmpili, Executive Secretary, UNEP Ozone Secretariat

10:00 - 12:00 MOP27 Plenary on the HFCs proposals

12:00 - 13.00 Meeting with NGOs (ELA, NRDC, IGSD)

13:00 - 15:00 Lunch

15:00 - 16:30 Contact Group meeting on the HFCs proposals

16:30 - 17:00 Meeting with Ms Gina McCarthy, Head of the U.S. Environmental Protection

Agency (EPA)

17:00 - 18:00 Meeting with Mr Patrizio Fondi, Head of the EU Delegation to UAE

18:00 - 18:30 Briefing by the Council Presidency and the Commission on the preparatory

segment of MOP27

WEDNESDAY 4 NOVEMBER 2015

Schedule Mission programme

10:00 - 11:30 OPENING CEREMONY OF HIGH LEVEL SEGMENT OF MOP 27 EVENT

Attendance of the MOP27’s Plenary Session

11:30 -12:00

Meeting with natural refrigerants industry representatives – Mr Sidi Menad Si

Ahmed, International Chief Advisor and Ms Klára Skačanová, Deputy Manager

Market Development at SHECCO

13:00 - 15:00 Lunch

14:00 - 15:00 Meeting with the chemical industry representatives (producers and equipment

manufacturers)

15:00 - 15:30 Meeting with Mr Achim Steiner, UNEP Executive Director, Khasifa room

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16:00 - 16:30 Meeting with The Hon Greg Hunt, Minister for the Environment of Australia

17:00 - 18:00 Meeting with Mr Eduardo Ganem, Chief Officer of the Multilateral Fund for the

Implementation of the Montreal Protocol

18:30 - 20:00 Reception hosted by the Ministry of Environment and Water of the United Arab

Emirates at the Conrad Hotel

THURSDAY 5 NOVEMBER 2015

Schedule Mission programme

09:30 - 10.00 Briefing by the Commission (DG CLIMA)

10:00 - 13:00 MOP27 Plenary meeting on the HFCs proposals

13.00 - 15.00 Lunch and/or Side event attendance

15:00 - 18:00 Contact Group meeting on the HFCs proposals

18.00 END OF THE EP MISSION PROGRAMME

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ANNEX II - Press release

Press information - 6-11-2015 Environment

Dubai MOP27 conference: towards an HFC amendment in 2016

As the use of HFCs in refrigerants and air-conditioners is growing

exponentially worldwide, with a global warming potential few thousand

times higher than that of CO2, the 27th Meeting of the Parties (MOP27) to

the Montreal Protocol in Dubai agreed for work towards “an HFC

amendment in 2016", for a phase down of those gases. A delegation of

MEPs, who attended the talks, welcomed the decision taken late yesterday

evening.

Six years after the first proposals to address the HFCs (hydrofluorocarbons)

under the Montreal Protocol, MOP27 agreed early this week on the

establishment of a formal contact group on the feasibility and ways of managing

HFCs. Later on, the meeting focused on the challenges that would arise from a

potential amendment to the Protocol to include the phase-down of the production

and consumption of HFCs. The meeting concluded yesterday evening with a

decision to work to an HFC amendment in 2016 and to hold an extraordinary

Meeting of Parties for this purpose.

“Parties agreed that HFCs, third generation of halocarbons should be phased-

down under the successful Montreal Protocol rather than the Kyoto Protocol or a

potential new Paris agreement, where the efforts are concentrated on CO2

emission reductions”, said EP delegation chair Herbert DORFMANN (EPP, IT).

“The progress made in the contact group on identifying challenges faced by

developing countries and yesterday’s decision on a timeline for a Protocol

amendment in 2016 send a positive political signal that the UN multilateral

process is working, in particular ahead of COP21 in Paris which will start three

weeks from now”, Mr Dorfmann added.

Background

A delegation of 3 MEPs has represented the Parliament at the high level

segment of the 27th Meeting of the Parties to the Montreal Protocol (MOP27) in

Dubai, United Arab Emirates, from 3 to 5 November 2015. The ENVI delegation

consisted of the following Members: Herbert DORFMANN (EPP, IT), Dubravka

ŠUICA (EPP, HR) and Seb DANCE (S&D, UK).

The Montreal Protocol has accomplished its objective to nearly phase-out ozone

depleting substances in industrialised countries, and is on a good way to achieve

this in developing countries. The European Union has been a leader in this

process and has moved faster than the Montreal Protocol requires. The

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Commission represents the EU on matters of substance in relation to ozone

depleting substances (ODS) and HFCs. The Presidency plays this role for

financial issues related to the Multilateral Fund to which only the Member States

contribute.

Action on HFCs is urgently needed to address their alarming increase. The EU

supports an agreement to phase-down HFCs under the Montreal Protocol

complementing a climate agreement under the UNFCCC.

The EU has assumed a leading role by showing how to effectively reduce

emissions from HFCs and other fluorinated gases. The F-gas regulation,

adopted in 2014, will reduce EU emissions to levels consistent with those

proposed by even the most ambitious amendment proposals considered at

MOP27. The F-gas regulation has already become a global benchmark against

which many industrialised countries including the US are measuring their own

efforts on HFCs, and is significantly affecting manufacturing industry all over the

world, in particular in China.

Further information 27th Meeting of the Parties to the Montreal Protocol Committee on the Environment, Public health and Food safety

Disclaimer: this is an informal message intended to help journalists covering the work of the European Parliament. It is neither an official press release nor a comprehensive record of proceedings.

Baptiste CHATAIN

Press Unit

(+32) 2 28 40992 (BXL)

(+33) 3 881 74151 (STR)

(+32) 498 98 13 37

envi-press@europarl.europa.eu

@EP_Environment

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Annex III - Advance, unedited Decision XXVII/1

Dubai Pathway on Hydrofluorocarbons (HFCs)

10 November 2015

Twenty-Seventh Meeting of the Parties to the Montreal Protocol

on Substances that Deplete the Ozone Layer

Dubai, United Arab Emirates, 1–5 November 2015

Advance, unedited compilation of the decisions adopted by the Twenty-

Seventh Meeting of the Parties to the Montreal Protocol

Decision XXVII/1: Dubai Pathway on Hydrofluorocarbons (HFCs)

Recognizing the MPs history of success in achieving collaborative and consensus based

outcomes and that HFCs are replacements for the ODS that Parties to the MP are already

successfully phasing out,

1. Work within the Montreal Protocol to an HFC amendment in 2016 by first resolving

challenges by generating solutions in the contact group on the feasibility and ways of managing

HFCs at Montreal Protocol meetings;

2. Recognize the progress made at the 27th MOP on the challenges identified in the

contact group mandate agreed at the resumed 36th OEWG (contained at Annex 1) on feasibility

and ways of managing HFCs, including development of a common understanding on issues

related to flexibility of implementation, 2nd and 3rd stage conversions, guidance to the ExCom,

enabling activities for capacity building, and the need for an exemption for high ambient

temperature countries; and endorse the concepts in Annex 2;

3. Recognize that further progress still needs to be made in particular with respect to

other challenges identified in the contact group mandate, for example conversion costs,

technology transfer and intellectual property rights;

4. Hold a series of OEWG and other meetings, including an Extraordinary Meeting of

Parties in 2016;

5. Continue consideration at the meetings mentioned in paragraph 4 above of agenda

items 6 and 7, contained in Document UNEP/Ozl.Pro. 27/1, including the submissions

contained in UNEP/OzL.Pro.27/5, 27/6, 27/7 and 27/8);