Key Outcomes of the 77th and 78th Meetings of the Executive Committee South Asia Ozone Officers Network Meeting Agra, In

1. Key outcomes of the 77th and 78th meetingsof the Executive Committee South Asia Ozone Officers Network Meeting Agra, India, 23-26 May 2017

2. Outline of presentation • ExCom meetings and membership in 2016 and 2017 • Issues considered and decisions taken at the 77thmeeting • Issues considered and decisions taken at the 78thmeeting • Matters for consideration at the 79thand 80thmeetings • Guides prepared by the Secretariat Separate presentation on criteria for funding HFC phase-down (document 78/5)

3. ExCom meetings in 2016

4. ExCom meetings in 2017

5. ExCom meetings in 2017 (decisions 77/59 and 77/60) • A four-day special meeting would be held early in 2017 to address matters related to the Kigali Amendment arising from decision XXVIII/2, and potential additional contributions • Two meetings from 2017 onwards, preferably in the second or third week of June for the first meeting, and in late November or the first week of December for the second meeting, with the possibility of holding an additional brief meeting if required (project proposals or specific requests from the MOP) • Agency progress reports considered at the first meeting of the year if the first meeting starts on or after 1 July

6. Items considered at the 77th meeting • Status of contributions and disbursements • Status of resources and planning including tranche submission delays • Monitoring and evaluation • Programme implementation including agency progress reports as at December 2015 • Country programme data and prospects for compliance • 2017-2019 business plans • Project proposals including and also CAP, core unit costs of agencies • US$92.1 million plus US$12.7 million support costs approved for 133 investment projects and work programme activities in 66 countries • Policy issues: 28thMOP, operation of the ExCom, incremental costs for heat exchanger manufacturing lines • Accounts of the Multilateral Fund, Secretariat budget • Production sector

7. Country programme data • Importance of timely accurate CP data: • Sole source of HCFC sector consumption data in A5 countries • Needed for various Secretariat’s analysis to help ExCom decision making process • Allows timely assessment of countries’ prospects of compliance and progress in consumption reduction • Letters were sent to the governments of countries with outstanding 2014 and 2015 CP data reports, urging them to submit the reports as soon as possible, noting that, without them, the relevant analyses of ODS consumption and production levels could not be undertaken by the Secretariat (decision 77/15)

8. Monitoring and Evaluation • 2016 consolidated project completion report (PCR) (decision 77/4) • Outstanding PCRs must be submitted to the 79thmeeting or reasons for not doing so and the schedule for their submission • Lessons learned in PCRs should be clear, well written and thorough • Lessons learned should be taken into consideration when preparing and implementing future projects • Final report on the evaluation of HCFC phase-out projects in the refrigeration and air-conditioning manufacturing sector (decision 77/6) • ExCom invited bilateral and implementing agencies to apply, when appropriate, the findings and recommendations of the evaluation in the design and implementation of projects under stage II of the HPMPs. • Monitoring and evaluation work programme for 2017 (decision 77/7) • Second phase of the evaluation of chiller projects • TOR and budget for the evaluation of the refrigeration servicing sector will be submitted to the 79thmeeting

9. Consolidated progress report ExCom decided inter alia: • Bilateral and implementing agencies were urged to complete and submit, by January 2017, as many reports as possible on surveys of ODS alternatives to enable the Secretariat to provide an analysis of the results of such surveys for consideration by the ExCom at its 78th meeting (decision 77/8(h))   • No more than two institutional strengthening projects should be ongoing at the same time (decision 77/8(i)

10. Tranche submission delays • Issue considered at each meeting • Impact of delayed submissions • Ozone layer and environment, and climate if HCFC phase-out is delayed • Increased risk of non-compliance, although IAs had indicated unlikely impact on compliance, and/or related countries were in compliance with control targets • Impact on business planning including the carry-over from one triennium to the next • 49 out of 91 activities were not submitted to the 77thmeeting because: • Government decisions; endorsements; changes in the NOU; structural change (21) • Lack of mandatory verification report (19) • Funds from previous tranches still available; delays from the previous tranche (10) • Disbursement of previous tranche below the 20 per cent threshold (8) • Delays in implementation of investment components (5) • Security issues (5) • Signing of agreements (4) • Lead agency not ready for submission (4) • Progress and/or financial reports not submitted (2) Letters were sent to Governments urging them to address underlying issues including three SEAP countries (decision 77/3)

11. 2017-2019 business plans • ExCom endorsed the 2017-2019 consolidated business plan of the Multilateral Fund (decision 77/27) • Adjusted based on the proposals made by the Secretariat, the addition to the 2017 business plan of the HPMPs and IS projects from the 2016 business plan that had been deferred at the 77th meeting, and the values for HPMPs approved or revised in principle at the 77th meeting (decision 77/27(a)(b)) • Implementing agencies would provide a detailed report to the 79thmeeting on the feasibility studies of using not-in-kind technologies (decision 77/27(e)) • Performance indicators were approved for UNDP, UNEP, UNIDO and the World Bank (decisions 77/29(b), 77/30(b), 77/31(b), and 77/32(b)).

12. Issues identified during project review • Funding withheld pending verification reports or meeting specific conditions (decision 77/33) • At the 76thmeeting several HPMPs were approved on the understanding that funds would be withheld by the Treasurer pending the submission of verification reports, or signature of agreements • The ExCom urged agencies and governments that had not fulfilled those conditions to do so as soon as possible, so that HCFC phase-out activities could be implemented without further delay • Temporary manufacturing of high GWP-based refrigeration and air conditioning equipment at enterprises that received funding to convert to low-GWP alternatives (decision 77/35) • Relevant agencies were requested to assess during project preparation, the availability of the chosen technology in the country, and not to pay any incremental operating costs until it had been verified that the enterprises concerned were using the approved technology • Governments were encouraged, with the assistance of agencies, to consider taking measures, if possible, to aid the introduction of low-GWP technology in applications covered under the respective sector and/or sub-sector

13. Projects approved at the 77th meeting • Approved in principle • Stage I of the HPMP for South Sudan • Stage II of HPMPs for nine countries (including Malaysia) • Stage I/stage II tranches of HPMPs for 35 countries (including Thailand (3rd tranche)) • Preparation of stage II of HPMPs in three countries • Funding verification reports for HPMPs for nine countries • IS renewals for 34 countries (including Fiji, Viet Nam

14. Incremental costs for the conversion of heat-exchanger manufacturing lines in enterprises converting to HC-290 technology (decision 77/58) The Secretariat and the bilateral and implementing agencies would use the technical information contained in the annex to document 77/69 as a reference when assessing the incremental costs of converting heat-exchanger lines during the conversion of HCFC‑22-based air-conditioners to the use of HC‑290, HFC‑32 and R‑452B refrigerants.

15. Issues arising from the 28th MOP (decision 77/59) • A four-day special meeting would be held early in 2017 to address matters related to the Kigali Amendment arising from decision XXVIII/2, and potential additional contributions to the Multilateral Fund. • The Secretariat was requested to prepare and agenda for the meeting, and a document containing preliminary information in response to decision XXVIII/2 • ExCom members of the 77thmeeting were invited to share information on, but not limited to, the five issues, no later than 31 January 2017 on an exceptional basis owing to the limited time until the end of 2016. US $27 million additional contributions to the Fund • Accepted, with appreciation, the additional contributions to provide fast-start support for implementation of the Kigali Amendment, noting that funding was one-time in nature and would not displace donor contributions • Available for Article 5 countries that had an HFC consumption baseline year between 2020 and 2022; had formally indicated their intent to ratify the Kigali Amendment; and take on early HFC phase-down obligations to support their enabling activities • The Secretariat would develop a document describing procedures for accessing the additional fast-start contributions • The Treasurer would communicate with contributing countries on procedures for making the additional contributions available to the Fund • The Secretariat would report on the additional contributions received separately from the pledged contributions to the Fund.

16. Items considered at the 78th meeting • Status of additional contributions to the Multilateral Fund • Available information on HFC consumption and production including surveys on ODS alternatives • Information relevant to the development of cost guidelines for HFC-phase down • Draft criteria for funding • Enabling activities • Institutional strengthening • Identification of issues relating to HCFC phase-out activities • Key aspects relating to HFC-23 by-product control technologies • Procedures for countries to access additional contributions for enabling activities

17. Status of additional contributions (decision 78/1) The ExCom noted the report by the Treasurer on the status of the additional contributions and noted with appreciation the status of pledged additional contributions distributed among the 16 non-Article 5 Parties to provide fast-start support for implementation of the Kigali Amendment The Treasurer would report on the additional contributions received separately from other pledged contributions to the 79th meeting References: documents 78/3 and Corr.1, and paragraph 14 to 18 of document 78/11)

18. Report on available information on HFC consumption and production in Article 5 countries (decision 78/2) Analysis based on TEAP Task Force reports and preliminary information from surveys on ODS alternative Agencies were urged to work with relevant Article 5 countries to complete and submit, no later than 8 May 2017, as many surveys on ODS alternatives as possible Agencies were requested to return to the 81stmeeting unspent balances for those surveys that had not been submitted to either the 79thor 80thmeetings References: documents 78/4 and Corr.1, and paragraph 19 to 25 of document 78/11)

19. Enabling activities and institutional strengthening (decision 78/4) Enabling activities and Institutional strengthening were considered together Secretariat would prepare a document providing draft guidelines on enabling activities for consideration at the 79th meeting, taking into account the discussions at the 78th meeting ExCom would consider increasing funding for institutional strengthening at a future meeting in accordance with paragraph 20 of decision XXVIII/2 References: documents 78/6 and 78/7 and paragraph 100 to 108 of document 78/11)

20. Identification of issues to be considered in relation to existing HCFC phase-out activities No decision on the matter References: document 78/8 and 78/7 and paragraph 109 to 111 of document 78/11

21. Key aspects related to HFC-23 by-product control technologies (decision 78/5) Urgency of taking action to enable countries to meet the HFC-23 reporting and control obligations by 1 January 2020 Invited all HCFC-22 producing parties to provide on a voluntary basis, information on quantities of HFC-23 in facilities producing HCFC-22; experience in controlling/monitoring HFC-23 by-product emissions, including policies and regulations and the related costs, no later than 15 May 2017 Secretariat would continue to explore whether there were HFC- or other HCFC-producing facilities that generated HFC-23 emissions and to report back to ExCom by 31 May 2018. Consideration of the need for a desk/field study at the 79th meeting References: documents 78/9 and Corr.1, and paragraph 112 to 122 of document 78/11)

22. Sub-group on the Production Sector Article 5 members: Argentina, China, Lebanon, Mexico Non-Article 5 members: Australia, Austria, Germany, United States of America Work would begin at the 79thmeeting, when the facilitator of the group would also be chosen

23. Procedures for accessing additional contributions for enabling activities • Draft procedures for Article 5 countries that have HFC consumption baseline years from 2020 to 2022 in accessing additional contributions for enabling activities (documents 78/10 and Corr.1) • Describes funding modalities for enabling activities • Presents enabling activities that may facilitate fast-start actions for the implementation of the Kigali Amendment • Presents the requirements for submission of funding requests • Proposes other enabling activities related to the production sector and demonstration projects for alternatives to HFCs • The issue would be revisited at the 79thmeeting References: documents 78/10 and Corr.1, and paragraph 125 to 133 of document 78/11)

24. Matters for the 79th and 80th meetings • Agenda items of a “regular” meeting • Status of additional contributions to the Fund • Report on surveys on ODS alternatives (update) • Policy matters related to the Kigali Amendment: follow-up of discussions at the 78th (and 79th) meetings • Pending issues on cost guidelines e.g., eligible incremental costs, energy efficiency, capacity building to address safety, disposal, eligibility of Annex F substances subject to high-ambient-temperature exemptions, enabling activities • HFC-23 by-product control technologies • Procedures for accessing additional contributions for enabling activities • Report to the 29th MOP

25. Guides prepared by the Secretariat • The preparation of stage I of HPMPs • The presentation of tranches of HPMPs (updated as of August 2016) • Project preparation of stage II of HPMP • Presentation of stage II of HPMPs • Presentation of tranches of HPPMP • Preparation of surveys of ODS alternatives • Secretariat's country programme data reporting system • Guide for the submission of institutional strengthening (IS) projects • Part 1: checklist for the submission of a renewal request • Part 2: instructions for filling out the IS reporting format and submission of the report and renewal request • Part 3: advice on objectives, indicators and performance indicators • Part 4: summary of rules and policies for the funding of IS projects • Part 5: sources of information • Annex I: terminal report and request for extension of IS funding

26. Further information on ExCom decisions All decisions can be found in the reports of ExCom meetings www.multilateralfund.org A summary of decisions of each meeting is published following the meeting (www.multilateralfund.org)and distributed through CAP Official letters to each country, sent by the Secretariat on behalf of the ExCom, referring to any decision pertaining to that country

27. Thank you!