HCFC Phase-out Management Plan (HPMP) Stage-I for compliance with the 2013 and 2015 control targets for Annex-C, Group-I substances (HCFCs) in Malaysia

What is this project about?

Malaysia’s HCFC Phase-out Management Plan (HPMP Stage-I), for compliance with the 2013 and 2015 control targets for HCFC consumption according to the Montreal Protocol, comprises of a combination of interventions such as technology transfer investments, policies and regulations, technical assistance, training, awareness, communications and management, coordination and monitoring in various HCFC-consuming sectors, to be implemented during 2012 to 2016, consistent with the provisions of the performance-based agreement between the Executive Committee of the Multilateral Fund and Malaysia.

Upon successful completion, the plan will result in net sustainable reductions of 77.36 ODP tonnes in the national HCFC consumption by 2016, contributing to Malaysia’s compliance with the control targets for consumption of HCFCs. In addition, the project will result in net CO2-equivalent direct emission reductions of about 1.35 million tonnes annually from 2016.

What is the situation?

Malaysia does not produce Hydrocloroflurocarbon (HCFC) but imports them from China, India, Republic of Korea, Singapore and USA. The importation of HCFCs, mainly HCFC-141b, HCFC-22 and HCFC-123 are monitored and regulated by the Department of Environment through various acts and regulations.

HCFCs are sold by the importers to manufacturers or users directly or indirectly through secondary distributors or retailers. HCFCs are also supplied through service establishments and contractors.  Larger manufacturers also import HCFCs directly.

The HCFC consumption in Malaysia increased from 1,261 metric tonnes in 1996 to 3,949 metric tonnes in 2006, indicating an average annual growth rate of over 12%. This steady increase in HCFC consumption was ascribed to sustained economic development during that decade, resulting in increased demand for consumer, commercial and industrial products operating on HCFCs, particularly in the refrigeration and air conditioning sectors.

Based on data collected from the survey compiled, collated and reconciled between data from Department of Customs, Department of Statistics, Ministry of Trade and Industry and data reporting from Ministry of Environment, the consumption of HCFCs in Malaysia during 2005 to 2009 has increased from 5,667 MT (2005) to 7,700 MT (2009).

How are we doing this?

The overarching strategy underlying the HCFC Phase-out Management Plan (HPMP) for Malaysia is based on the following guiding principles:

  • Reflect national context and priorities, national policies and country-drivenness;
  • Develop and demonstrate a strengthened and proactive partnership between government and industry;
  • Draw upon the lessons learnt from functioning of institutional arrangements and operational mechanisms, integrate and build upon existing infrastructures and introduce new mechanisms as needed;
  • Be dynamic and evolving, and to be open for revisions and adaptation as necessary in response to evolving situations

What have we achieved so far?

Policies, Regulations, Project Management and Coordination
Policies and targeted regulations that are enforceable without distorting the markets will be instrumental in controlling the consumption of HCFCs, for meeting the 2013 and 2015 targets. Some of the targeted regulations:

  • Establishment of import restrictions from AP system based on HCFC Baseline (average national consumption for 2009/2010)
  • Amend existing regulations for controlling use, import, manufacturing, assembly and installation of products containing HCFCs, Licensing re-export of HCFCs and enforcement of AP system
  • Prohibition of establishment and expansion of new HCFC-based manufacturing capacities
  • Certification of technicians for handling HCFCs

Awareness and Communications
It is considered extremely important to engage and enlist the support of all stakeholders in the implementation of the HPMP (Stage-I). To accomplish this, targeted awareness and communication actions will need to be carried out, and aligned with the implementation of the HPMP Stage-I. Accordingly resources would need to be allocated to cover the costs of awareness and communications actions.

Polyurethane Foam Sector Plan
The Polyurethane Foams Sector Plan will aim to phase out HCFC consumption in selected foam manufacturing enterprises by 2015. The successful implementation of this plan will contribute 91.7% to the phase-out target, leading to a phase-out of 860 metric tonnes of HCFC-141b.

In addition, the Polyurethane Foams Sector Plan will also provide technical assistance to four Malaysian-owned systems houses, so as to make available at least one low-GWP, safe, non-HCFC formulation per systems house, prior to 2015, which will enable downstream enterprises, mainly SMEs, to phase-out HCFCs cost-effectively.

Technical assistance to the Polyurethane Foams Sector will be provided through workshops, international and national experts and technical information dissemination.

Technical Assistance for the Servicing Sector
Since a large proportion of the unaddressed consumption in 2015 would be in the Servicing Sector, actions would need to be initiated at the outset, to curb the growth of HCFC-based equipment population during the first 3-4 critical years during which phase-out actions are being implemented.

Specific policy and technical assistance interventions will be needed to control the growth in HCFC consumption in servicing until 2015 to acceptable levels.

The key interventions will comprise of the following:

  • Sustainable refrigerant management to promote reclamation and re-use of refrigerants and consequently reduce the demand for virgin refrigerants
  • Training and capacity-building of trainers, technicians and enforcement officials, to ensure that adequate capacity exists to carry out reclamation, retrofitting programmes as well enforcement of current and future regulations related to ODS
  • Pilot retrofitting/replacement demonstration programmes to initiate actions at the end-users of ODS-based equipment, to gradually and eventually reduce demand for ODS as refrigerant in current and future population of refrigeration and air conditioning equipment.
  • Technical assistance workshops and information dissemination for the Air Conditioning and Refrigeration Sectors, both manufacturing and servicing, to provide updated alternative technology information.

Who finances it?

Year Donor Amount (USD)
2012 Multilateral Fund (Montreal Protocol) $2,627,845
2013 Multilateral Fund (Montreal Protocol) $2,372,155
2014 Multilateral Fund (Montreal Protocol) $3,013,111
2015 Multilateral Fund (Montreal Protocol) $  787,179
2016 Multilateral Fund (Montreal Protocol) $  787,180
  TOTAL $9,587,470

Delivery in previous fiscal years

Year Donor Amount (USD)
2012 Multilateral Fund (Montreal Protocol) $480,000
2013 Multilateral Fund (Montreal Protocol) $4,449,967
2014 Multilateral Fund (Montreal Protocol) $1,396000
2015 Multilateral Fund (Montreal Protocol) $776,805

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