1 HCFC Phase –out in Air Conditioning Sector Background, Challenges and Progress Sidi Menad SI AHMED 17 TH October 2012

BACKGROUND #1 Since 2010, no imports of HCFC-based equipment allowed in the US, Europe and many other A2 countries. Many A5 countries will follow Immediate impact on the technology selection of A/C manufacturers Currently available, main mature technology with several years experience is only HFC-410A (others: HFC-407C and HFC-404A) R&D has started some years ago in big manufacturing enterprises, since HCFC-22 phase-out was on the agenda of all A2 countries, however, there is no unified decision on one main alternative technology Low-GWP or lower-GWP (compared to HFC-410A) alternatives currently being introduced on the markets: R290 (propane), HFC-32 and HFO-1234yf

BACKGROUND #2 HFC phase-down has been on the table since some years, and Europe and Australia have already taken effective measures towards their limitation on those countries, thus replacement of HFC-410A will also happen in the medium future. As an example, in Australia a carbon charge will be introduced to the import of synthetic greenhouse gases including HFCs. Starting in , the carbon charge will amount to about 17 per tonne of CO 2 equivalent, rising progressively in subsequent years. ExCom is approving conversion projects to HFC alternatives only if it is essential for reaching MP compliance targets. ExCom has been quite effective in phasing-down HFCs and only a very limited number of projects were approved for HFCs.

CHALLENGES #1 10,670 tonnes of HCFC-22 to be phased-out alone in the RAC sector in China, to reach the Freeze and 10% reduction targets in 2013 and 2015 The selected main alternative R290 (propane) is new in RAC applications and is a flammable technology, however, has ultra-low GWP The risks at the manufacturing sites are manageable and we do not see that as a major issue

CHALLENGES #2 In the implementation of the RAC phase-out strategy we consider the major challenge in the installation, servicing and the market acceptance of the propane-based air conditioners. Implementation of the HPMP service sector plan by UNEP should consider these challenges. Extension of the use of this technology to higher capacity RAC units by reducing the charge but still meeting the energy efficiency standard is still a challenge (work in progress). Implementation of the sector plan in line with the project submission and the commitment on 18 R290 lines.

PROGRESS #1 R&D on R290 technology has started already about 5 years ago and lead enterprises have invested significant amount in the development of this technology for RAC applications Demonstration projects financed by the MLF at Midea RAC manufacturing and Meizhi RAC compressor manufacturing companies. Purchase of equipment finished, installation of the relocated line started in the second quarter in Completion is expected by the end of this year, which will be followed by national acceptance procedures.

PROGRESS #2 Demonstration project at Gree, financed by GIZ; fully implemented and operational To overcome technical challenges and market barriers, a number of technical assistance activities will be implemented. As a first major result of these actions, national safety standard on flammable refrigerants was introduced in China and will become effective in 2013 that will allow placing on the local market R290-based air-conditioners

THANK YOU