1. Erik Pedersen, Independent Consultant HFC Management Workshop, UNEP, Paris, July 11-12, 2014

2. Sector HFC consumption Existing uses of HFCs Mobile Air Conditioners New vehicles with MAC Systems 46 million new cars by A5 countries 33,000 MT to 37,000 MT of HFC-134a Servicing of vehicles with MAC system ~300 million cars in A5 countries 25,000 MT to 30,000 MT of HFC-134a Domestic refrigerators New refrigerators with HFC-134a ~ 40 million new 134a DRs by A5 6,000 MT to 7,000 MT of HFC-134a Servicing existing refrigerators HFC/HC ~300 million DRs in A5 countries 4,500 MT to 5,500 MT of HFC-134a HCFCs to be replaced by non-HFCs or via HFC to non-HFC Alternatives Air conditionersNew ACs and servicing95,000 MT of HCFC-22 Converting to HFC-32, HC- 290 and/or HFO blend Commercial refrigeration CR Units and CR system, (compressor manufacturers ) ~45,000 MTConverting to HFC-32, HC- 600a, HC-290, R744 PU Foam sectorFoam production75,000 MT of HCFC-141b ~ 10%-20% might convert to HFCs => to Non-HFC

3. SectorAlternativesICC CE US$/kg of HFCs ICC CE US$/CO2 equ MAC, Vehicles manufactures HFO-1234yfUS$ 6.35/kg HFC- 134a US$ 4.44/tCO2-e MAC component manufacturer HFO-1234yfNa MAC, ServicingHFO-1234yfUS$ 6.5/kgUS$4.55/tCO2-e Domestic refrigeratorsR-600a,US$10.4/kg HFC- 134a US$ 7.29/tCO2-e DR ServicingHFC-123a/R-600aUS$6.5/kg HFC- 134a US$ 5/tCO2-e ACHFC-32, HFO blends and R290 US$ 5/kg HCFC- 22 ($14/kg for R290) US$ 2.60/tCO2-e ($7.78/kg for R290) CR plug-in units (Refrigeration part) HFC-32, HC-290, HC-600a and HFOs US$ 8.0/kg HCFC- 22 US$ 4.44/tCO2-e CR on site installationsHC-290, R744US$ 4.5/kg HCFC- 22 US$ 3.6/tCO2-e PU FoamHC, HFOs, water/CO2 US$17/kg (HC) US$ 5.5/kg (HFO) US$23.45/tCO2-e (HC) US$ 7.59 (HFO)

4. SectorUse of HFCs and HCFCs ICC CE US$/kg of HFCs ICC Conversion cost MAC, Vehicles manufactures 35,000 MTUS$ 6.35/kg HFCUS$ 222.25 million MAC component manufacturer N.A. No estimates available MAC, Servicing27,500 MTUS$ 6.5/kg HFC/HFO US$ 178.75 million Domestic refrigerators6,500 MTUS$10.4/kg HFCUS$ 67.6 million Dom Ref Servicing5,000 MTUS$ 6.5/kg HFC/HCUS$ 32.5million AC95,000 MTUS$ 5/kg HCFC-22US$ 475 million Com Ref, P-I units35,000 MTUS$ 8/kg HCFC-22US$ 280 million Industry-Com Ref On site10,000 MTUS$ 4.5/kg HCFC-22US$ 45,000 PU Foam15,000 MTUS$ 17/kg HCFC- 141b US$ 255 million

5. A5 Baseline estimated based on latest proposal as around 500 million tons CO2 equivalent

6.  Non-HFC Technologies are avail, but:  High up-front investment cost for e.g. hydrocarbon based technologies,  Are safety requirements a barrier?,  High cost of low carbon chemicals, Very high HFOs prices are quoted, but will the experiences on the history of cost of e.g. HFC-134a be repeated.  What will drive the phase-out of HFC-134a in the MAC sector in A5 countries?  Cost of servicing of existing chemical and new non-HFC flammable alternatives.  R600 and R290  HFC-32 and HFOs  Are Technology transfer a barrier for going non-HFC?  What are the barriers for going directly to Non-HFC technologies for stage II and III of the HPMPs instead of HFCs:  A choice between high cost of IOC for HFOs or high cost of ICC for hydrocarbon based technologies.  MLF funding policies will play a major role,

7. Thank you for listening