Implications of the CDM on other Conventions. The case of HFC-23 destruction

In our analysis we showed that the destruction of HFC-23 in new HCFC 22 facilities under the CDM would likely lead to increased emissions of GHGs as well as ozone depleting substances because production costs of HCFC-22 are expected to be negative when revenues from generated CERs are taken into account. While there is no direct clause on how to handle negative effects on the objectives of other conventions under the Kyoto Protocol or the UNFCCC, there should be great interest in minimising the negative consequences of the CDM for the objective of the Montreal Protocol as well as for climate mitigation, since most Parties are signatories to both treaties.

We identified two options to avoid negative implications for the protection of stratospheric ozone and climate mitigation from new HCFC-22 production plants: the development of a new baseline methodology with a relatively high adjustment of emission reductions or the provisions of financial resources through bilateral or multilateral institutions.