Greening of Refrigerator & Room Air-Conditioner Industry in China

Ms. Liu Yuan FECO/MEPMs. Wang Lei CHEAA

11 September 2009, Manila

ContentsWhat happened

What impacted

What done

What contributed

What do in future

--For greening refrigerator and room air conditioner industry in China

CFCs and HCFCs used

Refrigerator and Room air conditioner sector were rapidly developed since 1980’s in China

CFCs and HCFCs have been broadly used as refrigerant and foaming agent in Refrigerator and Room air conditioner products• CFC-11 (foaming agent) and CFC-12 (refrigerant) used in

refrigerator sector in China• HCFC-22 (refrigerant) used in Room air conditioner in China

What happened

Historic production of refrigerators in China (10k

units)Since 1980’s, China refrigerator sector is growing up quickly driven by domestic and international market.

The CFCs peak consumption are about 10,000 tones/year during 1995 – 2002, new consumption is zero since 2008

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

f(x) = 640.562440970268 exp( 0.138254085158497 x )R² = 0.952547148233715

What happened

Historic production of room air – conditioner (10k units)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080

1000

2000

3000

4000

5000

6000

7000

8000

f(x) = 696.171328671329 x − 577.363636363636R² = 0.966699108996855

What happened

ODS and GHGs

A number of commonly used chemicals have been found to be extremely damaging to the ozone layer which including the chemicals used in refrigerator and room air conditioner products.

With scientific confirmation, while CFCs and HCFCs consumed, the man-made chemicals and human activities are having a significant adverse impact on the ozone layer and the global climate.

What im

pacted

All F-gases are GHGs

Some F-gases are ODSs

Climate

change---

impact on

ozone

depleting

The linkage between Climate change and Ozone layer depleting W

hat impacted

Schematic diagram HFCs/HCFCs/CFCs W

hat impacted

ODP of the F-gasesW

hat impacted

GWPs of halocarbons commonly reported under the MP

refrigerators

refrigerators

AC

What im

pacted

GWPs of halocarbons commonly reported under the UNFCCC

AC

AC

What im

pacted

China: Impact on GEP (history)

Climate change: • LOW (China’s CO2 emissions from fossil fuel combustion

were 79 Mt in 1950, contributing only 1.13% of the world total at that time; cumulative emissions of CO2 from fossil fuel combustion accounted for only 9.33% of the world total during the period of 1950~2002, and the cumulative CO2 emissions per capita are 61.7 tons over the same period, ranking the 92nd in the world.)

Ozone layer depleting: • LOW (less than 1% of the total emissions) before 1995;

What im

pacted

a largest and fast developing but not developed

Climate change: large country for total emission (6.1 billion ton CO2e)

Ozone layer depleting: the largest country on production and consumption of HCFCs

China: Impact on GEP (current)W

hat impacted

How to solve the global environmental problems (GEP)

Nowadays, ozone depletion and climate change have been at the forefront of the international community’s environmental agenda• Treaty• Convention• Agreement• Protocol• exchange of notes• declaration

What done

That States have, in accordance with the Charter of the United Nations and the principles of international law, the sovereign right to exploit their own resources pursuant to their own environmental and developmental policies, and the responsibility to ensure that activities within their jurisdiction or control do not cause damage to the environment of other states or of areas beyond the limits of national jurisdiction.

Common but differentiated responsibilities: the respective capabilities of developed and developing countries, as well as the common but differentiated responsibilities of States as set forth in Principle 7 of the Rio Declaration on Environment and Development.

The bases and principles for the cooperation W

hat done

China signed / ratified:

Vienna Convention/Montreal Protocol (1989/1991)

UNFCCC/Kyoto Protocol (1993/2002)

How China working together with the world for solving the GEP (climate change and ozone layer protection)

What done

Vienna Convention/Montreal Protocol (1989/1991)

Country Program for Phaseout of Ozone Depleting Substances (CP) which the government approved in January 1993 and updated in November 1999

Copenhagen Amendment (2004)

Adjustment MP (2007)

Ozone layer protection in ChinaW

hat done

ODS Phaseout approach

Phaseout activities• Project - Sector Plan – Country Plan

Production – consumption – alternatives –policy

Completed the first country program in developing country

Developed the first sector plan for phaseout ODS • (was recommended in the 10 year assessment report for GEF

implementation)

Choosing suitable alternatives

What done

Phaseout Target & Fund (by 2008)

Consumption phaseout target

(ton ODP)

Production phaseout target(ton

ODP)

Total phaseout target(ton

ODP)

IC (million USD, including

supporting cost)

China 111,198 123,328 234,526 782

All Article 5 244,818 176,736 421,555 2,308

Percentage 45% 70% 56% 34%

What done

Compliance with MP, Program implemented by UNIDO in China

Total phaseout 17,300 tons ODP with 115 million USD IC, mainly in refrigerator and foam sector

HC technology used for the refrigerator production

Energy efficiencies were significantly approved

What done

Project Number Project Title Project fund ODS Phaseout MP/CPR/94/405 ELIMINATION OF OZONE DEPLETING SUBSTANCES USED IN THE

PRODUCTION OF COMPRESSORS FOR HOUSEHOLD REFRIGERATORS AT JIAXIPERA COMPRESSOR COMPANY LTD.

40,294

-

MP/CPR/95/039 CONVERSION OF DOMESTIC REFRIGERATOR AND FREEZER FACTORIES TO PHASE OUT CFC-12 AND CFC-11 BY HYDROCARBONS ISOBUTANE AND CYCLO-PENTANE AT HANGZHOU XILING HOLDINGS COMPANY

16,012

-

MP/CPR/95/127 CONVERSION OF DOMESTIC REFRIGERATOR AND FREEZER FACTORIES TO PHASE OUT CFC-12 AND CFC-11 AT HANGZHOU XILING HOLDINGS COMPANY

2,790,320

360

MP/CPR/95/141 WORKSHOP ON DOMESTIC AND COMMERCIAL REFRIGERATOR COMPRESSOR CONVERSION

40,237

-

MP/CPR/96/028 FORMULATION OF INVESTMENT PROJECTS IN THE REFRIGERATION SECTOR WITH PARTICULAR ATTENTION TO DOMESTIC REFRIGERATION AND COMPRESSOR MANUFACTURING

55,000

-

MP/CPR/96/032 CONVERSION OF COMPRESSOR PRODUCTION FOR DOMESTIC REFRIGERATORS FROM CFC-12 TO HYDROCARBON REFRIGERANT AT JIAXIPERA COMPRESSOR FACTORY

1,490,000

96

MP/CPR/96/042 PHASING OUT ODS AT THE HANGZHOU HUARI REFRIGERATOR COMPANY 2,814,027

338

MP/CPR/96/087 PHASING OUT ODS AT THE COMPRESSOR FACTORY OF THE HUANGSHI DONGBEI REFRIGERATION COMPANY

899,030

60

MP/CPR/96/139 PHASING OUT ODS AT THE XI'AN YUAN DONG COMPRESSOR COMPANY 1,593,140

-

MP/CPR/96/184 PHASING OUT ODS AT THE REFRIGERATOR PLANT OF AUCMA ELECTRIC APPLIANCES GROUP COMPANY

2,914,904

708

MP/CPR/96/185 PHASING OUT ODS AT THE HOUSEHOLD REFRIGERATOR COMPRESSOR FACTORY OF THE GUANGZHOU WANBAO COMPRESSOR GROUP

2,250,000

3

MP/CPR/97/078 PHASING OUT ODS AT THE REFRIGERATOR PLANT OF HEFEI MEILING COMPANY LTD.

3,203,283

849

MP/CPR/97/090 PHASING OUT ODS AT THE ZEL TIANJIN COMPRESSOR COMPANY LTD. 962,175

30

MP/CPR/97/091 PHASING OUT ODS AT THE REFRIGERATOR PLANT OF ZEROWATT ELECTRIC APPLIANCES GROUP

2,383,490

423

MP/CPR/97/092 PHASING OUT ODS AT THE HUALING REFRIGERATOR PLANT 672,322

280

MP/CPR/97/183 PHASING OUT ODS AT THE CHANGSHU REFRIGERATING EQUIPMENT WORKS (BAIXUE), CHANGSHU

3,026,819

426

MP/CPR/97/193 PHASING OUT ODS AT THE REFRIGERATOR PLANT OF BOLE ELECTRIC APPLIANCES GROUP

1,467,465

132

MP/CPR/97/194 PHASING OUT ODS AT THE FREEZER PLANT OF XING XING ELECTRIC APPLIANCES INDUSTRIAL COMPANY

3,012,503

348

MP/CPR/97/195 PHASING OUT ODS AT THE REFRIGERATOR PLANT OF ZHEJIANG RONGSHENG ELECTRIC COMPANY LTD., ZHEJIANG, DEQING COUNTY

986,101

178

MP/CPR/97/202 PHASING OUT ODS AT THE YUHUAN COMPRESSOR FACTORY IN KANMEN TOWN IN YUHUAN COUNTY

1,455,969

116

MP/CPR/98/047 PHASING OUT ODS AT THE REFRIGERATOR PLANT OF HEFEI HUALING ELECTRONIC COMPANY, LTD.

777,720

83

MP/CPR/98/108 CONVERSION FROM CFC-12 TO ISOBUTANE TECHNOLOGIES AND PRODUCTS AT THE COMPRESSOR FACTORY OF HANGLI REFRIGERATION LTD., HANGZHOU

680,207

-

What done

Project Number Project Title Project fund ODS Phaseout MP/CPR/98/108 CONVERSION FROM CFC-12 TO I SOBUTANE

TECHNOLOGIES AND PRODUCTS AT THECOMPRESSOR FACTORY OF HANGLI REFRI GERATIONLTD., HANGZHOU

680,207 -

MP/CPR/98/109 REPLACEMENT OF CFC-11 WI TH HCFC-141B FOAMBLOWING AGENT AND CFC-12 WI TH HFC- 134A I NTHE MANUFACTURE OF DOMESTICREFRI GERATORS/FREEZERS AT THE BEI J INGFREEZI NG EQUIPMENT FACTORY

272,647 35

MP/CPR/99/166 REPLACEMENT OF CFC-11 AND CFC-12 WI THCYCLOPENTANE AND I SOBUTANE IN THEPRODUCTION OF REFRI GERATORS AT MOGANSHANELECTRIC APPLI ANCES COMPANY

2,014,728 668

MP/CPR/99/168 REPLACEMENT OF CFC-11 AND CFC-12 WI THCYCLOPENTANE AND I SOBUTANE IN THEPRODUCTION OF REFRI GERATORS AT ZHEJ I ANGELECTRICAL EQUI PMENT COMPANY

2,146,889 199

MP/CPR/00/047 PREPARATION OF INVESTMENT PROJECT IN THEREFRI GERATION COMPRESSOR SECTOR

49,215 -

MP/CPR/00/049 PREPARATION OF INVESTMENT PROJECT IN THETRANSPORTATION REFRIGERATION SECTOR (FOAMCOMPONENT)

40,000 -

MP/CPR/00/051 PREPARATION OF INVESTMENT PROJECT IN THEDOMESTI C REFRI GERATION (HYDROCARBONS)SECTOR

30,000 -

MP/CPR/00/122 REPLACEMENT OF CFC-11 AND CFC-12 WI THCYCLOPENTANE AND HFC-134A I N THE PRODUCTI ONOF REFRI GERATORS AT BANSHEN ELECTRI CAPPLIANCES CO.

2,988,840 563

MP/CPR/00/137 PREPARATION OF 2 I NVESTMENT PROJ ECTS IN THEDOMESTI C (HYDROCARBONS) SECTOR

22,035 -

MP/CPR/00/154 Replacement of CFC-11 With Hcfc-141b inManufacturing of Pu Rigid Spray Foam for I nsulationAt 26 Enterprises

5,338,459 891

MP/CPR/00/157 REPLACEMENT OF CFC-11 AND CFC-12 WI THCYCLOPENTANE AND I SOBUTANE IN THEPRODUCTION OF REFRI GERATORS AT LI TTLE SWANELECTRIC (J INGZHOU) CO. LTD.

2,392,316 212

MP/CPR/01/132 PHASE-OUT OF CFC-12 IN THE MANUFACTURE OFEXTRUDED POLYSTRYR ENE FOAMS TO BUTAN AT 9ENTERPRI SES (UMBRELLA)

2,808,338 750

MP/CPR/01/216 Phase-out of CFC-12 in the Manufacturing of ExtrudedPolystyrene Foams through the Use of Butane as aBlowing Agent at 7 Enterprises (Terminal UmbrellaProject)

2,450,123 359

MP/CPR/02/008 PREPARATION OF DOMESTI C REFRIGERATION ANDCOMPRESSOR MANUFACTURING SECTORAL PHASE-OUT PLAN (ADVANCE)

70,000 -

MP/CPR/02/071 TERMINAL UMBRELLA PROJECT FOR THEELI MI NATI ON OF CFC-12 I N M ANUFACTURI NG OFEPE FOAM PACKAGI NG NETS AT 30 ENTERPRI SES

4,325,709 849

MP/CPR/03/001 SECTOR PLAN CFC FI NAL PHASE- OUT: DOMESTICREFRI GERATION AND DOMESTI C REFRI GERATI ONCOMPRESSORS

5,556,539 318

MP/CPR/03/001Amendment No.1

SECTOR PLAN CFC FI NAL PHASE- OUT: DOMESTICREFRI GERATION AND DOMESTI C REFRI GERATI ONCOMPRESSORS

2,190,335 600

MP/CPR/05/003 Phasing out ODS at the refrigerator plant of BOLEElectric Appliances Group REI NSTATEMENT

113,250 -

MP/CPR/04/130 Refrigeration servicing sector CFC phase-out plan(first tranche)

550,000

MP/CPR/04/130TF/CPR/05/005

Refrigeration Servicing Sector CFC phase-out Plan 2,843,933

MP/CPR/07/002 Refrigeration servicing sector CFC phase-out plan(second tranche)

1,117,550 782

MP/CPR/07/010 Refrigeration servicing sector CFC phase-out plan(third tranche)

690,100 793

MP/CPR/08/011 Refrigeration servicing sector CFC phase-out plan(fourth tranche)

705,550 680

39,396,763 9,347 TOTAL

1,647

What done

CFCs free

The 45.9 million refrigerators converted from CFCs to non-CFCs

• about 40 million refrigerators made with HC technologies and energy efficiency

• Others made with HFCs and other refrigerants

What done

MP provided dual protection: to Ozone layer and to Climate change

Global contributionsW

hat contributed

MP Overall benefits for 2010

NMP87-Baseline Offsets Net value

Ozone depletion HFCs

GWP-weighted emissions (GtCO2-eq/yr) 13.3-16.7 2.7-3.3 0.9 9.7-12.5

Radiative forcing (W/m2) 0.28-0.33 0.06 0.02 0.20-0.25

Kyoto target 2008-2012: ~2 GtCO2-eq/yr

What contributed

ODP and GWP avoided in Chinese refrigerator sector

At least 45,900 tons CFCs for new refrigerator production have been phased out• 45,900 tons ODP has been phaseout per year• 235 million ton CO2e emission has been avoided per

year (account the 40 million refrigerators made with HC theologies only; energy saving has not been included)

What contributed

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080

500100015002000250030003500400045005000

f(x) = 640.562440970268 exp( 0.138254085158497 x )R² = 0.952547148233715

China CFC Free before 2008

Two years ahead than the MP requirement to phaseout CFCs and Halons

What contributed

What are China’s contributions with other developing countries in 2007 during MP parties

meeting?

20092010

20112012

20132014

20152016

20172018

20192020

20212022

20232024

20252026

20272028

20292030

20312032

20332034

20352036

20372038

20392040

0

20

40

60

80

100

120

140

160

180

200

Old MP before 2007 New MP

Baseline 2009-2010Freeze 201310% reduction 201535% 202067.5% 2025servicing 2.5% 2030100% 2040

Environmental benefits:67.8% reduction to current MP800,000 tons ODP21,000,000,000 potential CO2 e

What contributed

What do in future- RAC sector as an example

Currently , UNIDO is helping China to develop HPMP in RAC sector;• Invite experts to introduce suitable

alternatives• Joint data survey• Joint design phaseout strategy

What do in future

Dual environmental benefits of ozone layer protection and climate change

In the future, implementation of adopted HPMP will gain the dual environmental benefits of ozone layer protection and climate change;

China will phase out about 70,000 tons HCFC-22 (3,850 tons ODP) in this sector concomitant with reducing 2,100 tons HFC-23 (25 million ton CO2e) per year;

What do in future

Potential environmental benefitChina is searching

alternatives for HCFCs;

•HC, HFCs and others are the potential substitutes;

Assuming HC as alternative, then,

• By 2030, estimation of environmental benefits of phasing out HCFC-22 for RAC sector will be: avoided 409 mtCO2-eq emission directly and 20568×108 kw-hr energy saving which avoided 1810 mtCO2-eq emission.

What do in future

As one of the largest sector, the RAC sector has high potential to introduce more green products which would contribute to the environment via zero ODP, low

GWP and high energy efficiency.

The joint efforts contribute to green not only the Chinese

industry, but also let Chinese industry provide the world green industrial products for the global

sustainable development.

What do in future

33

Thank you!