Phase Out of HCFCs and Promotion of HFC-Free Energy Efficient Refrigeration and Air-Conditioning Systems in the Russian Federation through Technology Transfer Final report
August 2018
UNIDO Project No. 105324
GEF Project No. IT3541
Contents
Project Information Sheet ...... 5 1 Executive Summary ...... 6 2 Key Project achievements ...... 8 3 Introduction...... 10 4 Implementation Approach ...... ………………………………………12
4.1 Project Management Structure ...... 12
4.2 Governance ...... 13
4.3 Execution ...... 14 5 Activities and Achievements by Component ...... 16
5.1 Building institutional capacity ...... 16
5.1.1 Creation of national database and tracking process for HCFC phase-out ...... 16
5.1.2 Development of HCFC and HFC consumption patterns and scenario planning ...... 23
5.1.3 Training, awareness and communications for government departments and employees, legislators and institutional stakeholders ...... 23
5.1.4 Up-grading of ODS and HFC import/export legislation. Harmonization of regulations in the Russian Federation with EC F-gases regulations ...... 27
5.1.5 Communication, Marketing and stakeholder Engagement ...... 29
5.1.6 Monitoring and Evaluation ...... 37
5.2 HFC and HCFC Life Cycle Performance Analysis ...... 40
5.2.1 Collect, analyze and compile climate performance benchmark data for the Russian Federation ...... 40
5.2.2 Develop climate impact model for the Russian Federation based on current best practice and incorporating local usage patterns, system configurations and utility costs ...... 40
5.2.3 Develop clear guidelines for the design and selection of refrigeration and foam manufacturing for minimizing life cycle climate impact ...... 41
5.2.4 Draft climate change mitigation policy for refrigeration and polyurethane foam sectors ...... 41
5.3 Phase-out of HCFC consumption in Foam and Refrigeration Sectors ...... 42
5.3.1 Polyurethane foam - pipe insulation (ITZ) ...... 43
5.3.2 Polyurethane foam – panel (Orskie zavody) ...... 44
5.3.3 Polyurethane foam – panel (Sepo) ...... 44
2 5.3.4 Commercial Refrigeration manufacturing (Polus) ...... 45
5.3.5 Domestic and commercial refrigeration (Pozis) ...... 45
5.3.6 Domestic Refrigerators (Sepo) ...... 46
5.3.7 Air-conditioning manufacturing...... 46
5.3.8 Industrial Refrigeration (non TT component)...... 47
5.3.9 Commercial Refrigeration CO2 conversion (non TT component) ...... 48
5.3.10 System House 1 Pentanisation ...... 49
5.3.11 System House 2 methyl formate ...... 50
5.4 Development of ODS destruction facility and supporting recovery network ...... 52
5.4.1 The detailed feasibility and design study, destruction requirements and technology selection ...... 53
5.4.2 Design and installation of destruction facility and foam processing equipment ...... 53
5.4.3 Establish pilot recovery network, including marketing and awareness ...... 54
5.4.4 Commercial sustainability model (market economy mechanism) for ODS destruction ...... 55
5.4.5 Confirmation of impact of Regulatory and Policy measures ...... 55
5.4.6 Training of specialists ...... 55
5.4.7 Analysis of alternative funding mechanisms including CDM ...... 55
5.4.8 Other ...... 55
5.5 Stimulating market growth for energy efficient refrigeration and air conditioning equipment, servicing sector 56
5.5.1 Market study on policy, measures, and approaches to barrier removal ...... 56
5.5.2 Development of training facilities and service practices...... 57
5.5.3 Marketing communications and public awareness (energy efficiency and climate benefit) ...... 58
5.6 Technology Transfer ...... 59
5.6.1 Carbon Dioxide refrigeration systems ...... 59
5.6.2 Methyl Formate Systems House License ...... 60
5.6.3 Hydrocarbon refrigeration and Air-conditioning IP/License/ Equipment ...... 60
5.6.4 Energy performance and quality standards for key technologies ...... 61
3 5.6.5 Energy efficiency technologies including variable speed drives, condenser design and manufacturing equipment ...... 61
5.6.6 Engineering and thermodynamic design for energy efficient refrigeration and air-conditioning equipment (design, license and engineering know-how) ...... 61
5.7 Integrated strategy for HCFC production closure ...... 64
6.0 Project Results Framework………………………………….……………………………………………………………………………..65
7.0 Lessons Learned...... 96
7.1 General ...... 96
7.2 Project implementation under complicated foreign-policy and economic circumstances ...... 98
7.3 Consideration of the nature of the national legislation ...... 98
7.4 Non-government organizations, associations, and business entities and their attitude to activities under implementation ...... 99
7.5 Monitoring of beneficiaries’ viability and their support after completion of the project implementation ...... 99
7.6 Consistency and completeness of the Project implementation…………………………………………………………100
8. Project sustainabilty evidence……………………………………………………………………………………………………………104
9 Conclusionsandrecommendations ...... 105
9.1 Background ...... 105
9.2 Foreign-policy and economic situation in the Russian Federation...... 105
9.3 Status of the ozone and climate legislation of the Russian Federation ...... 105
9.4 Non-government organizations, associations, and business entities and their attitude to the Project activities 106
9.5 Consistency and completeness of the Project implementation ...... 106
4 Project Information Sheet
TT -Pilot (GEF 4): Phase Out HCFCs and Promotion of HFC-free Energy Efficient Title Refrigeration and Air-Conditioning Systems in the Russian Federation Through Technology Transfer Implementing Agency(ies) UNIDO GEF ID 3541 UNIDO Grant Number 200000308 UNIDO SAP ID 105324 GEF Phase GEF-4 General Focal Area MFA Information UNIDO Branch ENV UNIDO Project Manager - Region ECA Country(ies) Russia Trust Fund GEF Project Size FSP CEO Endorsement Date 08/12/2010 Implementation Start 26/01/2011 Milestone Proposed Implementation End 31/12/2014 Dates Revised Implementation End 30/09/2016 Actual Implementation End NA PPG Amount $180,000 Grant Amount $18,000,000 GEF Disbursement as of June 30, 2016 $17,868,720 Funding Confirmed Co-finance at CEO Endorsement $40,000,000 Materialized Co-finance at project Mid-term $12,300,000 Materialized Co-finance at Project Completion NA Overall Development Objective Rating (Previous FY) S Performance Ratings Overall Development Objective Rating (Current FY) S “Development Overall Implementation Progress Rating (Previous FY) S Objectives” Overall Implementation Progress Rating (Current FY) S “Implementati Overall Risk Rating (Previous FY) L on Progress” Overall Risk Rating (Current FY) L "Risk Rating" Remarks on risks NA
5 1 Executive Summary
The Russian Federation is the biggest country in the world and at the time of developing this project was one of the biggest producers of HCFCs. It has established widespread manufacturing in all key HCFC consuming sectors such as refrigeration, air-conditioning, and the manufacture of a wide variety of polyurethane foams.
At the same time, the focus on energy efficiency as a major mitigation against climate change lagged behind many western economies, and according to UNDP, energy intensity in Russia was three times higher than in Western Europe. This is due to a high proportion of outdated equipment and technologies. However, Russia is committed to a 40% reduction in GHG emission by 2020 based on 2007 levels and is seeking to upgrade equipment and practices to improve environmental performances, including equipment with a recognized standard of energy efficiency.
When this project was designed, it was the first time that a multilaterally support programme combined activities to harness the synergies in the two areas of ODS phase out and energy efficiency. The concept was born out of the fact that the biggest HCFC consumers at the time were in the refrigeration sector, and refrigeration is an energy intensive process where considerable efficiencies can be achieved using relatively simple techniques. The refrigeration plant is generally robust and will continue to produce the desired cooling in adverse conditions, but it does so by using up more energy compared to if it would originally have been well designed and maintained. The potential benefits in the Russian Federation were considered to be very large because designers and operators of plants were not aware of the energy consequences due to poor selection decisions, poor operating techniques, or sub-standard maintenance regimes.
The primary objective of the project was to ensure the direct phase out of hydrochlorofluorocarbons (mainly: HCFC-21, HCFC-22, HCFC-141b, and HCFC-142b) in the amount of about 600 tons of ozone depleting potential. The focus was on foam production and refrigeration equipment manufacturing sectors, in order to reach by 2015 the target set by the Montreal Protocol. Considering the fact that HCFCs are also powerful greenhouse gases, such a phase out would also facilitate the decrease of greenhouse gas emissions by 15.6 mln mt of CO 2 equivalent.
The secondary objective of the project was to transfer innovative technologies within the framework of modernization of industrial enterprises using HCFCs in their operations and those producing polyurethane insulation (pre-insulated pipes, sandwich panels), household, medical, commercial, and industrial refrigerating equipment, as well as of enterprises performing repair and servicing of HVAC&R equipment.
6 The implementation of such measures should allow for a further decrease of green-house gas emissions by about 10 mln mt of CO 2 equivalent, during a period of 5 years, on the account of decreased energy consumption.
The project design incorporated key GEF operational principles, including the sustainability of global environmental benefits, institutional continuity, and replicability, keeping in mind that these principles will be monitored rigorously in the annual Project Implementation Review and other review stages. The project consisted of seven sub-components, two of which (3 and 6) respond specifically to the Strategic Programme on Technology Transfer and Climate change:
1. Building institutional capacity (Technical Assistance)
2. HFC and HCFC life cycle performance analysis (STA)
3. Phase out of HCFC consumption in the key consuming sectors of Foam and Refrigeration (INV)
4. Development of ODS destruction facility and supporting recovery network (INV)
5. Conversion of production facilities and stimulating market growth for energy efficient refrigeration and air conditioning equipment (Technical Assistance / Investment)
6. Technology Transfer (Technical Assistance / Investment)
7. Feasibility study to determine the best and most integrated strategy for dealing with HCFC production closure (Technical Assistance)
This Final Report provides a summary of the activities undertaken, the results achieved, and the performance of the project compared to the expectations set when the project was approved in 2010.
7 2 Key Project achievements
The project was approved in 2010 and its active phase was completed by the end of 2015/1q 2016 without major delays.
3000.00
2597.99
2500.00
2000.00
1500.00
1133.6 999.23 1000.00 1028.3 999.23 733.8 842.69
666.93 399.69 500.00 279.01 548.46 510.42 381.13 312.09
0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 MP Schedule, OPD t Actual consumption, ODP t
8 1 Target (Montreal Protocol):
The starting point of the project was the average consumption of the last 3 years before approval (approx. 1000 ODP t). The 2015 Montreal Protocol target for the Russian Federation was 399, 69 ODP t (90% reduction from baseline). This means that during the project’s implementation, over 600 ODP t of HCFC was phased-out.
Thus, according to the data of the Ozone Secretariat on ODS consumption in the Russia Federation, the 2015 reduction (399 ODP t) target was achieved as planned. In fact, the reported consumption in 2015 was 381 ODP t.
2 Target (GHG):
The calculations show that the achievement of the first objective allowed a reduction of GHG emissions in CO2 equivalent in the following amounts:
Activity Amount Unit Phase out Target Investment / Demo Projects 209.42 ODP t CO2 Equivalent 5.5 MMT CO2 Phase out target through replication 390 ODP t CO2 Equivalent 10.17 MMT CO2
The second objective focused on the transfer of innovative technologies during the conversion of industrial enterprises which use HCFC in their operations. This was in addition to those which produce polyurethane insulation (pre-insulated pipes, sandwich panels), household, medical, commercial, and industrial refrigerating equipment, as well as enterprises which repair and service HVAC&R equipment. The implementation of such measures would allow for a further decrease of green-house gas emissions by about 10 mln mt of CO 2 equivalent, within a period of 5 years, due to decreased energy consumption. The calculations show that due to the conversion and improvement of energy efficiency, the following emission reductions were reached:
Activity Amount Unit Indirect GHG reduction in energy efficiency: 10.31 MMT CO2 As a result of project (Year 1) 1.88 MMT CO2 Through replication (Years 2-5) 8.43 MMT CO2
9 3 Introduction
This Final Report provides a summary of the activities undertaken, the results achieved, and the performance of the project compared to the expectations set when the project was approved in 2010. It also reflects on the key successes and the difficulties encountered during the implementation, thereby summarizing the lessons learned. Finally it presents key conclusions derived from the project, as well as achieved outcomes, and finishes by presenting some recommendations for the future. The Final Report covers the period from 2011 till 2018.
Given the complexity, scope and timeframe of the project, a huge volume of written material including technical reports, minutes, presentations, articles, communications, and formal documents have been generated. Key documents are referred to, and where appropriate, excerpts have been included, however for the sake of brevity only some documents are appended. The project management structure and overall approach to towards the implementation of the project, along with a summary of the key project actors and stakeholders, is described briefly in Section 4.
Section 5 of the report includes a narrative summary of the main activities and related achievements for each of the 7 components of the project; this section provides a description of the activities and outputs and the documents and reports generated, various references and substantiations to support the assessment of performance of the programme as a whole. The objective assessment of the performance of the project is given in Section 6, where the main results of the various work streams are presented within the project results framework given in the original project document and Request for CEO
Endorsement/Approval GEFSEC Project ID 3541, Submission Date, 20 October 2010.
Section 7 reflects on the implementation of the project considering the key successes and areas of difficulty and presents the lessons learned by the project team and primary stakeholders. Section 8 covers project sustainability findings and Section 9 draws some conclusions based on the experience of the project team and the lessons learned during project implementation and on the reflections required for this report. It also offers some recommendations for sustainability and future work in these areas.
The 7 principal project components and the agreed level of investment for each component are given below.
10 Investment Summary
GEF Financing, Co -financing, Project Component Type Share, % Share USD USD
1 Building institutional capacity TA 1,495,981.67 48 1,600,000.00 52
HFC and HCFC life cycle 2 STA 250,000.00 71 100,000.00 29 performance analysis
Phase out of HCFC consumption 3 in the key consuming sectors of INV 10,000,000.00 25 30,000,000.00 75 Foam and Refrigeration
Development of ODS destruct ion 4 facility and supporting recovery INV 2,300,000.00 27 6,266,782.52 73 network
Stimulating market growth for TA/ 5 energy efficient refrigeration and 500,000.00 71 200,000.00 29 INV air conditioning equipment
6 Technology Transfer TA/INV 2,700,000.00 30 6,300,000.00 70
Feasibility study to determine the best and most integrated strategy 7 TA 171,728.31 46 200,000.00 54 for dealing with HCFC production closure
Project management 415,992.40 51 400,000.00 49
11 4 Implementation Approach
4.1 Project Management Structure
The overall project management structure was established in the original project document and was based on a national implementation modality with oversight from UNIDO headquarters. Project resources were supplied by UNIDO, local and national consultants and various ministries of the Russian Federation. The primary implementation stakeholders were:
• Ministry of Ecology and Natural Resources of the Russian Federation, • Ministry of Foreign Affairs of the Russian Federation, • UNIDO, • Cleaner Production and Sustainable Development Center.
Diagram 1
Source: project document
12 After the inception meeting, the preliminary approval of various project progress monitoring systems was given, the format of the monitoring system was established, and a formal Statute of the Steering Committee of the Project was prepared, agreed, and endorsed.
4.2 Governance
The Project Steering Committee (PSC) was established with the aim of monitoring the implementation of the project. The Committee included representatives of the Ministry of Natural Resources and Environment, Ministry of Foreign Affairs, UNIDO, UNIDO Centre for International Industrial Cooperation in the Russian Federation and the National Environmental Management and Cleaner Production Center for Oil and Gas Industries.
The Ministry of Natural Resources and Environment of the Russian Federation (MNRE) is a federal executive authority of the Russian Federation that implements public administration in the field of nature management, environmental protection, and ecological safety.
MNRE ensures statutory regulation as well as drafts and submits to the Russian government federal constitutional laws, federal laws, and presidential and governmental acts on the areas including environment protection and security, protection of atmospheric air, improvement of economical mechanism for environmental management and environment protection.
PSC was chaired by the head of the Climate and Atmospheric Air Department of MNRE. The Project Manager was responsible for day to day management of the project activities on behalf of UNIDO.
The Steering Committee officially established the Project Management Group (PMU).
Progress reports on the project implementation were regularly prepared and submitted to UNIDO’s headquarters. During the official visit to the Russian Federation (23–24.10.2013), Li Yong, UNIDO Director General, met with R. Gizatulin, Deputy Minister of MNRE, who noted that “the most active work in Russia is carried out as part of projects on regulation and reduction of ozone-depleting substances emissions, specifically, the project on the HCFCs phase out, which ensures fulfilling Russia’s commitments under the Montreal Protocol and aims at eliminating HCFCs in the foam production and refrigeration engineering sectors by 2015”.
A very effective coordination was achieved in terms of active collaboration and dedication of all project partners for the successful project results.
13 4.3 Execution
The project office was based at the UN Information Centre, Leontievsky per. 9, Moscow. Necessary office equipment and consumables were purchased, and inventory was taken.
As per GEF and UNIDO procedures and rules, tender documentation was prepared and the National Executing Agency was selected in 2015.
The execution agency was the International Centre for the Scientific and Technical Information (ICSTI), a not-for-profit intergovernmental organization set up in 1969 under the provisions of a multilateral, intergovernmental agreement, with headquarters in Moscow. In 1971 ICSTI was registered with the UN Secretariat in accordance with Article 102 of the UN Charter. ICSTI’s mandate is to provide information, analytical, consultative and organizational support to international co-operation in science, technologies and business. In accordance with this objective, ICSTI carries out its activities in three main areas:
• information and analytical services; • innovations and technology transfer; • support to small and medium business.
ICSTI established and developed a sound and long-term network of partnerships with research, academic, business organizations from the public and private sector of its member and partner countries, NGOs, as well as international agencies (UN family, EU, etc.).
ICSTI has the advantage of international, intergovernmental status and long-term experience in managing business projects; it has established contacts and network of partners in the Russian Federation: Government agencies (e.g., Ministry of Foreign Affairs, Ministry of Science & Education, Academy of Sciences), business, and research communities. It also has standing relations with international agencies supporting SMEs, innovations, technology transfer (e.g., UNIDO, etc.). The centre also benefits from partnerships with large innovation/business associations in member and non-member states.
ICSTI has a team of professional and dedicated experts fully committed to the successful implementation of the set tasks and bringing a broad range of expertise, knowledge and understanding.
The UNIDO Execution Agreement was signed with the International Centre of Scientific and Technical Information (ICSTI) in Moscow on 04.03.2015 and the ICSTI’s Temporary Working Group (TWG) was organized by agreement with the UNIDO project and procurement officials.
The TWG prepared and submitted progress and financial reports to UNIDO headquarters on a regular basis.
14 • Inception report, including work, purchases, monitoring and evaluation, 04.03.2015, • 1st progress and financial reports 28.02.2015, • 2nd progress and financial reports 31.05.2015, • 3rd progress and financial reports as 30.09.2015. • Final progress and financial reports 01.04.2016: • Final report for terminal evaluation 01.09.2018
15 5 Activities and Achievements by Component
The following section presents a narrative list of the activities, actions, and reports which took place under each of the main project components. Further details of specific activities can be found in the document " Final Report on implementation of Project No. GF/RUS/11/001 in the Russian Federation" prepared by the International Centre for the Scientific and Technical Information (ICSTI).
5.1 Building institutional capacity
GEF Financing Co-financing Total
Technical USD % US D % US D % assistance 1,495,981.67 48 1,600,000 52 3,095,981.67 100
Expected Outcomes Expected Outputs
• National database and tracking process for • Accelerated HCFC phase-out and reduction HCFC phase-out of HFC consumption • HCFC and HFC consumption patterns and • Understanding of the level of residual scenario plans demand for HCFCs • Improved information and environmental • Good 5.1between and coordination of management systems cross-functional stakeholders • Legislation for the monitoring and control • Improved awareness of environmental of import, export and use of HCFCs and policies and associated HCFC phase out HFCs in the Russian Federation legislation amongst users and stakeholders • Training materials and training sessions for • Improved understanding and performance customs officers, government departments, of customs officers employees, legislators and institutional stakeholders
Detailed description of activities performed to achieve the above expected outcomes and outputs.
5.1.1 Creation of a national database and tracking process for HCFC phase-out
A complex ODS recording system for the Russian Federation was established and exchange of information about ODS use and interaction between public authorities and law enforcement agencies of countries of the Customs Union was arranged. Equipment to prevent ODS smuggling into the Russian Federation was supplied. Interaction with, and training of, FCS and MIA officials was organized. FCS’s and MIA’s
16 representatives were awarded by UNEP for their successful prevention of large ODS trafficking path in the Russian Federation.
In May, 2011, a formal request on the focal areas in institutional capacity strengthening was submitted to MNRE.
In May2011, proposals on the institutional capacity strengthening of the state regulation of ODS and ODS- containing products in the Russian Federation were prepared, based on letters from self-regulating organizations, trade associations, equipment producers, research institutes and higher educational institutions (more than 800 organizations). This was in response to a request from Mr. S. Korotkov, Head of the UNIDO Centre for International Industrial Cooperation in the Russian Federation.
Some proposals provided the basis for instructions to federal executive agencies adopted at the session of the Russian government dedicated to the establishment of the state system for the regulation of the use of ozone-depleting substances and ODS-based products within the territory of the Russian Federation. UNIDO’s experts participated in preparation of this particular session (meeting no. 20, held on June 22, 2011) and in other meetings initiated by MNRE (preparation of UNIDO work plans, session of the environment protection technical committee, TK-409, etc.).
The international workshop on the transfer to ozone-safe substances and technologies in the production of metered dose inhalers in the Russian Federation, had the aim of facilitating the launch of the new UNIDO/GEF project in this area. The workshop was participated by representatives of MNRE, Ministry of Healthcare and Social Development, Federal Service on Surveillance in Healthcare and Social Development of the Russian Federation, Russian federal executive bodies, as well as those of Russian and foreign MDI
17 manufacturers, ministries and pharmaceutical groups of CIS countries, UNIDO international and national experts and consultants (totally 64 people, Moscow, 04–05.10.2011).
The following documents were prepared and submitted to MNRE for delivery to the Secretariat for the Vienna Convention for the Protection of the Ozone Layer and for the Montreal Protocol on Substances that Deplete the Ozone Layer (in Russian and English):
• Draft Russian Federation report on ODS production, consumption, import and export in 20100-14; • Draft Russian Federation request for provision of exceptions for essential uses (CFC-11 and CFC-12 in production of metered dose inhalers) for 2013; • Draft Russian Federation request for provision of exceptions for essential uses (CFC-11 and CFC-12 in production of metered dose inhalers) for 2014; • Draft Russian Federation report on major ODS applications safe for laboratory and analytical use for 2010-2015
The report on HCFC status, distribution, and recirculation was prepared in December 2012.
The following documents, proposals and information and analytical materials were prepared and submitted to MNRE:
• Brief analytical review “Production, import, export and consumption of hydrochlorofluorocarbons (HCFC) in the Russian Federation. Current status and forecast up to 2015”; • Analytical review on the application of the European experience in the disposal of ODS-containing domestic refrigeration equipment in the Russian Federation; • Analytical report “Design and Selection of Equipment for Minimizing Climate Impact” (submitted to MNRE and Ministry of Industry and Trade); • Recommendations to several members of the Public Council under MNRE on the consideration of the draft federal law “On amending certain legislative acts of the Russian Federation” (with regard to measures to enforce the obligations of the Russian Federation under the Montreal Protocol on substances that deplete the ozone layer and the Vienna Convention for the Protection of the ozone layer) at the meeting of the council; • Recommendations for MNRE on the improvement of a table forms for ODS importing entities to complete within the framework of the Customs Union; • UNIDO’s proposals on the organization of ODS recuperation, reclamation, recirculation and destruction in the Russian Federation; • Proposals on supplementing respective technical regulations covering the circulation of ODS; • Analytical report “Phase-out of production of hydrochlorofluorocarbons at enterprises of the chemical sector in the Russian Federation in 2013–2014 and 2015–2020” (delivered to the Ministry of Industry and Trade of the Russian Federation, GK Rostekhnologii, JSC GaloPolymer, JSC Chimprom, JSC GaloPolymer Perm, GaloPolymer Kirovo-Chepetsk LLC); • Brief fact sheet on the consumption of hydrofluorocarbons (HFC) in the Russian Federation and possible accession to the North-American amendment to the Montreal Protocol as regards to the inclusion of obligations on the control over HFC consumption;
18 • Fact sheet “On the need to ban the use of non-refillable containers for the transportation and storage of refrigerants for the purposes of control over the circulation of ozone-depleting substances in the Russian Federation (April 2013); • Analysis of the international practice of banning the use of non-refillable containers; • Fact sheet “Analysis of the production and consumption of hydrofluorocarbons in the Russian Federation” (April 2013) which was submitted to MNRE, and federal executive agencies in order to align the position on the draft amendments to the Montreal protocol offered by Canada, Mexico and USA; • Fact sheet “Results of the cooperation between UNIDO and Federal Custom Service and Ministry of Internal Affairs of the Russian Federation in matters of prevention of illegal import of ozone- depleting substances into the territory of the Russian Federation (April 2013); • Fact sheet “On the need of state incentives for the development of production and dissemination of natural refrigerants in the Russian Federation and introduction of mandatory certification for specialists for theinstallation and provision of service of refrigeration systems” (also submitted to the Central Office of the Government of the Russian Federation, May 2013); • Draft letter of S. Donskoy, Minister of Natural Resources and Environment, to A. Miller, Gazprom CEO, “On the organization of the production of ozone-safe refrigerants based on hydrocarbons” (May 2013); • Report “Practitioner guide on the control and destruction of ODS recovered from recycled refrigerators. Recommendations for the Russian Federation” (submitted to MNRE and Ministry of Industry and Trade, May 2013); • Proposals on the development of statutory instruments under the draft law “On amending Article 8.2 of the Russian Code of Administrative Violations and Federal Law “On Environment Protection” as part of ensuring fulfillment by the Russian Federation of its obligations under the ‘’Montreal Protocol on Substances That Deplete the Ozone Layer to the Vienna Convention for the Protection of the Ozone Layer”; • Corrected proposals on the development of statutory instruments under draft law “On amending Article 8.2 of the Russian Code of Administrative Violations” and Federal Law “On Environment Protection” as part of ensuring fulfillment by the Russian Federation of its obligations under the “Montreal Protocol on Substances That Deplete the Ozone Layer to the Vienna Convention for the Protection of the Ozone Layer”; • Proposals of UNIDO – Business Working Group created as part of the project prepared for public debate of draft regulation of the Government of the Russian Federation “On strengthening state regulation of consumption and use of ozone-depleting substances in the Russian Federation” for improvement (August 2013); • Proposals on the improvement of the interregional draft“Refrigerating equipment. Refrigerants. Use and recovery requirements” by the Euro-Asian Council for Standardization, Metrology and Certification; • Report “Design and Selection of Equipment for Minimizing Climate Impact”; • Proposals on opportunities to finance a project on ODS phase-out in certain CIS countries as part of the Multilateral Fund for the Implementation of the Montreal Protocol for presentation at the meeting of its executive committee; • Minutes of the meeting of UNIDO – Business Working Group on the preparation of recommendations on the creation of an electronic ODS accounting system in the Russian Federation (June 2014);
19 • Corrected proposals on opportunities to finance a regional project in countries in Eastern Europe, the Caucasus and Central Asia (EECCA) on the acceleration of HCFC phase-out and transition to non-HFC alternative substances and technologies as well as the establishment, at the location of the existing Ozone Office of the Republic of Armenia, of a regional centre of excellence and professional development in phase-out of ODS and some F-gases in EECCA as part of the Multilateral foundation of the Montreal Protocol for presentation at a meeting of the executive committee of the foundation (October 2014); • Minutes of the meeting of the disposal, regeneration, recirculation and destruction of ODS and ODS-containing products section of UNIDO – Business Working Group (October 2014); • Business plan for a project on the destruction of ODS, feasibility study of the disposal of domestic refrigerators and freezers, adapted to the Russian conditions; • Search and translation of legal and regulatory documents of the European Union and Republic of Turkey used to regulate ODS and F-gas circulation and accounting; • White paper “On the regulation of the production and consumption of hydrochlorofluorocarbons in the Russian Federation in 2014 and 2015–2019”; • Proposals for the letter of MNRE to Rosprirodnadzor (The Federal Service for Supervision in the Sphere of Nature Management), Ministry of Industry and Trade and FCS on improvement of examination and execution of documents for the import of ODS and alternative refrigerants, foaming agents and solvents; • Proposals for the letter of MNRE to FCS “On the description of particular types of goods in goods declarations”; • Proposals for MNRE on cooperation opportunities with the Republic of Kazakhstan in ODS circulation regulation; • White paper “Foreign legislative and regulatory framework for alternative refrigerants”; • Resolution of workshop “Disposal of ODS and ODS-containing equipment. Changes to legislation”.
PMU members participated in a conference call with representatives from the Navy General Headquarters, MNRE, and Montreal Protocol Secretariat and involved TEAP international experts dedicated to CFC-12 exception for essential uses in the Russian Federation.
They assisted MNRE in the collection of information about the ODS demands of legal entities and sole traders for 2015 and participated in the offsite meeting of MNRE and the Ministry of Industry and Trade of the Russian Federation dedicated to chemical and technical security of the Russian Federation (Perm, 14– 15.04.2015).
PMU members consulted officials of Rosprirodnadzor (the Federal Service for Supervision in the Sphere of Nature Management) on ODS circulation control.
Draft documents and proposals for FCS were prepared and discussed with heads and representatives of FCS. These documents and proposals are related to the organization of customs control over the import and export of ODS and ODS-containing products in the Customs Union, creation of a working group for FCS and UNIDO on strengthening control over ODS import and export and equipment of ODS checkpoints
20 with instrumental control means. The established working group discussed characteristics and contents of terms of reference for services for FCS.
A meeting with representatives from MAI’s Main Office for Combating Economic and Corruption Crimes was organized to discuss UNIDO’s informational support in combating illegal ODS circulation in the Russian Federation.
Cooperation between licensing authorities and customs services of Russia and China was facilitated.
Participation in the inspection of customs checkpoints was taken to ensure their inclusion into the list of checkpoints approved by Resolution of the Government of the Russian Federation No. 687 dated 06.07.2012 “On the determination of border checkpoints of the Russian Federation through which the arrival of ozone-depleting substances on the territory of the Russian Federation is permitted”.
Interaction between UNIDO and MAI and FCS – both as part of created joint working groups and consulting for representatives of MIA and FCS by representatives of UNIDO and business in organization of training and legal issues arising in case of seizure of large volumes of illegally imported ODS – was organized. Representatives of UNIDO – Business Working Group assisted in solving crimes related to illegal ODS import and in the provision of information about the environmentally safe temporary storage of such substances.
Third session of UNIDO – FCS Bilateral Working Group to elaborate an agreed agenda for strengthening control over ODS imports and exports, as well as the equipment of custom checkpoints with instrumental control means (Moscow, 21.01.2013) was held.
Meeting “Prevention of illegal ODS imports into the Russian Federation and reduction of ODS leakage and emissions during maintenance of ODS-containing equipment” was organized. Day-to-day interaction between MIA and business (producers and suppliers of refrigerants) was set; key illegal schemes of ODS import were specified; and cooperation as part of UNIDO – MIA Working Group was agreed (Moscow, 25.01.2013).
Tenders were held for the purchase of analytical equipment for the Forensic Science Center of the Ministry of Interior Affairs, and ODS rapid-response analyzers for operating units and for use as training aids as part of the advanced training course for MIA’s and FCS’s officials.
Forty rapid-response analyzers were purchased and supplied for the training of MIA’s and FCS’s at GBOU SPO PK #19 in the detection of illegal ODS, and representatives of the refrigeration sector, in the re- charging and recovery of large amounts of refrigerants.
21 Consulting advice to the Office for Combating Economic and Corruption Crimes of MIA in the Kaluga region in respect of illegal ODS import was given.
Assistance to the main office for Combating Economic and Corruption Crimes of MIA of Russia in selection of a specialist in detection of illegally imported ODS was provided.
Assistance in the selection of a specialist and the provision of equipment necessary for the respective duties of the main office for Combating Economic and Corruption Crimes was provided. In January 2014, operations staff of the main office for Combating Economic and Corruption Crimes of the Ministry of Internal Affairs of the Russian Federation clamped down on an attempt at the illegal import of ODS.
UNIDO and UNEP organized an award ceremony for officials of the main office for Combating Economic and Corruption Crimes and FCS for their success in the prevention of a large ODS trafficking path in the Russian Federation.
ICSTI received a letter from the Central Operations Customs of the Central Customs Administration of the Federal Customs Service of the Russian Federation with a recommendation on the recognition of the activities of members of the temporary project group for assistance in joint operations on revealing illicit ODS transportation into the territory of the customs union.
Through a screening study of enterprises which consume HCFC in the sandwich panel and pre-insulated pipe sectors, it was possible to draw up long and short lists of enterprises which could be potential candidates for financing and inclusion in the investment component of the UNIDO/GEF Project. These lists were duly submitted to PSC and MNRE.
The screening study of enterprises consuming HCFC in sectors which produce domestic, commercial and medical refrigeration equipment, allowed the drafting of long and short lists of enterprises which could potentially be financed by and included in the investment component of the project submitted to PSC and MNRE.
22 5.1.2 Development of HCFC and HFC consumption patterns and scenario planning
In cooperation with the MNRE, the business community and experts analyzed consumption scenarios and the development of consumption models which led to the issue of the Government regulation No. 228 dated 24.03.2014 (as amended 03.06.2016) “On measures of the state regulation of consumption and circulation of ozone-depleting substances”.
5.1.3 Training, awareness and communications for government departments and employees, legislators and institutional stakeholders
The package of activities included regular meetings between representatives from the MNRE with experts and business circles, studying international experiences and best practices, attending exhibitions, conferences, as well as sharing experiences with foreign colleagues.
On 25.01.2013 PMU members also participated in the MNRE meeting “Prevention of the illegal import of ozone-depleting substances into the Russian Federation and the decrease of their releases and leakages through the maintenance of equipment containing such substances”.
The issues surrounding the international legislation for regulating the protection of the ozone layer and climate were presented at the IV th all-Russian Congress for Environmental Protection (02–04.12.2013).
Following the resolutions of the MNRE meeting “Prevention of the illegal import of ozone-depleting substances into the Russian Federation and the decrease of their releases and leakages through the maintenance of equipment containing such substances” from 25.01.0213, a meeting of UNIDO – Business Working Group was held.
On 16.05.2014 a meeting between MNRE representatives and UNIDO – Business Working Group was organized in Moscow. PMU members initiated and implemented necessary activities to create and duly approve a draft professional standard “Refrigerating, Heat Pump, and Air-conditioning Equipment Technician” and to create and duly approve a draft interregionalstandard “Refrigerating Systems and Heat Pumps. Competence of Personnel”.
On 23-24.07.2015, a workshop “ODS use control in the Russian Federation” was organized for representatives of Rosprirodnadzor and FCS. A unique manual “Tools and methods for detecting ozone depleting substances” was written and printed in 3 thousand copies. It sums up the global experience in combating illegal ODS circulation, gives information about legislation of the Russian Federation and Customs Union regulating this area, key ODS producers and consumers, production and the consumption
23 of ODS in the Russian Federation, common ways of illegal ODS import and methods of handling illegal ODS after detection.
A 3 day training course “Tools and methods for detecting ozone depleting substances” was developed with respective presentations, films, and a training laboratory was equipped for the training of MIA’s and FCS’s officials.
18 representatives of the main office for Combating Economic and Corruption Crimes, Federal Customs Service and Russian Customs Academy and 2 representatives of educational institutions who may be engaged as experts, in case of the detection of large volumes of illegally imported ODS, underwent a practical 72-hour training course “Tools and methods for detecting ozone depleting substances”. (See: http://www.ozoneprogram.ru/meroprijatija/051113/ )
On 16.09.2015, the workshop “Ozone-safe technologies for the foam sector” was held in Moscow.
Consulting advice to members of the Union of Eco-Friendly PU Product Manufacturers and Consumers in issues of conversion of production facilities to ozone- and climate-safe technologies was provided.
A training course and curriculum for process engineers working at enterprises producing PU pre-insulated pipes were developed.
The Microclimate, Energy Efficiency and Building Automation Center was opened on 19.06.2012 in Moscow in the premises of College No. 19, which is the location of budgetary (basic and secondary vocational education) and off-budgetary (advanced vocational training) departments on refrigeration, air- conditioning, ventilation and heating. The PMU developed and presented training programmes. The unique infrastructure was created at 2 facilities (metro Novogireevo and metro Preobrazhenskaya Ploschad).
Master classes on the conversion of air-conditioning systems to natural refrigerants (propane) were organized in the Centre on 03–07.09.2012.
24 A tender for the creation of certification courses for the installation, repair and maintenance of air- conditioning and refrigeration technicians was held, the winning bidder selected and works performed.
In 2013, with the participation of MNRE, leading associations and trade unions, activities on the creation of the professional standard covering issues of ODS accounting, reduction of ODS leakages from operating equipment and environmentally safe ODS disposal were carried out. The work was completed in 2015 by the ICSTI.
Representatives of UNIDO, self-regulating organizations and educational institutions (including visits to demo or production facilities, training as regards natural refrigerants) met with officials of executive agencies from Russia, Tatarstan, Kazakhstan, Kyrgyzstan to familiarize them with ozone-safe technologies.
Draft certification courses for refrigeration system installation, repair and maintenance technicians and courses on natural refrigerants were developed and presented in Moscow on 17–18.06.2014.
A new training facility for working with refrigeration and air-conditioning equipment at the location of Professional, the largest training center (40 000 students per year) in Moscow, was created.
A thematic meeting on the creation of certification systems for refrigeration and air-conditioning equipment in CIS countries was held in Dushanbe on 30.09–02.10.2014.
On 15.10.2014, a meeting of the initiative group of representatives of UNIDO and largest associations and self-regulating organizations in the HVAC&R sector was organized, which was dedicated to the development of the professional standard “Refrigerating, Heat Pump, and Air-conditioning Equipment Technician”.
A free online course “Regulation and Technological Aspects of Cutting ODS Consumption in the Russian Federation” was organized on 01.11–31.12.2014 through which more than 200 specialists were trained.
The training for 30 specialists iworking with distant education systems and specialized software in the refrigeration sector was held in Moscow on 01.11–31.12.2014. In 2014, the package for training stands on air-conditioning and refrigeration equipment was developed. The stands were delivered to and installed at the Tambov Institute of Educators’ Further Training.
In 2015, a training course on “Ecological and Economic Efficiency of CO2 Commercial Refrigeration Equipment” was developed, the physical infrastructure for the training center of Verkont was established, and specialists of the refrigeration sector were trained.
In 2015, training courses in the use of natural refrigerants were developed:
25 • Hydrocarbon refrigerant safe operation methods in the Russian Federation, • CO2 safe operation methods in the Russian Federation, • Ammonia safe operation methods in the Russian Federation.
In 2015, a training course for process engineers working at PU preinsulated pipe manufacturers (2 versions) was developed.
In 2015, a training course “International and Russian legislation in the field of the protection of the ozone layer” was significantly improved due to changes of the statutory and regulatory framework.
In 2015, advanced professional education / professional development programmes “Installation, repair and commissioning of refrigeration, air-conditioning and heat pump equipment based on vapor- compression refrigeration machines” for 4 categories were developed.
A workshop on training in the safe production of PU insulated pipes based on methyl formate was organized on 10.09.2015 in the Moscow region.
A workshop “Organization of Safe Use of Cyclopentane and Its Blends” was organized in Orsk city on 21.10.2015.
A workshop “Organization of Safe Use of Cyclopentane and Its Blends” was organized in Yoshkar-Ola city on 27.10.2015.
The concept of the training center for education in the field of work with environmentally sound energy efficient refrigerants used in refrigerating and air-conditioning equipment, and the recovery of ozone- depleting and fluorinated greenhouse gases from equipment containing them for further recuperation and destruction, was prepared. The Ministry of Education and Science of the Russian Federation may use the concept for replication in Russian regions.
Training stands were developed and manufactured and the training center in Moscow was equipped.
Consulting support to the following enterprises in relation to ODS phase out alternatives and technologies:
• JSC GaloPolymer (Moscow city) in update of the report on ODS production for MNRE • JSC Altayvitaminy (Byisk city) and JSC Moschimfarmpreparaty (Moscow city) in issues of implementation of investment sub-projects on ODS phase-out in production of metered dose inhalers. • JSC Altayvitaminy and JSC Moschimfarmpreparaty in preparation of a draft request of the Russian Federation to the Secretariat of the Montreal Protocol for essential use of CFCs (production of MDI) in 2014.
26 Furthermore, many different activities were conducted to support and improve/raise awareness. Some of them are: a specially dedicated website: www.ozoneprogram.ru ; newsletters regularly sent to more than 20 000 subscribers or to particular groups of addressees; www.foamunion.ru, the website of the Union of Eco-Friendly PU Product Manufacturers and Consumers, was created and maintained; www.hvaccenter.ru, the website for training of refrigerating and air-conditioning technicians including free online-courses, description of the training center, etc. Please see part 6 of the logical framework.
5.1.4 Up-grading of ODS and HFC import/export legislation. Harmonization of regulations in the Russian Federation with EC F-gases regulations
European regulations on F-gases were translated into Russian. The potential for harmonization of the legal framework of the Customs Union and European Union was analyzed. The recommendations were taken into account for an upgrade of the legal framework of the Customs Union and Russian Federation. Respective EU regulations were analyzed, translated into Russian and adopted.
Assistance to MNRE in the preparation of draft legal and regulatory documents (with account of proposals and recommendations of UNIDO – Business Working Group) was provided:
• A resolution of the Government of the Russian Federation No. 687 dated 06.07.2012 “On the determination of border checkpoints of the Russian Federation through which the arrival of ozone-depleting substances on the territory of the Russian Federation is permitted” (number of border checkpoints authorized to work with ODS limited to 8); • Decision of the Chairman of the Government of the Russian Federation 1413-p dated 03.08.2012 on the acceleration of ODS phase-out, preparation of Federal Target Program “National Framework for Chemical and Biological Safety of the Russian Federation (2015–2020)”, incentives for spread of ozone-safe substances and equipment, and establishment of the ODS-containing equipment collection and destruction system; • Resolution of the EurAsEC Customs Union Commission No. 158 “On amending sections 1.1 and 2.1 of the Unified list of goods subject to export and import bans or restrictions by the member states of the Customs Union within the Eurasian economic community in trade with third countries” dated 18.09.2012 (ban on import of HCFC-containing equipment to the territory of the Customs Union (CU)); • Decision of the Government of the Russian Federation 2189-p dated 26.11.2012, on the inclusion of all-Russian competition “Protect the Ozone Layer and Earth Climate” initiated by UNIDO in the plan of main activities related to conducting the Year of the Environmental Protection in the Russian Federation (in charge: MNRE, Ministry of Education, UNIDO Centre for International Industrial Cooperation in the Russian Federation);
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• Resolution of the Eurasian Economic Commission’s Board No. 30 dated 05.03.2013 “On amendments to Section 1.1 of the consolidated list of goods banned or restricted for import and export by the CU members within the framework of the EurAsEC in the trade with third countries” approved by a resolution by the Board of the Eurasian Economic Commission No. 134 dated 16.08.2012 “On legal and regulatory documents covering non-tariff regulation” through this resolution the import of ODS-containing products into the Customs Union territory is banned, • Resolution of the Government of the Russian Federation No. 723-p dated 30.04.2013, “On conducting the all-Russian competition “Protect the Ozone Layer and Earth Climate”; • Federal Law 226-FZ “On amending Federal Law “On Environment Protection” and certain legislative acts of the Russian Federation” dated 23.07.2013 (public debate of the draft organized); • Resolution of the Government of the Russian Federation No. 228 “On measures of state regulation of consumption and circulation of substances that deplete the ozone layer” dated 24.03.2014; • Resolution of the Government of the Russian Federation No. 1229 dated 20.11.2014 “On amendments to regulation of the Government of the Russian Federation No. 228 dated 24.03.2014” (draft reporting forms for production, use, storage, recuperation, reclamation, recirculation, and destruction of ozone-depleting substances were submitted to MNRE); • Resolution of the Government of the Russian Federation No. 2327-p dated 20.11.2014 (Appendix 1 stipulates allowable amount of certain ODS for consumption in the Russian Federation, and Appendix 2, allowable amount of ODS for production in the Russian Federation); • Order of MNRE No. 319 dated 09.07.2014 (registered by the Ministry of Justice of the Russian Federation on 16.10.2014 under No. 34341) stipulating order of annual calculation of allowable amount of ODS for production in the Russian Federation and annual calculation of allowable amount of ODS for consumption in the Russian Federation).
On 30.05.2015 PMU members participated in a meeting to discuss the draft federal law on “Amending Article 8.2 of the Russian Code of Administrative Violations” and federal law “On Environment Protection” as part of ensuring fulfillment by the Russian Federation of its obligations under the “Montreal Protocol on Substances That Deplete the Ozone Layer to the Vienna Convention for the Protection of the Ozone Layer”. Moreover, PMU members further participated in the working meeting with Gazprom representatives on the organization of the production of hydrocarbon refrigerants in the Russian Federation.
On 27.08.2013, PMU members participated in a meeting dedicated to the discussion of a draft resolution of the Government of the Russian Federation “On strengthening state regulation of consumption and use
28 of ozone-depleting substances in the Russian Federation” prepared for the implementation of Federal Law No. 226-FZ “On amending Federal Law ‘On Environment Protection’ and certain legislative acts of the Russian Federation” dated 23.07.2013.
Assistance was provided to MNRE for the organization of a public debate about accounting forms for produced, used, stored, recuperated, reclaimed, recirculate, and destroyed ozone-depleting substances subject to state control.
Proposals were formulated at a UNIDO – Rosstandart Working Group meeting, and were reflected in the text of order of the Government of the Russian Federation No. 1413-p dated 03.08.2012.
Proposals on the improvement of existing technical regulations were prepared and submitted to MNRE (response to MNRE’s letter No. 13-47/16762 dated 15.10.2012).
5.1.5 Communication, Marketing and stakeholder Engagement
Several information web-sites were created ( www.ozoneprogram.ru , http://www.foamunion.ru/ , http://hvaccenter.ru/) and several activities, meetings, conferences and workshops were organized to disseminate information of ODS phase out and energy efficiency themes.
Analytics was prepared and published. Public awareness campaigns were arranged. An annual celebration of the Ozone day was organized and an all-Russian competition, “Protect the ozone layer and Earth’s climate”, was held. Articles were published in several all-Russia mass media and specialized newspapers and magazines: Izvestia, Argumenty i Fakty, Neftegaz.ru, Climate World, UNIDO in Russia, Refrigeration Equipment, Ecology in Production, Chemistry and Business, APIMKH (magazine of the Belorussian association of air-conditioning equipment), JARN etc.
As part of the preparation for the all-Russian competition “Protect the ozone layer and Earth climate” (15.01.2013), PMU members participated in a meeting with S. Levi, Deputy Minister of Natural Resources and Environment.
PMU members provided real-time consulting to representatives of executive agencies and ozone offices of the Republic of Belarus, Republic of Kazakhstan, Republic of Azerbaijan, Republic of Kyrgyzstan, in the phase-out of HCFC and HFC consumption and production and fulfilment of obligations under the Montreal protocol.
On 03.03.2011, the conference “Presentation of the UNIDO/GEF/MNRE Project” was held at the Climate World Exhibition in Moscow.
29 In 2011, a Russian magazine featured UNIDO’s work on “HCFC phase out in the Russian Federation”. The section of the magazine featuring UNIDO is dedicated to articles on the preservation of the ozone layer which are often re-printed and distributed via other mass media channels.
In 2011, working meetings on public awareness were organized with the participation of heads of largest organizations of the HVAC&R and foam sectors.
The terms of reference for a tender on the preparation and publication of UNIDO’s “Preparing for HCFC phase-out: Fundamentals of uses, alternatives, implications and funding for Article 5 countries” in the Russian language were issued.
On 16.09.2011, the first Russian celebration of the International Day for the Preservation of the Ozone Layer was organized. More than 200 participants were represented by officials of MNRE, UNIDO, producers, instructors and students of College No. 19, and media personnel. The event was successful It included: a video report on a cable TV channel, publications on the internet and in refrigerating equipment, UNIDO in Russia, Warm House, Environment and Life, Environmental Manager, Chief Engineer, Water Treatment, Chief Power Engineer, Nature and Individual: XXI century, Russian Ecological Bulletin, Ecology of Urban Lands, Problems of Regional Ecology, and Eco-progress.
UNEP’s “The Antarctic Ozone Hole” was translated into Russian and used for public awareness.
Focal ways of interaction with the Ministry of Education and Science as part of the International Day for the Preservation of the Ozone Layer in 2012 were discussed.
In September 2012, the celebration of the 25th Anniversary of the Montreal Protocol was organized in Moscow and SaintPetersburg.
An authors’ reading dedicated to the 25th Anniversary of the Montreal Protocol and the International Day for the Preservation of the Ozone Layer were organized in Saint Petersburg on 17.09.2012.
An information kit for organizing the celebration of the International Day for the Preservation of the Ozone Layer in Russian educational institutions was prepared.
The first Russian website dedicated to the ozone issue (www.ozoneprogram.ru), was created and maintained. It offers information about Russian ozone legislation, library of documents and videos, a great number of translated documents describing global experience in HCFC phase-out, information about activities of the project and other unique information and news. Several sections are addressed to representatives of federal executive agencies, consumers, industry sectors, educational institutions and mass media.
30 Due to regularly updating the website with new content, www.ozoneprogram.ru featured prominently on searches in google featuring the words “Montreal Protocol”, “Ozone Depleting Substances” (first place on Google). The site traffic is up to 1000 visitors per say with up to 2500 viewed links per day. Representatives of the refrigeration and other sectors use it on a permanent basis.
In 2012, for the purposes of improving efficiency of public awareness activities, a Russian PR agency was selected and contracted. As part of the PR campaign, articles on the preservation of the ozone layer were published in several all-Russia mass media (Izvestia, Argumenty i Fakty) and specialized newspapers and magazines.
Since 2012, newsworthy information was prepared and press-releases, articles and news were sent to major participants of the refrigeration and air-conditioning sectors.
The conference “System for Regulation of Use of Ozone-Depleting Substances in the Russian Federation” was held in Moscow on 14.03.2012.
A meeting on the coordination of customs activities in Saint Petersburg on 11–13.04.2012 was participated in.
Assistance in holding the national championship WorldSkills Russia (Tolyatti, 26.04–01.05.2013) for the promotion of ozone-safe technologies in air-conditioning and refrigeration equipment was provided.
The printing and delivery of “Preparing for HCFC Phase-out: Fundamentals of Uses, Alternatives, Implications and Funding for Article 5 Countries Guide” (242 pages) in Russian was faciiated.
31 Representatives participated in a meeting of the Association of Domestic Refrigeration Equipment (KholodByt) so as to provide information about the project implementation, changes to the Russian legislation covering HCFC, and the prospects of introducing alternative substances and technologies in Russia to the heads of major Russian and foreign manufacturers of domestic refrigeration equipment in the Russian Federation.
Preparation and publication of numerous interviews, articles and expert opinions in such magazines as Neftegaz.ru, Climate World, UNIDO in Russia, Refrigeration Equipment, Ecology in Production, Chemistry and Business, APIMKH (magazine of the Belorussian association of air-conditioning equipment), JARN, and at www.topclimat.ru and www.aircon.ru .
In December 2012, PMU members developed and agreed with MNRE and the Ministry of Education and Science of the Russian Federation the statute of all-Russian competition “Protect the Ozone Layer and Earth Climate” which provided the basis for Order of the Minister of Natural Resources and Environment No. 98 “On All-Russian competition “Protect the Ozone Layer and Earth Climate” dated 22.03.2013.
On 25.01.2013, participation was taken in the meeting of MNRE dedicated to the prevention of ODS trafficking and reduction of their emissions and leakages, as part of which MNRE recommended the creation of a specialized Working Group under the auspices of UNIDO. Two reports were delivered at a scientific and technical conference “25th anniversary of the Montreal Protocol on Substances that Deplete the Ozone Layer in terms of environmental bivalency and predominant reality” of the Institute of Refrigeration and Biotechnology of the Saint Petersburg State University of Information Technologies, Mechanics and Optics on 30.01.2013 in Saint-Petersburg.
A UNIDO – Business Working Group was established and its first meeting took place on 01.03.2013 in Moscow.
Training simulators and tasks were prepared for competing in WorldSkills Russia 2013 which took place on 26.04–01.05.2013 in Moscow. Later, the training simulators were available for the use of the organizers of WorldSkills Russia, and the expert and trainer of the Russian team was recommended for their Refrigeration Equipment and Air-Conditioning competence.
A business trip to Geneva and Zurich was organized for a Russian delegation of representatives from the refrigeration sector and airports. The delegates visited an exhibition dedicated to airport equipment and participated in working meetings with DuPont and Honeywell representatives. The delegation was established in pursuance of an order of the Chairman of the Government of the Russian Federation on chemical security and proliferation of natural refrigerants. During the business trip, the concept of the
32 demo-project on the implementation of natural refrigerants was formulated and discussed, and arrangements on cooperation with enterprises in ODS phase-out were reached.
A brief fact sheet on the project’s role in the dissemination of international standards of professional education in Russia was submitted to D. Livanov, the Minister of Education and Science, in June 2013.
Representatives participated in a working meeting with the Turkmenian Ozone Unit in Ashgabat on 10– 13.06.2013. The meeting was an opportunity for the Russian delegation to share its experience in the project implementation, and exhaustively covered issues related to practical aspects of the transition from ozone-depleting substances to natural refrigerants, creation of centers of excellence for technicians related to air-conditioning and refrigeration sector. Lastly, the meeting participants discussed the organization of all-Russian competition “Protect the Ozone Layer and Earth Climate”.
In March–September, 2013, MNRE, Ministry of Education and Science and UNIDO organized the aforementioned all-Russian competition “Protect the Ozone Layer and Earth Climate”. The competition was held as part of realizing the Russian President’s Decree No. 1157 “On Conducting the Year of the Environmental Protection in the Russian Federation” of 10.08.2012 and Decision of the Government of the Russian Federation No. 2189-p of 26.11.2012. Competition participants included school students, secondary vocational and higher education institutions. The celebration of the International Day for the Preservation of the Ozone Layer initiated in 2011 in Moscow, reached the federal level.
The awarding ceremony for the winners of the all-Russian competition “Protect the Ozone Layer and Earth Climate” took place in MNRE on 16.09.2013.
The conference “Natural Refrigerant Ammonia, Chemical and Technical Security of the Russian Federation” was held on 16.10.2013 in Moscow. It was organized by the UNIDO Centre for International Cooperation in the Russian Federation and GEF with the participation of MNRE. The conference resolution was submitted to MNRE, federal executive agencies concerned and business entities.
The developed concept of the energy efficient demo-project based on natural refrigerants was formally supported by MNRE (letter of S. Levi, deputy Minister of Natural Resources and Environment No. 03-13- 43/22346 dated 13.11.2013). In 2015, ICSTI implemented the concept as part of projects at JSC KPP Nord and Ostrov-Komplekt LLC.
The Turkmenian Ozone Office and PMU developed the joint workshop which was held in Ashgabat on 21– 22.11.2013.
33 An exhibition of the winners of the all-Russian competition “Protect the Ozone Layer and Earth Climate” was showcased at UNIDO headquarters in Vienna in December 2013.
The materials for the IV All-Russian Congress for Environmental Protection were prepared, and PMU members participated in the Congress on 02–04.12.2013.
On 18.04.2014 represenatives participated in the organization of the Moscow try-out of WorldSkills.
A meeting dedicated to regulation of ODS circulation in the Russian Federation was organised between representatives of MNRE and the UNIDO – Business Working Group on 16.05.2014.
Representatives participated in a research-to-practice conference “Enhancement of Reliability and Efficiency of Refrigerating and Petrochemical Equipment” with a speech on “Refrigerants and Issues of Chemical and Technological Security of the Russian Federation” on 26–27.06.2014.
An online art exhibition for children, dedicated to the protection of the ozone layer, was organized on 01.08–31.09.2014. Participation in organization of celebration of the International Day for the Preservation of the Ozone Layer in the Russian Federation was taken on 17.09.2014.
Delegates participated in the 15th meeting-workshop dedicated to the celebration of the Day of Refrigeration Technicians in the Russian Federation, as organized by the Astrakhan State Technical University and Fabrikant company group with the support of Rossoyuzkholodprom.
A speech on “ODS Accounting System in the Russian Federation” was delivered in Astrakhan on 02– 03.10.2014.
Representatives participated in celebration of the 25th Anniversary of the UNIDO Centre for International Cooperation in the Russian Federation on 23.12.2014 in Moscow.
In 2015, support to www.ozoneprogram.ru was provided, and the contents of news, events and other sections of the website were updated. A special section for the publication of tender announcements was created.
As part of Climate World 2015, a major trade exhibition, and conference on “Changes to the Russian Legislation Related to the Ozone Layer, interregional and Professional Standards” was organized in Moscow on 03.03.2015.
A joint workshop of MNRE, UNIDO and ICSTI “Ozone-safe Technologies in the Foam Sector”, which coincided with the International Day for the Preservation of the Ozone Layer, was organized in Moscow on 16.09.2015.
34 Representatives participated in the School Educators’ Forum, and the agenda for the International Day for the Preservation of the Ozone Layer in secondary education institutions was presented on 18.09.2015.
Similarly, presence was also shown at an international workshop on “Scientific and Technical Information, Statistics and Information: National Experience and International Interaction” held as part of Techmart 2015. There, the project was presented to representatives of developing and transition economies (Hanoi, Viet Nam, 02.10.2015).
Furthermore, representatives took part in the annual general meeting of Rossoyuzkholodprom which took place as part of AGROPRODMASH 2015 in Moscow, and the report on changes to the ozone and climate legislation of the Customs Union and Russian Federation on 06.10.2015 was produced.
Participation in the VIIth International specialized exhibition “Energy Saving and Energy Efficiency. Innovative Technologies and Equipment 2015” in Saint Petersburg on 09.10.2015.
Delegates took part in a conference “Moscow, Energy Efficient City” on 30.10.2015.
A number of workshops and presentations took place on 10, 17 and 24 November 2015 in the Moscow region, including a workshop on the manufacture of CO2 refrigerating equipment and a presentation of a working model of a CO2 refrigerating unit for a retail food store.
A workshop on “Demo mini-hotel with a shop and laundry using natural refrigerants” was held on 16, 20 and 25.11.2015 in the Moscow region.
Similarly, a workshop dedicated to use of methyl formate as a foaming agent in PU insulation in the Russian Federation was organized in Vladimir city on 24–25.11.2015.
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Participation in XVth international research-to-practice conference “Warmth of Russia” took place on 09– 10.12.2015 in Kazan, where major representative of the foam sector took part, and a report on “International and Russian Ozone Legislation” was delivered.
Two web-portals for various target groups were developed: www.foamunion.ru for the foam sector and members of the Union of Eco-Friendly PU Product Manufacturers and Consumers, and www.hvaccenter.ru for the refrigeration sector. The second portal offers its visitors online certification courses, courses on natural refrigerants and information about ozone-safe technologies and demo- projects.
A workshop dedicated to the use of cyclopentane as a foaming agent in PU insulation in the Russian Federation was organized in Vladimir on 15-16.12.15.
Two feasibility studies on the use of CO 2 and HC refrigerants in the refrigeration sector were drafted, prepared for printing, and published.
36 A booklet dedicated to the project implementation was developed, prepared for printing and published in Russian and English.
Regular searches, preparation and publication of news and articles on protection of the ozone layer in UNIDO in Russia (No. 16), Climate World (No. 89), Refrigeration Equipment (No. 8, 9, 10 and 11) and leading trade sites (www.aircon.ru, etc.) were performed.
The results of the project implementation were reflected in a mail sent out to representatives of the refrigeration and foam sectors.
5.1.6 Monitoring and Evaluation
A Statute of the Steering Committee of the project was prepared, agreed, and endorsed, thereby creating the project’s Steering Committee (SC). The SC included representatives of MNRE, the Ministry of Foreign Affairs, and the UNIDO Centre for International Industrial Cooperation in the Russian Federation. The Chairman of the Steering Committee was elected to lead the air adverse effect limitation section of the State policy and the regulation of environment adverse effect limitation and monitoring department of MNRE.
The SC sessions took place on the following dates and the minutes of the meetings were prepared:
− 1st: 02.08.2011, − 2nd: 14.03.2012, − 3rd: 19.12.2012, − 4th: 25.03.2013, − 5th: 07–08.04.2014, − 6th: 18–19.12.2014, − 7th: 09–10.04.2015.
In August and December, 2011, PMU members were trained at UNIDO’s headquarters in Vienna, and in January 2012, PMU members started their training in a UN safety and security course. Later, PMU members regularly refreshed their knowledge of UN safety and security courses.
PMU meetings in UNIDO’s headquarters, Vienna, were as follows:
− August 2011, − December 2011, − 12-16 June 2012, − 10-14 December 2012, − 7-21 December 2013.
As part of the activities of the Global Environment Facility (GEF), the project was presented at the Doha UN Conference on Climate Change (Qatar), on 03.12.2012.
37 The project was audited several times by an internal audit.
Progress reports on the project implementation were regularly prepared and submitted to UNIDO’s headquarters.
The project office was located at the UN Information Centre, Leontievsky per. 9, Moscow, necessary office equipment and consumables were purchased, and inventory taken.
As per GEF and UNIDO procedures and rules, tender documentation was prepared and the National Executing Agency was selected in 2015.
The UNIDO Execution Agreement was signed with the International Centre of Scientific and Technical Information in Moscow on 04.03.2015, and ICSTI’s Temporary Working Group (TWG) was organized.
TWG prepared and submitted reports to UNIDO’s headquarters (the final progress and financial reports will be submitted by 01.04.2016):
− inception report, including work, purchases, monitoring and evaluation, 04.03.2015, − 1st progress and financial reports as of 28.02.2015, − 2nd progress and financial reports as of 31.05.2015, − 3rd progress and financial reports as of 30.09.2015.
International cooperation and shared experience:
• Business trip to Belgium and the Netherlands (21–27.08.2011) to study the European experience in f-gas regulation, which included meetings with representatives of the Ministry of Housing, Land Use Planning and Environment of the Netherlands, certifying organizations (certification of companies and technicians), companies engaged in the manufacture and installation of air-conditioners. The trip results were published in UNIDO in Russia, Climate World, Refrigerating Equipment magazines and used in the preparation of a ToR for services on studying the European experience and for legislation harmonization; • Trip to an operating plant for the disposal of domestic refrigerators and freezers to study the European experience (Timelkame, Austria, 14.06.2012); • Participation in the 5th IIR conference “Ammonia refrigeration technologies” (Orchid, Macedonia, 09–11.05.2013); • Participation in the annual meeting of the regional ozone network for ECA (Ohrid, Macedonia, 21–24.05.2013); • Participation in the annual meeting of the regional ozone network for ECA (Saraevo, Bosnia and Herzegowina, 21–24.05.2014); • Organization of a workshop for the sharing of practical experiences with the ozone office of the Republic of Turkmenistan, presentations and master classes (10–13.06.2013); • Organization of a visit of the ozone office of the Republic of Turkmenistan to Moscow (24– 29.10.2013); • Organization of a workshop on the use of natural refrigerants as alternatives to ozone- depleting substances, in cooperation with the ozone office of the Republic of Turkmenistan (21–22.11.2013);
38 • Real-time consulting of representatives of executive agencies and ozone offices of the Republic of Kazakhstan, Azerbaijan, Kyrgyzstan in the phase-out of HCFC and HFC consumption and production and fulfilment of obligations under the Montreal protocol; • Organization of a working visit to the USA to study the experience of using ammonia as a refrigerant, visit Honeywell’s production facilities and AHRexpo 2014 (21–27.01.2014); • Participation in a meeting of the contact group of representatives of the Customs Union (Russian Federation, Republic of Belarus, and Republic of Kazakhstan), countries considering the opportunity of joining the Customs Union (Republic of Armenia, Republic of Kyrgyzstan, and Republic of Tajikistan) and Eurasian Economic Commission dedicated to a discussion of the regulatory of the Customs Union as regards to the circulation of ODS and with account of its possible expansion (Minsk, Republic of Belarus, 18–20.03.2014); • Organization of a meeting with the Ministry of Environment and Urban Development of the Republic of Turkey (MEUD) dedicated to sharing experiences in the operation of the national ODS accounting system (Ankara, Republic of Turkey, 29–30.04.2014); • Participation in a meeting dedicated to the presentation of UNIDO’s projects in Russia and organization of cooperation with the People’s Republic of China (Moscow, 22–26.09.2014). As part of the meeting, the project and proposals on cooperation between Russia and China in the protection of the ozone layer were presented; • Organization of a thematic meeting on the implementation of HCFC phase-out projects (Dushanbe, Tajikistan, 30.09–02.10.2014); • Participation in the annual meeting of the regional ozone network for ECA (Erevan, Republic of Armenia, 26–28.05.2015); • Participation in 24th International Refrigeration Congress with preparation of the white paper for MNRE (Yokohama, Japan, 16–22.08.2015).
Support to Russian delegations that participated in:
• 31st session of the OEWG of parties to the Montreal protocol (Montreal, Canada, 01– 05.08.2011); • 9th Conference of the Parties to the Vienna Convention and 23rd Meeting of the Parties to the Montreal Protocol (Bali, Indonesia, 21–25.11.2011); • 32nd session of OEWG of the parties to the Montreal protocol (Bangkok, Thailand, 22– 30.07.2012) (recommendations on results were prepared and submitted to the head of the Russian delegation); • 24th Meeting of the Parties to the Montreal Protocol (Geneva, Switzerland, 12–16.11.2012); • 25th Meeting of the Parties to the Montreal Protocol (Bangkok, Thailand, 21–25.10.2013); • 34th session of the OEWG of parties to the Montreal protocol (Paris, France, 14–18.07.2014); • 10th Conference of the Parties to the Vienna Convention and 26th Meeting of the Parties to the Montreal Protocol (Paris, France, 17–21.11.2014); • 36th session of the OEWG of parties to the Montreal protocol (Paris, France, 20–24.07.2015); • 27th Meeting of the Parties to the Montreal Protocol (Dubai, U.A.E., 01–05.11.2015). • Consulting support with regards to the preparation of investment sub-projects was provided to enterprises participating in the project.
5.2 HFC and HCFC Life Cycle Performance Analysis
GEF Financing Co-financing Total
39 USD % USD % USD % STA 250,000 71 100,000 29 350,000 100
Expected Outcomes Expected Outputs
• Implementation of a sustainable phase out • Climate impact benchmark data for the strategy for different HCFC consuming Russian Federation subsectors • Clear selection criteria for the selection of • Capacity to adapt to developing phase out alternative technologies which take account scenarios, international climate agreements of climate impact and technology developments • Climate change mitigation policy
A detailed description of activities was performed to achieve the above expected outcomes and outputs.
5.2.1 Collect, analyze and compile climate performance benchmark data for the Russian Federation
To perform the HCFC and HFC life cycle performance analysis, terms of reference were prepared, and a contract with a winning bidder- an international adviser- was signed.
Analysis of the HCFC/HFC life cycle was performed for equipment installed at facilities of various scale— from industrial enterprises to international airport,—and the consolidated data and results of the analysis were integrated into the guidelines prepared by the subcontractor.
5.2.2 Develop climate impact model for the Russian Federation based on current best practice and incorporating local usage patterns, system configurations and utility costs
Following the analysis, a report, “Design and selection of equipment to minimize the climate impact”, was prepared and submitted to MNRE and the Ministry of Industry and Trade. The report reflects the background, introduction, front-end methods, improvement of energy efficiency in systems, superheating and subcooling, arrangement and installation of equipment, equipment service instructions, system commissioning, refrigerant charging, customization of control systems, comparison of climate effect of refrigeration systems, computer model of comparison of climate effect, dependence of energy consumption of refrigeration and air-conditioning equipment from weather conditions, example of TEWI calculation, etc.
5.2.3 Develop clear guidelines for the design and selection of refrigeration and foam manufacturing for minimizing life cycle climate impact
Guidelines for the design and selection of refrigeration and foam manufacturing for minimizing life cycle climate impact are a part of the report mentioned above.
40 In addition, the concept for the creation of energy efficient demo projects in the refrigeration sector using natural refrigerants was developed and formally supported by MNRE. In 2015, the ideas of the concept were implemented as part of demo projects based on natural refrigerants and 2 feasibility studies.
5.2.4 Draft climate change mitigation policy for refrigeration and polyurethane foam sectors
The climate change mitigation policy is being finalized and accepted by the Government. Scenarios and mechanisms of HCFC phase out may be used for HFC phase out and be adapted to developing phase out scenarios, international climate agreements and technology developments. Currently, the Russian government considers various F-gas phase out scenarios. All the project sub-projects did not use both HCFC and HFC energy efficient technologies in refrigeration and air-conditioning and foam sectors of the Russian industry. These technologies demonstrated not only efficiency but high energy efficiency and commercial acceptability for the Russian market. Results of the project implementation may lay in the basis of F-gas focused actions.
41
5.3 Phase-out of HCFC consumption in Foam and Refrigeration Sectors
GEF Financing Co-financing Total
USD % USD % USD % Investments 10,000,00 0 25 30,000,000 75 40,000,000 100
Expected Outcomes Expected Outputs
• HCFC consumption within Montreal • Series of demonstration conversion sub- Protocol phase out obligations projects in key HCFC consuming sectors • Clear understanding of the technical • Technical assistance (technology transfer, capacity to phase out within each sector engineering services, equipment and • Phase out of 600 ODP ODP t HCFC (22, instrumentation, etc.) required for 141b, 142b) conversion of pilot sub-projects • Reduction of direct and indirect GHG • Demonstration sub-projects from different emissions through HCFC phase out and HCFC and HFC consuming sectors and sub- improved energy efficiency of replacement sectors. technology
The implementation of the activities listed below provided significant impact and added value to the use of environmental friendly technologies in targeted sectors in the Russian Federation. A conversion of all the planned enterprises enhanced direct the HCFC phase out, and assisted the country to meet its Montreal Protocol obligations, -crucial part of the primary project objective- and ultimately increase the technical capacity of the beneficiaries (enterprises) with an increase of energy efficiency.
A number of enterprises were keen to assist in the pre-project research and emphasized the importance of this project. Thus, they participated in the preparation of tender documentation, i.e. ToRs and technical specifications for process equipment for the conversion to ozone-safe substances and technologies.
The conversion of the foam equipment was carried out at:
• Izolyatsiony trubny zavod (Pipe-insulation plant), Peresvet city, Moscow region; • KZH Biryusa, Krasnoyarsk; • Polus Company, Yoshkar-Ola; • TPK Orskie zavody , Orsk, Orenburg region; • Tsentrtranstekhmash, Ryazan; • Shumerlya Plant of Purpose-built Vehicles, Shumerlya, Chuvash Republic; • Krasnogorsk Trailer Industrial Complex, Krasnogorsk, Moscow region; • Ariadna-Yug, Leningradskaya, Krasnodar region; • Dow-Izolan, Vladimir; • Vladipur, Vladimir;
42 • SEPO-ZEM, Saratov; • Pozis (Sergo plant), Zelenodolsk, Tatarstan.
The conversion of the manufacture of refrigeration and air-conditioning equipment was carried out at:
• Ostrov-Komplekt, Moscow region; • KPP Nord, Moscow region.
5.3.1 Polyurethane foam - pipe insulation (ITZ)
Mosflowline converted to ozone-safe technology at its own costs and the Center for Advanced Technologies was thereby established at its premises with technical support from the project.
Pipe insulation equipment at the Pipe Insulation Plant (ITZ) was converted from HCFC-141b to methyl formate.
The works performed at the project’s account included: a supply of equipment compatible for working in corrosive medium (methyl formate) and training of the company’s personnel in the operation of new equipment. Data on co-financing can be found in Section 6.
Since the solution is found to be sustainable, a return to HCFC-141b is not profitable.
The training component also included a workshop on the safe production of PU insulated pipes based on methyl formate (10.09.2015, Moscow region).
43 5.3.2 Polyurethane foam – panel (Orskie zavody)
PU panel production equipment at Orskie zavody was converted from HCFC-141b to cyclopentane.
The works performed at the project’s account included: supply of equipment and training of the company’s personnel in the operation of the new equipment. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-141b is not profitable.
The training component also included a workshop dedicated to the safe use of cyclopentane and its blends (Orsk, 21.10.2015).
5.3.3 Polyurethane foam – panel (Sepo)
A conversion at Ariada was performed independently before the project started.
PU panel production equipment at SEPO-ZEM was converted from HCFC-141b to cyclopentane.
The works performed at the project’s expense included: obtaining permits to exempt the supplied equipment from customs duties, supply, installation and commissioning of equipment and training of the company’s personnel in operation of new equipment. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-141b is not profitable.
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5.3.4 Commercial Refrigeration manufacturing (Polus)
Foam production equipment for commercial refrigerating equipment at Polus was converted from HCFC- 141b to cyclopentane.
The works performed at the project’s expense included: supply of equipment and training of the company’s personnel in operation of new equipment. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-141b is not profitable.
5.3.5 Domestic and commercial refrigeration (Pozis)
Foam production equipment for domestic and commercial refrigerating equipment at Pozis was converted from HCFC-141b to cyclopentane.
The works performed at the project’s expense included: obtaining permits to exempt the supplied equipment from customs duties, supply, installation, commissioning of equipment and training of the company’s personnel in operation of new equipment. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-141b is not profitable.
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5.3.6 Domestic Refrigerators (Sepo)
Foam production equipment for domestic refrigerating equipment at SEPO-ZEM was converted from HCFC-141b to cyclopentane.
The works performed at the project’s account included: supply, installation and commissioning of equipment and training of the company’s personnel in operation of new equipment. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-141b is not profitable.
5.3.7 Air-conditioning manufacturing
Air-conditioner production equipment at Ostrov was converted from HCFC-22 to hydrocarbon refrigerants.
46 The works performed at the project’s expense included: supply, installation and commissioning of equipment and training of the company’s personnel in operation of new equipment. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-22 is not profitable.
The training component also included the three-part workshop: “Working models of a standard mini hotel with a shop and laundry based on natural refrigerants” participated by representatives of the refrigeration sector.
For training, a pilot HC-based plant was used which had been developed and implemented as financed by the project.
5.3.8 Industrial Refrigeration (non TT component)
Foam production equipment for industrial refrigerating equipment at Biryusa was converted from HCFC- 141b to cyclopentane.
The works performed at the project’s account included: supply, of equipment and training of the company’s personnel in operation of new equipment. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-141b is not profitable.
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5.3.9 Commercial Refrigeration CO2 conversion (non TT component)
Air-conditioner production equipment at Nord was converted from HCFC-22 to CO2.
The works performed at the project’s account included: supply, installation and commissioning of equipment and training of the company’s personnel in operation of new equipment. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-22 is not profitable.
The training component was realized in the form of the workshop, “Organization of manufacture of CO2 refrigeration equipment. Working model of CO2 refrigeration plant for a retail food store”, participated by representatives of the refrigeration sector.
For training, a pilot CO2-based plant was used which had been developed and implemented as part of the project.
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5.3.10 System House 1 Pentanisation
Production equipment at Dow-Izolan was converted from HCFC-141b to cyclopentane, HFO and methyl formate.
The works performed at the project’s expense included supply and training of the company’s personnel in operation of new equipment. Also, components for PU insulation based on hydrofluoroolefins and methyl formate were tested. Data on co-financing can be found in Section 6.
The solution is sustainable so a return to HCFC-22 is not profitable.
Also, Tsentrtranstekhmash, Shumerlya plant of special purpose automobiles, Krasnogorsk industrial complex for track vans and Ariadna-Yug were supplied equipment compatible with any types of blends (based on methyl formate) and training of the company’s personnel in operation of new equipment. Data on co-financing can be found in Section 6.
49
5.3.11 System House 2 methyl formate
The production equipment at Vladipur (Ekopur) was converted from HCFC-141b to methyl formate.In addition to supplying the company with this equipment, the project team delivered training to the
50 company’s personnel in the operation of the new equipment. Additionally, components for PU insulation based on hydrofluoroolefins and methyl formate were tested. Data on co-financing can be found in Section 6. The training component also included a study tour and workshop for key foam industry stakeholders entitled “Ozone-safe technologies in the foam sector” on using methyl formate in PU insulation, (Moscow, 16.09.2015).
The second workshop, on the use of methyl formate as a foaming agent in the manufacture of PU insulation, was held in Vladimir, 24-25.11.2015.
This solution is sustainable, so returning to HCFC-22 would not be profitable.
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5.4 Development of ODS destruction facility and supporting recovery network
GEF Financing Co-financing Total
USD % USD % USD % Investments 2,300,000 27 6,266,782.52 73 8,566 ,782 .52 100
Expected Outcomes Expected Outputs
• Technical and commercial understanding of • Detailed analysis of destruction the feasibility of operating ODS destruction requirements and selection of the most facilities appropriate technology to provide • Strategy for ODS destruction across the adequate destruction capacity for all Russian Federation recovered ODS • Design and installation of destruction facility and appropriate foam processing equipment
Preparatory activities for the establishment of a destruction system for ODS-containing equipment in Russian regions and changes to regulations and standards on ODS destruction began with meetings and consultations with potential project partners.
The ODS destruction facility was established at LLC UKO, Dedenevo, Moscow region, following an international competitive bidding process.
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5.4.1 The detailed feasibility and design study, destruction requirements and technology selection
Dr. Gyula Körtvélyessy prepared recommendations for the establishment of a disposal network for ODS- containing equipment, which were adapted by national experts after translation into Russian.
PMU members discussed possible approach to ODS destruction in the Russian Federation at the meeting of the disposal, regeneration, recirculation and destruction of ODS and ODS-containing products section of UNIDO – Business working group.
The resulting documents were developed as a guide for the destruction of recovered ODS at OAO GaloPolimer-Perm or their recycling at the plant.
5.4.2 Design and installation of destruction facility and foam processing equipment
After preparation of the tender documentation for the selection of an equipment supplier for the establishment of the ODS destruction infrastructure and ODS collection network, the tender was held. The winning bidder was approved by PSC, and the agreement was signed on 16.02.2015.
53 This activity encompassed the supply, installation, commissioning of equipment and training of the company’s personnel in the operation of the new equipment. Data on co-financing can be found in Section 6.
5.4.3 Establish pilot recovery network, including marketing and awareness
The process of establishing the network began with a working meeting to initiate the preparation of the pilot project on disposal of ODS-containing equipment with the participation of the Project Manager, project experts, representatives from Russian recycling facilities and heads of RATEK (association of trading companies and producers of white goods).
The preparatory activities included a study tour to a similar British ODS destruction plant (24-27.03.2013).
For marketing and public awareness purposes UNIDO’s experts prepared the following publications and white papers on modern ODS-disposal facilities and methods in developed countries:
• ODS: recover and destroy. Disposal of ozone-depleting substances: Europe’s experience and Russia’s prospects. • New approach to recycling of refrigeration equipment and destruction of ozone-depleting substances.
For marketing and public awareness purposes the workshop, “Disposal of ODS and ODS-containing equipment. Changes to legislation”, was held in two parts.
The first part covered legal and technical issues, and the participants included 39 representatives from MNRE, Rossoyuzkholodprom, RATEK, Union of Eco-Friendly PU Product Manufacturers and Consumers, ICSTI, major companies from the refrigerating, air-conditioning, and foam sectors, retailers, and businesses engaged in the collection and disposal of industrial and consumer waste and ODS disposal.
The second part, with 21 participants from the first round, coincided with the official opening of the plant.. The official opening was attended by about 100 visitors and included a press conference at RIA Novosti, the largest Russian information news agency, and Climate World 2016, the largest Russian HVAC&R Exhibition.
Videos on the ODS destruction facility are available on the project’s website: http://www.ozoneprogram.ru/biblioteka/videomateriali/poseshhenie_zavoda/
54 5.4.4 Commercial sustainability model (market economy mechanism) for ODS destruction
The recommendations for the establishment of the disposal network for ODS-containing equipment also included recommendations on commercial sustainability which were improved and adapted by national experts.
5.4.5 Confirmation of impact of Regulatory and Policy measures
To resolve, inter alia, national ODS destruction issues, several laws were adopted:
• Federal law No. 458-FZ “On amending Federal law “On production and consumption waste”, • Federal law No. 226-FZ “On amending Federal Law ‘On Environment Protection’ and certain legislative acts of the Russian Federation”.
These laws oblige producers/importers to either pay significant environmental fees or organize corporate collection and disposal systems with the possible involvement of a specialized disposal company (which is provided for by regulations and is more commercially attractive). The disposal company may also make profit from selling secondary resources obtained from the processing of ODS and ODS-containing equipment.
Government’s decree No. 228 “On measures of state regulation of consumption and circulation of substances that depleted the ozone layer” dated 24.03.2014 provides for creation of ODS banks.
5.4.6 Training of specialists
As specified above, a training course was organized for the company’s personnel on the operation of the new equipment.
Training modules on legal and technological aspects were included in the workshop, “Disposal of ODS and ODS-containing equipment. Changes to legislation”.
5.4.7 Analysis of alternative funding mechanisms including CDM
UNIDO’s experts analyzed and proposed to MNRE alternative funding mechanisms which were established by legal acts described in point 5.4.4.
5.4.8 Other
As part of co-financing UKO launched the web-site.
55 Sustainability of the plant is ensured by:
• legislative changes, including a ban on landfilling waste (goods, products) containing ODS, unless ODS are recovered or reclaimed for further use or environmentally safe destruction; • selection of a beneficiary which previously had refrigeration equipment collection programs for the whole territory of the Russian Federation together with largest chain stores; • establishment of relations between UKO, UNIDO–Business and leading Russian refrigeration and air-conditioning associations to draw up joint programs; • training of representatives of the refrigeration sector and authorities and comprehensive public awareness programs on the need for ODS disposal.
5.5 Stimulating market growth for energy efficient refrigeration and air conditioning equipment, servicing sector
GEF Financing Co-financing Total
Technical USD % USD % USD % Assistance / Investment 500,000 71 200,000 29 700,000 100
Expected Outcomes Expected Outputs
• Increased market share of higher energy • Manufacturers in all sectors converted to efficiency refrigeration and air conditioning new high efficiency designs equipment • Information on policy measures and • Reduction in GHG emissions from methods for removing barriers published refrigeration and air-conditioning systems • Published study and methodologies for of 10 MMT CO2 after 5 years conducting market assessments • Greater consumer and user awareness and • Energy efficiency marketing campaign increased demand for energy efficient (demand drivers) technology. • Improved knowledge of energy efficient design, installation and operating practice across industry
5.5.1 Market study on policy, measures, and approaches to barrier removal
The sectoral market research conducted revealed that, thanks to the project, the share of Russian producers of domestic, commercial and industrial equipment on the domestic market reached 23.85%.
Barrier removal is ensured through the:
• adoption of Federal law No. 261-FZ dated 23.11.2009 “On energy saving and energy efficiency and on amendments to certain legislative acts of the Russian Federation” that supports the dissemination of energy efficient systems in the RAC sector;
56 • establishment of two demo projects (HC and CO2 based);
• development of a professional standard on ODS record keeping, leakage reduction and environmentally safe disposal;
• establishment of a unique training certification center to transfer technologies for the whole territory of the Russian Federation;
• activities to support the development of a Russian legislation and regulatory framework to promote natural refrigerants and foaming agents and equipment with high EE values.
5.5.2 Development of training facilities and service practices
In cooperation with MNRE, leading associations and trade unions, the professional standard on ODS record keeping, leakage reduction and environmentally safe disposal was completed by 2015.
Activities were undertaken to develop and approve a draft interstate standard on “Refrigerating Systems and Heat Pumps. Competence of Personnel”.
A Workshop on the “Establishment of the certification and accreditation system for technicians engaged in installation, maintenance and repair of refrigerating, air-conditioning equipment and heat pumps” was held. This workshop encompassed4 levels of professional development programs on the maintenance and servicing of refrigerating installations, as well as management, training and knowledge assessment of staff.
Training and technology transfer centers were established and equipped (Vercont and Centre of Excellence), and cooperation with WorldSkills started.
57
Training and certification courses, based on UNIDO certification courses specifically dedicated to refrigeration system installation, repair and maintenance technicians and use of natural refrigerants, were developed and adapted to incorporate the professional standards. These courses are available at www.hvaccenter.ru .
Two pilot plants (based on HC and CO2) at Nord and Ostrov also participated in training activities.
5.5.3 Marketing communications and public awareness (energy efficiency and climate benefit) Marketing communications and public awareness activities included:
• PR campaigns: o regular publications in newspapers, magazines and on web-sites (Izvestia, Argumenty i Fakty, Neftegaz.ru, Climate World, UNIDO in Russia, Refrigeration Equipment, Ecology in Production, Chemistry and Business, APIMKH (magazine of the Belorussian association of air-conditioning equipment), JARN, www.topclimat.ru , www.aircon.ru ); o press-releases, articles and news sent to major stakeholders of the refrigeration and air- conditioning sectors; o assistance in organizing the national championship WorldSkills Russia (Tolyatti, 26.04– 01.05.2013) for the promotion of ozone-safe technologies in air-conditioning and refrigeration equipment (manufacture of training simulators and development of tasks); o organization of all-Russian competition “Protect the Ozone Layer and Earth Climate” supported by the Russian Ministry of Natural Resources; o reports for the conference dedicated to the 25th anniversary of the Montreal Protocol on Substances that Deplete the Ozone Layer in terms of environmental bivalency and predominant reality; • web-sites: o www.ozoneprogram.ru : dedicated to the project on the whole, its components in detail, related activities; o www.hvaccenter.ru : dedicated to the promotion of EE ozone-safe refrigeration technologies in Russia and covering related events ; o www.foamunion.ru : dedicated to the promotion of EE ozone-safe foam technologies in Russia and covering related events; • study tours for business and government representatives: o to a British ODS destruction plant, o to Russian systems house; o to Geneva and Zurich to visit the exhibition dedicated to airport equipment and participate in working meetings with DuPont and Honeywell representatives.
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5.6 Technology Transfer
GEF Financing Co-financing Total
Technical USD % USD % USD % Assistance / Investment 2,700,000 30 6,300,000 70 9,000,000 100
Expected Outcomes Expected Outputs
• Technology transfer of non-HFC alternatives • Centre of excellence for training of to HCFC applications specialists and provision of design, licenses • Higher EE RAC systems in use across the and engineering know-how Russian Federation • Conversion of HCFC based refrigeration and • Increased private sector energy efficient foam systems design capacity • Energy performance and quality standards • Increased use of high efficiency for key technologies manufacturing equipment • Energy efficiency technologies including variable speed drives, condenser design and manufacturing equipment
The implementation of these activities, which included technology transfer and increase of energy efficiency, contributed vastly to the primary objective of the project.
5.6.1 Carbon Dioxide refrigeration systems
Technology transfer at KPP Nord enabled the production of more energy efficient CO2 refrigeration systems. According to the calculations provided in the feasibility study, this could contribute to an improvement of energy efficiency by up to 30% (depending on the climate zone).
The activities under this output included a workshop on the “Organization of manufacture of CO2 refrigeration equipment. Working model of CO2 refrigeration plant for a retail food store”, which targeted representatives from the refrigeration sector.
A pilot CO2 plant developed under the project demonstrates the advantages of using CO2 in refrigeration systems and represents an opportunity to improve energy efficiency by up to 30%.
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5.6.2 Methyl Formate Systems House License
As part of the conversion, two Russian systems houses, Vladipur and Dow-Izolan, received a foaming technology based on methyl formate, a foaming agent. In this regard, a new approach to their production process was successfully developed and applied, including testing of new component A and manufacture of pilot batches.
This activity included a study tour and workshops on the use of methyl formate in PU insulation for key foam industry stakeholders at Vladipur, and a joint workshop on “Ozone-safe technologies in the foam sector”, which was held in Moscow on 16.09.2015 by MNRE, UNIDO and ICSTI. The other workshop, on the use of methyl formate as a foaming agent in the manufacture of PU insulation, was held in Vladimir on 24-25.11.2015.
5.6.3 Hydrocarbon refrigeration and Air-conditioning IP/License/ Equipment
Technology transfer at Ostrov included establishing and equipping a research laboratory with a working model of HC refrigeration plant with heat recovery function for mini hotels with shops and laundry, and launching the manufacture of small-charge HC machines.
This activity encompassed a three-part workshop on “Working models of a standard mini hotel with a shop and laundry based on natural refrigerants”, which targeted representatives from the refrigeration sector.
The pilot programme at the HC-based plant demonstrated the advantages of using hydrocarbons in refrigeration, with an increase in energy efficiency of 15-30% and additional savings from heat recovery of up to 25% of electrical energy. The calculations were provided in the feasibility study.
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5.6.4 Energy performance and quality standards for key technologies
The Technology transfer component enabled the manufacture of refrigeration and air-conditioning equipment complying with up-to-date energy performance (A and higher) and quality standards, thus, giving the project beneficiaries the opportunity to export their products.
5.6.5 Energy efficiency technologies including variable speed drives, condenser design and manufacturing equipment
The transfer of energy efficient technologies to Biryusa, SEPO-ZEM, etc. enabled, inter alia, the upgrading of manufacturing equipment, thus ensuring further improvement of energy efficiency. For example, high EE values at Biryusa were reached by modifying manufacturing equipment, which allowed the company to reduce painting temperatures, so as to ensure energy saving during non-stop operation.
The launch of new production equipment at SEPO-ZEM increased overall output, while minimizing energy costs per item produced.
Furthermore, the energy efficiency of the enterprise improved. According to the official report, energy efficiency reached 25%, as compared to the planned 15%.
5.6.6 Engineering and thermodynamic design for energy efficient refrigeration and air-conditioning equipment (design, license and engineering know-how)
Technology transfer at Nord led to the development, installation and testing of the pilot CO2 plant, which in turn to demonstrated the advantages of using CO2 in refrigeration. Energy efficiency of such equipment, including heat recuperation facilities, reaches 30% (depending on the climate zone). The calculations and engineering details were provided in the feasibility study.
61 Technology transfer at Ostrov led to the development, installation and testing of the pilot HC-based plant to demonstrate the advantages of using hydrocarbons in refrigeration. The energy efficiency of such equipment can reach 15-30% and heat recovery can save an extra 25% of electrical energy. The calculations were provided in the feasibility study.
Regular training courses were held at two training centers established and equipped as part of the Project: Vercont and Centre of Excellence (aka the Microclimate, Energy Efficiency and Building Automation Centre). The project support included the development and manufacture of training simulators, supply of consumables, development and printing of manuals under specially developed training programmes.
The Centre of Excellence established in Moscow is partly sponsored by Samsung and supported by the Russian Energy Agency, Ministry of Energy of the Russian Federation and the Environmental Certification Centre for Green Standards.
Thanks to Rossoyuzkholodprom’s support, the Vercont center established relations with governors and heads of governments of Russian regions to disseminate lessons learned within the framework of the project at the local level. It was also commended for training Somalia technicians under one of the UNIDO projects and demonstration of new technologies for delegates from Kyrgyzstan, Moldova, Armenia, Kazakhstan, Turkmenistan, Azerbaijan, Belarus, Tajikistan, Ukraine.
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5.7 Integrated strategy for HCFC production closure
GEF Financing Co-financing Total
Technical USD % USD % USD % Assistance 171, 728.31 46 200,000 54 371,728.31 100
Expected Outcomes Expected Outputs
• Stakeholder to agree production closure • HCFC production closure strategy strategy • Reduction of 1840 metric tonnes of HCFCs closed
Report “Phase out of hydrochlorofluorocarbons production at chemical enterprises of the Russian Federation in 2013-2014 and 2015-2020” was developed and submitted to MNRE, Ministry of Industry and Trade, GK Russian Technologies, OAO GaloPolimer, VOAO Khimprom, OAO GaloPolimer Perm and OOO GaloPolimer Kirovo-Chepetsk. Cooperation agreements in principal with Russian HCFC producers were reached. The Russian Government was submitted proposals for organization of production of ozone- safe HC and synthetic refrigerants with low GWP.Government decree No. 228 dated 24.03.2014, inter alia, banned design (since 1.07.2014) and construction (since 1.01.2015) of any facilities used for economic or other activity where ODS or ODS-containing equipment are produced and established the limit on the consumption volume for 2015-2019 to be equal to 399.69 ODP tonnes.
The closure of HCFC production at VOAO Khimprom reduced production by 1,840 metric tons.
No GEF funding is available for future projects due to political reasons.
64 6 Project Results Framework
The follow section of this report provides a summary of the final results achieved by the project, as compared to the project results framework presented in the
Request for CEO Endorsement/Approval GEFSEC Project ID3541, Submission Date, 20 October 2010.
Project Expected Outcomes Expected Outputs Results Components
1. Building • Accelerated • National institutional HCFC phase database and According to the Ozone Secretariat data based on MNRE’s country report, RF’s capacity out and tracking target levels for 2015 were achieved. The institutional component ensured the reduction of process GEF Financing HFC • HCFC and major part of this result. 1,495,981.67 consumption HFC 48% • Understandin consumption During the implementation of the project, the Russian statutory and regulatory g of the level patterns and Co-financing of residual scenario framework covering ODS, was adapted as follows:: 1,600,000 demand for plans 52% HCFCs • Agreed • ODS use subject to state regulation was determined on the whole, • Good stakeholder registered, and permissible production and consumption levels were set; Total communicati needs • the state monitoring of production, import, export, and use of ODS was 3095981,67 on between framework introduced; and • Improved Technical coordination information • design and construction of business and other facilities engaged in Assistance of cross- and production of ODS and ODS-containing items were banned; functional environment • use of non-refillable cylinders was banned (excluding less than 3 Lcylinders stakeholders al for ODS for laboratory and analytical use); • Improved management • accounting of produced, used, transported, stored, recuperated, reclaimed, awareness of systems recirculated, and disposed ODS was introduced for legal entities and private environment • Legislation al policies for the entrepreneurs;
65 and monitoring • landfilling of waste (goods, products) containing ODS was directly banned, associated and control with the exception of ODS recovered or reclaimed for further use or HCFC phase of import, environmentally safe destruction; out export and • criminal liability for illegal ODS import (smuggling) into the Russian territory legislation use of HCFCs amongst and HFCs in was introduced; users and the Russian • number of customs posts for ODS import into the Russian territory was stakeholders Federation limited; • Improved • Training • administrative responsibility for non-compliance with ODS circulation understandin materials and requirements was imposed; g and training • state monitoring of compliance with ODS circulation requirements was performance sessions for of customs customs included in the state environmental surveillance covered; officers officers • the procedure of annual calculation of allowable amount of ODS for production in the Russian Federation and annual calculation of allowable amount of ODS for consumption in the Russian Federation; • the list and procedure for the application of technical customs control means (classified as goods identification facilities) at Russian customs bodies.
Key normative legal documents:
• Federal Law 226-FZ “On amending Federal Law “On Environment Protection” and certain legislative acts of the Russian Federation” dated 23.07.2013; • regulation of the Government of the Russian Federation No. 687 “On determination of border checkpoints of the Russian Federation through which the arrival of ozone-depleting substances on the territory of the Russian Federation is permitted" dated 06.07.2012; • decree of the Government of the Russian Federation No. 228 “On measures
66 of state regulation of consumption and c irculation of substances that deplete the ozone layer” dated 24.03.2014; • decree of the Government of the Russian Federation No. 923 “On approval of the list of strategic goods and resources for the purposes of article 226.1 of the Criminal Code of the Russian Federation” (inclusion of ODS into the list) dated 13.09.2012; • decree of the Government of the Russian Federation No. 228 “On measures of state regulation of consumption and circulation of substances that deplete the ozone layer” dated 24.03.2014; • decree of the Government of the Russian Federation No. 1229 ““On amendments to regulation of the Government of the Russian Federation No. 228 dated 24.03.2014” dated 20.11.2014; • annual (starting from 2014) orders of the Government of the Russian Federation on the permissible amount of ODS for production in the Russian Federation and annual calculation of allowable amount of ODS for consumption in the Russian Federation; • RF’s Government, MNRE and FCS orders; • Federal target program “National Framework for Chemical and Biological Safety of the Russian Federation (2015–2020)” providing for activities on ODS phase out, respective amendments to technical regulations of the Customs Union, development of national standards, including development and mastering of production of ozone-safe refrigeration equipment, inter alia, of small ammonia charge, and other measures.
During the project implementation, the statutory and regulatory environment of ODS circulation in the territory of members of the Customs Union (Russian Federation, Republic of Kyrgyzstan, Republic of Belarus, Republic of Kazakhstan,
67 Republic of Armenia) was changed as follows:
• ban on import of all ODS (excluding HCFC) and ODS-containing products was introduced; • procedure of import of ODS and ODS-containing products into/from the customs territory of the Customs Union; • sharing of information about issued permits for ODS transfer, reporting of entities engaged in import/export of ODS to/from countries of the Customs Union, and entities producing such substances between approved bodies of members of the Customs Union and Single Economic Space in the course of mutual trade.
Key normative legal documents:
• resolution of the Eurasian Economic Commission’s Board No. 134 “On legal and regulatory documents covering non-tariff regulation” dated 16.08.2012, as amended 06.10.2015; • resolution of the Eurasian Economic Commission’s Board No. 158 dated 18.09.2012 “On amendments to sections 1.1 and 2.1 of the Consolidated list of goods banned or restricted for import and export by the CU members within the framework of the EurAsEC in the trade with third countries”; • “Agreement on transfer of ozone-depleting substances and products containing them and accounting of ozone-depleting substances during mutual trade of members of the Eurasian Economic Union” dated 29.05.2015.
During the Project implementation, the statutory and regulatory environment of HFC consumption reduction changed as follows:
68 • Russian President's Decree No. 752 "On reduction of greenhouse gas emissions" dated 30.09.2013 was signed; • order of the Government of the Russian Federation No. 504-p dated 02.04.2014 stipulating the plan of actions to greenhouse gas emissions by 2020 down to 75% against the baseline of 1990 was signed; • order of the Government of the Russian Federation No. 716-p dated 22.04.2015 authorizing a concept for the creation of the GHG emission monitoring, accounting and verification in the Russian Federation was signed; • order of MNRE No. 300 dated 30.06.2015 “On the approval of guidelines and instructions on the quantitative evaluation of GHG emissions by business units and other organizations in the Russian Federation” (registered with the Ministry of Justice No. 40098 dated 15.12.2015).
During the project implementation, the professional standard “Refrigerating, heat pump, and air-conditioning equipment technician” and i standard “Refrigerating Systems and Heat Pumps. Competence of Personnel” were developed and underwent all necessary procedures.
During the project implementation, the following was prepared and submitted to MNRE:
• draft Russian Federation reports on ODS production, consumption, import and export in 2010–2014; • draft Russian Federation requests for the provision of exceptions for essential uses (CFC-11 and CFC-12 in production of metered dose inhalers) for 2013 and 2014;
69 • draft Russian Federation reports on major ODS applications safe for laboratory and analytical use for 2010–2014; • more than 30 white papers including research reports, memorandums, recommendations and proposals of UNIDO–Business working group.
The project team provided consultancy support to Russian delegations that participated in meetings of the open-ended working group of the parties to the Montreal protocol on substances that deplete the ozone layer and meetings of the parties to the Montreal protocol.
In preparing the abovementioned draft regulatory legal acts, the proposals of the UNIDO-Business working group and PMU were taken into account.
The implementation strategy developed by the Russian Government with assistance of the project team was to avoid the adoption of HFCs by encouraging and facilitating the adoption of low GWP solutions, emphasizing natural refrigerants such as ammonia and hydrocarbons used in appropriate applications supplemented by the use of HFOs which are currently in the developmental phase.
Amendments to technical regulations of the Customs Union, which will form the basis of the establishment of a standard package in Russia, Kazakhstan and Belarus, were prepared and adopted.
State ODS record keeping is based on ODS export/import data provided by the Federal Customs Service and on reporting of legal entities and sole traders that
70 produce, use, transport, store, recover, reclaim and recirculate ODS on the territory of the Russian Federation submitted in compliance with an order of the Government of the Russian Federation No. 228 dated 24.03.2014. The reporting forms were developed in cooperation with UNIDO–Business working group and corrected by the group at their introduction.
MNRE was submitted e-record procedures developed on the bae of experience of EC countries and the Republic of Turkey. To this end, an ODS accounting software was additionally developed with UNIDO’s support. This data collection system may further be used to analyze HFC consumption.
In order to determine the level of residual demand for HCFCs, in June 2014 a draft MNRE order established a procedure to calculate the annual ODS production volume necessary to ensure operation of RAC equipment, foam production, degreasing and cleaning operations, and other processes was prepared with UNIDO’s support. A respective questionnaire was placed at MNRE’s website, http://www.ozoneprogram.ru/novosti/urlicam_ip_minprirodi/, and sent to more than 30,000 companies. Based on obtained data, MNRE allocated ODS 2015 quotas between market players in the second part of 2014.
UNIDO-Business working group, important intermediary between the state and business, participated in:
• creation and discussion of the state ODS control system;
71 • initialization of the elaboration of technicians’ certification system, and professional and educational standards; • support to power structures in the prevention of illegal ODS import; • creation of ODS and ODS-containing equipment disposal.
UNIDO-Business working group proposed amendments to laws and by-laws, organized experts’ evaluation of draft instruments developed by MNRE, and disseminated information and knowledge among market players.
In 2015, the Union of eco-friendly PU product manufacturers and consumers (www.foamunion.ru) was created for the foam sector, which helped to collect additional statistics of ODS consumption in the foam sector, develop institutional proposals, raise awareness of the PU subsector in ozone-safe technologies and results of their introduction in Russia.
The leadership of the Union established the Center of new technologies in production of preinsulated pipes using ozone and climate safe foaming agents, which:
• studies physical and mechanical properties of foams made with ozone safe foaming agents; • develops ozone safe polyol formulations to accelerate conversion of the preinsulated pipe sector to ozone safe technologies; • approbates end products; • develops and approvs regulations (TU, STO, specifications etc.) for products; introduces formulations with ozone safe foaming agents in mass production
72 of preinsulated pipes in the Russian Federation).
Experts shared best practices in the Project implementation both at annual meetings of the ECA Regional ozone network and in showdown of the Project achievements to Russian and foreign specialists (first of all those from the Republic of Belarus and Turkmenistan).
In addition, various events and conferences further supported good communication and coordination among cross-functional stakeholders (www.ozoneprograms.ru).
To improve/raise awareness the following means were used:
• UNIDO-Business working group; • Union of eco-friendly PU product manufacturers and consumers; • www.ozoneprogram.ru , the first Russian website dedicated to the ozone problems which offers information about Russian and foreign ozone legislation, documents, videos, translated documents describing global experience in HCFC phase-out, information about project activities; • regular newsletters to more than 20 000 subscribers or particular groups of addressees; • www.foamunion.ru , the website of the Union of Eco-Friendly PU Product Manufacturers and Consumers; • www.hvaccenter.ru , the website for training of refrigerating and air- conditioning technicians through free online-courses, promotion of the training center, demo-projects based on CO2 and HC, legal library for specialists of the refrigerating sector; • regular publications in common—Izvestia, Argumenty i Fackty—and
73 specialized mass media —UNIDO in Russia, Climate World, Refrigerating Equipment, Empire of Refrigeration, etc.;
In 2011, the Russian Federation first saw the celebration of the International Day for the Preservation of the Ozone Layer throughout Russia.
In 2013, MNRE, Ministry of Education and Science and UNIDO organized all-Russian competition “Protect the ozone layer and Earth climate”.
Training and certification courses organized as part of the project are:
• courses on use of natural refrigerants, • courses for specialists in installation, repair and maintenance of refrigeration systems and process engineers of the foam sector; • on international and Russian ozone protection legislation;
Master-classes with participation of international experts were organized to train in natural refrigerant handling.
Training facilities on the basis of vocational secondary educational institutions and re-training centers for adults were created. These facilities are used for training college and institute students, up-grading of technical specialists and officials of federal executive and security agencies.
5 trade conferences and 30+ workshops were organized, PR campaigns held and information and video materials prepared.
74 Support in holding WorldSkills Russia was provided to promote ozone-safe air- conditioning and refrigeration technologies.
Representatives of UNIDO, self-regulating organizations and educational institutions met with officials of executive agencies from Russia, Tatarstan, Kazakhstan, Kyrgyzstan to familiarize them with ozone-safe technologies.
Customers and trade specialists were regularly trained at demo projects designed to to demonstrate new technologies and energy efficiency and safety of handling natural refrigerants:
• hydrocarbon heat and refrigeration supply system for a mini-hotel with a shop and laundry, • Demoorking model of a CO2 refrigerating unit for a retail food store.
The conference “Implementation Results of UNIDO/GEF-MNRE Project” and press- conference “Russian refrigeration industry and global environmental agreements” at RIA Novosti were held.
Working groups with FCS and MIA were organized.
Proposals on organization of customs control over ODS and ODS-containing product import/export to/from the territory of the Customs Union were prepared.
UNIDO–FCS working group was created to strengthen control over ODS
75 import/export and equipment of ODS checkpoints with instrumental control means and combat illegal ODS circulation in the Russian Federation.
Cooperation between licensing authorities and customs services of Russia and China was faciliated.
Participation in the inspection of customs checkpoints was taken to ensure their inclusion into the list of checkpoints approved by Regulation of the Government of the Russian Federation No. 687 dated 06.07.2012 “On determination of border checkpoints of the Russian Federation through which the arrival of ozone-depleting substances on the territory of the Russian Federation is permitted”.
Interaction between UNIDO and MAI and FCS—both as part of created joint working groups and consulting for representatives of MIA and FCS by representatives of UNIDO and business in organization of training and legal issues arising in case of seizure of large volumes of illegally imported ODS—was organized. Representatives of UNIDO–Business working group assisted in solving crimes related to illegal ODS import and in provision of information about environmentally safe temporary storage of such substances.
Meeting “Prevention of illegal ODS import into the Russian Federation and reduction of ODS leakage and emissions during maintenance of ODS-containing equipment” was organized.
76 Day-to-day interaction between MIA and business (producers and suppliers of refrigerants) was set, and key illegal schemes of ODS import were specified; and cooperation as part of UNIDO–MIA working group was agreed (Moscow, 25.01.2013).
Analytical equipment for the Forensic Science Center of the Ministry of Interior Affairs and ODS rapid-response analyzers for operating units and use as training aids as part of the advanced training course for MIA’s and FCS’s officials was purchased and supplied.
Unique manual “Tools and methods for detecting ozone depleting substances” was written and printed which covers global experience in combatting illegal ODS circulation, respective legislation of the Russian Federation and Customs Union, key ODS producers and consumers, production and consumption of ODS in the Russian Federation, common ways of illegal ODS import and methods of handling illegal ODS after detection.
72-hour training course “Tools and methods for detecting ozone depleting substances” was developed with respective presentations, films, and a training laboratory was equipped for training of MIA’s and FCS’s officials.
18 representatives of the Main Office for Combating Economic and Corruption Crimes, Federal Customs Service and Russian Customs Academy and 2
77 representatives of educational institutions who may be engaged as experts i n case of detection of large volumes of illegally imported ODS underwent practical training under 72-hour training course “Tools and methods for detecting ozone depleting substances”. Learn more at: http://www.ozoneprogram.ru/meroprijatija/051113/
Consulting advice to the Office for Combating Economic and Corruption Crimes of MIA in respect of illegal ODS import was given.
Assistance to the Main Office for Combating Economic and Corruption Crimes of MIA of Russia in selection of a specialist in detection of illegally imported ODS was provided.
Assistance in selection of a specialist and provision of equipment necessary for respective duties to Main Office for Combating Economic and Corruption Crimes was provided. In January 2014, operations staff of the Main Office for Combating Economic and Corruption Crimes of the Ministry of Internal Affairs of the Russian Federation clamped down on an attempt of illegal import of ODS.
Assistance in selection of a specialists provision of equipment necessary for respective duties to FCS.
Consulting for FCS's officials in matters of illegal ODS circulation was performed.
78 2. HFC and • Implementation • Climate impact HCFC life cycle of a sustainable benchmark data The climate change mitigation policy was accepted by the Government. performance phase out for the Russian analysis strategy for Federation Analysis of HCFC/HFC life cycle using equipment installed at facilities of various scale different HCFC • Clear selection GEF Financing consuming criteria for the was performed: from industrial enterprises to international airport. Following the 250,000 subsectors selection of analysis, report “Design and Selection of Equipment for Minimizing Climate Impact” 71% • Capacity to adapt alternative to developing technologies (submitted to MNRE and Ministry of Industry and Trade) was prepared. The report Co-financing phase out which take reflects front-end methods of improving energy efficiency in systems; analysis of 100,000 scenarios, account of climate 29 % international impact superheating and subcooling; arrangement and installation of equipment; climate • Climate change equipment service instructions; system commissioning; refrigerant charging; Total agreements and mitigation policy 350,000 technology customization of control systems; comparison of climate effect of refrigeration developments systems; computer model of comparison of climate effect; dependence of energy STA consumption of refrigeration and air-conditioning equipment from weather conditions; example of TEWI calculation.
The concept of creation of energy efficient demo projects in the refrigeration sector using natural refrigerants was developed and formally supported by MNRE. In 2015, the ideas of the concept were implemented as part of demo projects based on natural refrigerants and 2 feasibility studies were prepared.
Scenarios and mechanisms of HCFC phase out may be used for HFC phase out and be adapted to developing phase out scenarios, international climate agreements and technology developments. Currently, the Russian government considers various
79 F-gas phase out scenarios. All the Project sub -projects use both non -HCFC and non - HFC energy efficient technologies in refrigeration and air-conditioning and foam sectors. These technologies demonstrated high performance, energy efficiency and commercial acceptability for the Russian market.
Results of the Project implementation may lay in the basis of F-gas focused actions.
3. Phase out of • HCFC • Series of HCFC consumption demonstration According to the Montreal Protocol and resulting Government resolution No. 228 consumption in within Montreal conversion sub- dated 24.03.2014, consumption rates were to be reduced to 399.69 ODP tonnes. the key Protocol phase projects in key consuming out obligations HCFC consuming sectors of Foam • Clear sectors Conversion of enterprises, together with changes to the Russian legislation, ensured and understanding of • Technical compliance with this value. Thus, according to the Ozone Secretariat, 2015 Refrigeration the technical assistance capacity to phase (technology consumption was equal to 344.67 ODP tonnes. GEF Financing out within each transfer, 10,000,000 sector engineering Reduction of GHG emissions was ensured by phase of out ODS which are 25% • Phase out of 600 services, greenhouse gases with high GWP, so decreasing their use resulted in decrease in ODP tonnes HCFC equipment and Co-financing (22, 141b, 142b) instrumentation, GHG emissions. Conversion to non-HFC technologies and obtaining of institutional 30,000,000 Reduction of etc.) required for support in tranfer to energy efficient natural refrigerants and solutions based on 75 % direct and indirect conversion of GHG emissions pilot sub-projects their use helped to achieve this objective. Total through HCFC • Demonstration 4,000,000 phase out and sub-projects from To ensure phase out of HCFC (21, 22,141b and 142b) complex approach and improved energy different HCFC Investment efficiency of and HFC consistent implementation of all the Project components (adoption of the federal replacement consuming sectors law aimed at fulfilment of Russia’s obligations under the Montreal Protocol; technology and sub-sectors
80 conversion of the Project beneficiaries to non -HFC technologies; training and energy efficiency improvement measures, and measures against illegal ODS import to the Russian Federation) were required. The conversion, particularly, included, implementation of institutional and investment demo projects in the refrigerating equipment sector (conversions of air-conditioning manufacturing plant to HC, conversion of commercial refrigerating systems to CO2 and provision of extra equipment, supply, installation and commissioning of monitoring and other equipment).
The conversion involved 14 enterprises, at 12 of them foam equipment was converted, and at the reminder, production lines for refrigeration equipment were converted:
• Izolyatsiony trubny zavod (Pipe-insulation plant), Peresvet city, Moscow region; • KZH Biryusa, Krasnoyarsk; • Polus Company, Yoshkar-Ola; • TPK Orskie zavody , Orsk, Orenburg region; • Tsentrtranstekhmash, Ryazan; • Shumerlya Plant of Purpose-built Vehicles, Shumerlya, Chuvash Republic; • Krasnogorsk Trailer Industrial Complex, Krasnogorsk, Moscow region; • Ariadna-Yug, Leningradskaya, Krasnodar region; • Dow-Izolan, Vladimir; • Vladipur, Vladimir; • SEPO-ZEM, Saratov;
81 • Pozis (Sergo plant), Zelenodolsk, Tatarstan; • Ostrov-Komplekt , Moscow region; • KPP Nord, Moscow region.
The conversion at system houses, Dow-Izolan and Vladipur, included development and adoption of premixed ozone-safe polyol systems based on methyl formate and cyclopentane, which allowed not only refuse from using ODS but also reduce cost of foam component.
To ensure the replication, agreements with the involved enterprises on access to the production facilities and conversion results, local availability of equipment and technical support, were signed.
The conversion included development of ToRs and technical specifications (in cooperation with enterprises receiving technical aid), supply, installation and commissioning of equipment and training of the personnel.
All the solutions are sustainable so return to HCFCs is not profitable.
The training component was also realized in the form of workshops.
Сonversion results were disseminated through UNIDO–Business, Union of eco- friendly PU product manufacturers and consumers, and such Project partners as MNRE, Ministry of Education and Science, Federal Service of Russia on Hydrometeorology and Monitoring of the Environment of the Russian Federation,
82 Russian Union of the Refriger ation Industry Enterprises, Belarus Ministry of Natural Resources, self-regulating organization NP ISZS–Montazh, Association of Electronics and Computer Hardware Commercial and Manufacturing Companies (RATEK), Daikin, Elastokam, Kontakt, Podolsktorgtekhnika, Kholodbyt association, State Engineering College No. 23, International Refrigeration Academy, International Higher Education Academy of Sciences, Institute of Refrigeration and Biotechnologies of the Saint-Petersburg National Research University of Information, Mechanics and Optics (SPbNIU ITMO), D. Mendeleev University of Chemical Technology of Russia, Gubkin Russian State University of Oil and Gas, WorldSkills, GAOU UTs Professional, National Association of PU Panel Manufacturers (NAPPAN) and Association of Preinsulated Pipe Manufacturers and Consumers (APPTIPI).
The Russian market was studied by sectors in detail, within the context of HCFC phase-out, as well as substances and technologies that could be used as alternatives.
To prepare recommendations for federal executive bodies and undertakings concerned, respective research and meetings with market players were held, learning tours to study new alternative technologies and disposal methods were organized. In accordance with findings, a set of information and analytical materials, including but not limited to a list of technologies suitable for introduction in ODS- using sectors, with account of the Russian market specific character, was prepared.
83 4. Development • Detailed analysis of ODS • Technical and of destruction Key market participants familiarized with commercial attractiveness calculation destruction commercial requirements and mechanism for creation of ODS destruction facilities developed by UNIDO and with facility and understanding of selection of the supporting practice of operation of ODS destruction facilities in EC countries. the feasibility of recovery most appropriate operating ODS technology to network The commercially attractive waste treatment measures were established by Federal destruction provide adequate GEF Financing facilities destruction law No. 458 “On amending Federal law “On production and consumption waste” 2,300,000 • Strategy for the capacity for all dated 29.12.2014. 27% provision of ODS recovered ODS
destruction across • Co-financing Design and The Steering Committee of the Project selected the beneficiary for a ODS the Russian installation of 6,266,782.52 refrigeration equipment disposal plant, which earlier had refrigeration equipment 73% Federation destruction facility and collection programs on the territory of the Russian Federation in cooperation with Total appropriate foam largest chain stores. 8,566,782,52 processing
equipment Investment Sustainability of the plant is ensured by:
• legislative changes were made, including ban on landfilling of wastes (goods, products) containing ODS unless ODS are recovered or reclaimed for further use or environmentally safe destruction; • establishment of the beneficiary’s contacts with UNIDO–Business and leading Russian refrigeration and air-conditioning associations for purpose of drawing up joint programs; • training of representatives of the refrigeration sector and controlling authorities and comprehensive public awareness programs regarding ways and need of ODS disposal.
84 MNRE and UNIDO facilitated meetings and consultations with regional executive bodies and industry stakeholders.
The practical guide on management and destruction of ODS in the Russian Federation was prepared and submitted to MNRE and Ministry of Industry and Trade.
UNIDO and UNIDO-Business working group made proposals on disposal, regeneration, recirculation, and destruction of ODS and ODS-containing equipment.
Government’s decree No. 228 “On measures of state regulation of consumption and circulation of substances that depleted the ozone layer” dated 24.03.2014 provides for creation of ODS banks.
Since the ODS consumption monitoring function is entrusted to the Federal Supervisory Natural Resources Management Service, in 2015 its inspectors were trained as part of the Project.
General supervision of ODS accounting is performed by MNRE via the ODS accounting system.
Proposals on alternative funding mechanisms for cutting GHG emissions were formulated at UNIDO-Business group meetings and submitted to MNRE.
New laws—No. 458-FZ “On amending Federal law “On production and consumption
85 waste” dated 29.12.2014 and No. 226 -FZ “On amending Federal Law ‘On Environment Protection’ and certain legislative acts of the Russian Federation” dated 23.07.2013—oblige producers/importers to either pay significant environmental fees or organize corporate collection and disposal systems with possible involvement of a specialized disposal company as provided for by regulations and which is much more attractive in terms of commerce.
The disposal company may also make profit from selling secondary resources obtained from processing of ODS and ODS-containing equipment.
5. Stimulating • Increased market • Manufacturers in market growth share of higher all sectors The nature of the market has made it more challenging to get stakeholders to for energy energy efficiency converted to new prioritize energy efficiency without any legal or financial imperative to change. efficient refrigeration and high efficiency refrigeration air conditioning designs Therefore the Project strategy was first to create the legal imperative to phase out • and air equipment Published HCFCs, and then to demonstrate the potential energy and operating cost savings conditioning • Reduction in GHG information on equipment emissions from policy measures that can be achieved by efficient natural refrigerants and foaming agents. refrigeration and and barrier GEF Financing air-conditioning removal MNRE supported the joint launch of energy-efficient demo projects using natural 500,000 systems of 10 approaches 71% MMT CO2 after 5 • Published study refrigerants. years and Co-financing • Greater consumer methodologies for New refrigerants (HFO) were procured and distributed among key HVAC&R 200,000 and user conducting stakeholders for purposes of demonstration and testing. They were also used in 29% awareness and market increased demand assessments implementation of a demo-project based on hydrocarbons and HFO1234yf as part Total for energy • Energy efficiency 700,000 efficient marketing
86 technology campaign of phase -out of HCFC -22 and HFC 134a. Technical • Improved (demand drivers) Assistance / knowledge of The ban of equipment containing HCFCs highlighted the importance climate impact Investment energy efficient design, as well as ozone layer protection in the selection of new equipment and led to installation and increase of the share of EE equipment supplied and manufactured. operating practice across industry The Chairman of the Government of the Russian Federation has issued an instruction to develop and market low GWP refrigeration equipment including small- scale ammonia as part of the federal target programme, a unique information portal, was created for this development.
Widespread celebration of the International Day for the Preservation of the Ozone Layer with participation of secondary schools, secondary and higher vocational institutions and federal executive bodies was organized.
Decrease of GHG emissions in the refrigeration and air-conditioning equipment sector was also ensured by:
• development of professional and educational standards for the HVAC&R sector; • organization of two pilot plants producing equipment based on HC and CO2; • establishment of two demo-projects using ozone-safe technologies; • establishment of training centers, development of certification courses and courses on use of natural refrigerants for dissemination in the HVAC&R sector and educational system of the Russian Federation; • development of standards of the Custom Union's member countries on
87 regulation of t he ODS use; • introduction of the ODS accounting system proposed by the project team and planned conversion of the system into digital format basing on the experience of the EU's countries and Turkish Republic.
Dissemination of information and increased awareness of market participants are contributed by such events as elaboration of the energy efficient project concept supported by MNRE and events related to the promotion of energy efficient solutions (development of training courses and organization of conferences on the use of natural refrigerants).
Case study presentations and workshops describing demo projects made it possible to present their results to numerous specialists of the refrigeration and air- conditioning sectors, federal officials and potential customers.
Following the conversion to CO2 or hydrocarbons and presentation of demo- projects and distribution of their results, large Russian customers such as Magnit, Metro, etc. took interest in new technologies, so contracts for equipping their facilities with energy-efficient systems were concluded.
Deputy Minister of Natural Resources and Environment informed the Ministry of Industry and Trade, Ministry of Economy and Trade, Ministry of Culture, Chamber of commerce and industry, Russian Council of manufactures and entrepreneurs, Federal tourism agency, Russian hotel Association, Russian Council of the Tourism
88 Industry about new opportunities related to these energies efficient and environmentally safe technologies.
A separate letter was sent to the Major of Moscow who charged the Moscow innovation agency with studying its potential for use. Prepared information packages with recommendations of Rossoyuzkholodprom was sent to potential customers. The projects results were presented at the press-conference at RIA Novosti, the largest Russian information news agency.
Measures to support creation of the association/working group of foam manufacturing companies with the aim of reducing ODS and F-gas consumption allowed to demonstrate energy-efficient solutions in the foam sector to the major part of the majority of the market.
Increased knowledge and awareness level was reached via
• transition of all the Project beneficiaries to energy-efficient technologies and familiarization of all market participants with those technologies; • creation of 2 energy efficient demo-projects based on CO2 and hydrocarbons, and their support from part of MNRE including distribution of information to largest ministries and agencies; • preparation of feasibility studies that prove their attractiveness in terms of energy efficiency of natural refrigerants in the refrigeration sector; • training with presentation of demo-projects to representatives of customers, trade associations, specialists of the refrigeration and air- conditioning sector and federal officials;
89 • opening of the Microclimate, Energy Efficiency and Building Automation Center and Vercont training center; • development of training courses covering commercial attractiveness and energy efficiency of natural refrigerants in the refrigeration sector; • development and distribution of guidebook “Design and Selection of Equipment for Minimizing Climate Impact” http://www.ozoneprogram.ru/biblioteka/posobija/ocenka_okehp/ ; • participation of UNIDO’s experts in numerous activities dedicated to improvement of energy efficiency both in Russia and abroad; • organization of training and conferences (training “Ecological and economic efficiency of CO2 commercial refrigeration equipment”, conference “Natural refrigerant ammonia. Chemical and technical security of the Russian Federation”, master-class on using propane in refrigeration systems, etc.) where natural refrigerants were considered in terms of their energy efficiency at various facilities.
• Centre of 6. Technology • Technology excellence for As part of the Project implementation, technology transfer of non-HFC alternatives Transfer Transfer of non- training of to HCFC applications was performed: HFC alternatives specialists and GEF Financing to HCFC provision of • carbon Dioxide refrigeration systems: organization of production of CO2 2,700,000 applications design, licenses 30% refrigeration equipment and demo-project “Organization of manufacture of • More higher and engineering CO2 refrigerating equipment and presentation of a working model of a CO2 efficiency RAC Co-financing know-how refrigerating unit for a retail food store”; systems in use 6,300,000 • Conversion of • methyl Formate Systems House: conversion of the systems house to ozone- 70% across the Russian HCFC based safe methyl formate, developed technology of using methyl formate in PU Federation refrigeration and systems; Total • Increased Private foam systems • 9,000,000 hydrocarbon refrigeration and air-conditioning: organization of production
90 sector energy • Energy of HC refrigeration and air -conditioning equipment; Implementation of Technical efficient design performance and demo project “Hydrocarbon heat and refrigeration supply systems for a Assistance / capacity quality standards mini-hotel with a shop and laundry”; Investment • Increased use of for key • energy performance and quality standards for key technologies, energy high efficiency technologies efficiency technologies including variable speed drives, condenser design manufacturing • Energy efficiency and manufacturing equipment, engineering and thermodynamic design for equipment technologies energy efficient refrigeration and air-conditioning equipment: process including variable equipment to improve energy efficiency of goods via replacement of speed drives, outdated equipment was supplied; infrastructure of the training center in condenser design work with environmentally safe energy efficient refrigerants in refrigeration and manufacturing and air-conditioning equipment. equipment The professional standard “Refrigerating, heat pump, and air-conditioning equipment technician.” was developed by industry representatives.
Training of employees at enterprises that use HFC-based technologies, and technical assistance to such enterprises to ensure that they conduct their production activities in a manner that poses the lowest risk to the global environment (e.g. limiting emissions of HFCs during foam production, servicing RAC equipment, etc.) was organized.
Two-day workshop “Training of personnel of Russian enterprises producing preinsulated pipes in conversion to ozone-safe technologies” took place on September 9–10, 2015. (RFP No.7 of the ICSTI Third progress report and Final report).
91 Dissemination of energy efficient systems in the RAC sector was supported by Federal law No. 261-FZ dated 23.11.2009 “On energy saving and energy efficiency and on Amendments to Certain Legislative Acts of the Russian Federation.”
To support dissemination of energy efficient systems demo projects based on natural refrigerants were implemented, national standards were developed and regular training at training centers was organized.
Activities on creation of certification courses for heating, ventilating, and air conditioning and refrigeration (HVAC&R) equipment installation, repair, and maintenance technicians were completed.
On June 17–18, 2014, Professional placed two-day UNIDO’s workshop “Establishment of the certification and accreditation system for technicians engaged in installation, maintenance and repair of refrigerating, air-conditioning equipment and heat pumps.” The presentation covered 4 levels of professional development programs for professionals engaged in current maintenance and servicing of refrigerating installations as well as management, training and knowledge assessment of staff. These programs were updated to comply with professional standards, and digitized for online access to cover maximum audience.
Specialized courses on natural refrigerants were developed.
A unique training certification center was created to transfer technologies for the
92 whole territory of the Russian Federation.
Training courses based on UNIDO certification courses were developed with account of new professional standards and adapted for publication at a specialized training website.
In cooperation with UNIDO-Business, activities on development of the Russian legislation and regulatory framework with regards to promotion of natural refrigerants (ammonia, propane, CO2) and foaming agents (cyclopentane, methyl formate, methylal, etc.), and equipment that uses them were held in 2013–2015 for the private sector were conducted.
This ensured improvement of energy efficiency of manufactured equipment by 20– 28% depending on selected technology.
7. Feasibility • Stakeholder • HCFC production study to facilitation to closure strategy Concept “Phase-out of production of hydrochlorofluorocarbons at enterprises of the determine the agree production chemical sector in the Russian Federation in 2013–2014 and 2015–2020” was best and most closure strategy integrated • 1,840 metric tons developed. Cooperation agreements in principal with Russian HCFC producers were strategy for of HCFCs closed reached. dealing with HCFC production The Russian Government was submitted proposals on organization of production of closure ozone-safe HC and synthetic refrigerants with low GWP.
GEF Financing
93 171,728.31 Government decree No. 228 dated 24.03.2014, inter alia, banned design (since 46% 1.07.2014) and construction (since 1.01.2015) of any facilities used for economic or Co-financing other activity where ODS or ODS-containing eqiument are produced and established 200,000 54% available consumption volume for 2015-2019 to be equal to 399.69 ODP tonnes.
Total Closure of HCFC production at VOAO Khimprom allowed to reduce production by 371,728.31 1,840 metric tons. Technical Assistance
94 Project Co-Financing
Amount of Organization/company co-financing, USD 1 MNRE 176465,44 2 Minpromtorg and Roskosmos (inclu ding 1,861,111 USD for Chimprom) 8894511,08 3 Daikin and Dupont sponsorship 11378,00 4 Vercont LLC Training Center 250000,00 5 Сollege #23 (former Сollege #19). Microclimate, Energy Efficiency and Building Automation Center 100000,00 6 Samsung Electronics, Daikin, Clivet, Remak, Euroclimate, Informtech, Mitsubishi Electric, Testo for Сollege #23 180000,00 7 OAP PO Sergo Plant Po zis, Zelenodolsk, Tatarstan 6000000,00 8 SEPO -ZEM LLC, Saratov 5000000,00 9 OAO Polus Company, Yoshkar -Ola 2928000,00 10 NVP Vladipur LLC, Vladimir 2500000,00 11 DowIsolan, Vladimir 85000,00 12 Pipe Plant LLC, Peresvet, Sergievo -Posad district, Moscow region 1552000,00 13 KZKh Biryusa JSC, Krasnoyarsk 4212000,00 14 TPK Orsky plants, Orsk 3646000,00 15 Shumerlya plant of purpose -built vehicles JSC, Shumerlya, Chuvash republic 245000,00 16 Krasnogorsk trailer industrial complex JSC, Krasnogorsk, Mosc ow region 235000,00 17 Tsentrtranstekhmash LLC, Ryzan 460000,00 18 Ariadna -Yug LLC, Leningradskaya, Krasnodar region 105000,00 19 Ostrov -Komplekt LLC, Moscow region 1000000,00 20 KPP Nord LLC, Moscow region 478299,00 21 OOO UKO 6315000,00 22 Center of new technologies in production of preinsulated pipes using ozone and climate safe foaming agents 693129,00 Total 45066782,52
95 7 Lessons learned
7.1 General
Close cooperation between the private sector and government is particularly important. The private sector’s interests, when amending laws and developing Government directives, is a vital component required for achieving the efficient implementation of such programmes. UNIDO has been able to facilitate this cooperation through the extensive engagement efforts made by the PMU. National experts are beginning to pay dividends, with private stakeholders now seeing UNIDO and MNRE as trusted partners and supporters.
The relationship between the public and private sectors in Russia, and aspects of the prevailing business culture, have an impact on the speed and order in which programme activities can be implemented. Many stakeholders are wary of engaging in activities or discussions until the activity is official mandated by a Government edict. This means that by the time an activity officially starts, a certain period of time has already elapsed, which could have been used for initial discussions, analysis or feasibility studies. Whilst ongoing engagement and coordination may well reduce the impact this issue has on implementation timescales, it should be taken into account when planning future projects.
At the beginning of the project there was low public awareness regarding the ozone protection issues and relative ambivalence towards the climate benefits of energy efficiency. Communications campaigns and stakeholder engagement activities have made a significant impact, but is very clear that this area requires continuing effort.
The centre of excellence approach (also known as the Microclimate, Energy Efficiency and Building Automation Centre) shows a potential way for engaging grass roots stakeholders and building in climate and energy efficiency issues into basic training and education of technicians and school graduates. Having a physical space dedicated to demonstration and training in certain technologies also provides a useful vehicle for cooperation between public and private stakeholders. The centre established in Moscow is partly sponsored by Samsung and supported by the Russian Energy Agency, Ministry of Energy of the Russian Federation and the Environmental Certification Centre for Green Standards.
At the closing stage of the project, a training center for education in the field of work with environmentally sound energy efficient refrigerants used in refrigerating and air-conditioning equipment and recovery of ozone- depleting and fluorinated greenhouse gases from equipment containing them for further recuperation and destruction was established. Rossoyuzkholodprom, the largest Russian association of the refrigeration sector, together with the center, is currently organizing interactions with
96 governors and heads of governments of Russian regions to disseminate lessons obtained within the framework of the project at the local level. So, training programmes, manuals, methodological materials, distant training system, concepts of training centers, demo-projects based on natural refrigerants and other results will be disseminated in all Russian regions. This resulted from the positive outcome of the project milestones and great cooperation among the project stakeholders.
In the foam sector, not only was a new forum created for discussing the issues related to the introduction of ozone-safe technologies, but there was also interest in continuing its operation after the project’s completion. Particularly, in addition to the Union of Eco-Friendly PU Product Manufacturers and Consumers, the creation of the a center for the introduction of new PU preinsulated pipe technologies using ozone- and climate-safe foaming agents was initiated which will deal with the studying of foams based on ozone-safe foaming agents, development of ozone-safe polyol components, approval of end- products, development and endorsing of standards, technical specifications, etc. for production, and introduce formulations based on ozone-safe foaming agents into the mass production in Russia.
Further lessons learned:
• Preparation of a detailed Project implementation plan on a tight schedule in conformity with Russian conditions, so minimum corrections were required. • Compliance with UNIDO and GEF procedures and rules for the implementation of investment and institutional projects which made it possible to avoid errors and minimize time and financial expenditures. • Interaction with professional trade associations and unions, the order of which was worked through during the development and public debate of legal and regulatory instruments and standards, the order of interaction with professional trade associations and unions. • Working through the mechanism for involvement of business entities, selection of a coordinator, control over development of action plans and their implementation as part of the establishment of a trade union, Union of Eco-Friendly PU Product Manufacturers and Consumers. • Preparation of terms of reference for tenders on manufacturing equipment purchase in cooperation with beneficiaries . The equipment supplied under signed contracts met demands of beneficiaries that received technical aid to the maximum. • Control over, and monitoring of, the implementation of investment sub-projects almost over the whole territory of the Russian Federation. Although some beneficiaries’ facilities are located far from the ICSTI’s head-quarters, an interaction algorithm was worked through. • Order of administrative, logistic and customs support of implemented investment sub-projects was worked through so the manufacturing equipment and hardware were supplied in the timescale available. • Effective search, selection, and evaluation of financial viability and technological readiness for project activities, of beneficiaries for sub-projects. Despite the economic meltdown, all implemented sub-projects resulted sustainable.
97 • Development of roadmaps for federal executive bodies concerned for purposes of ensuring sustainability of the project which will strengthen and develop results obtained during the implementation after the project completion.
7.2 Project implementation under complicated foreign-policy and economic circumstances
In 2015, economic sanctions by the USA and EU were imposed against the Russian Federation, which affected some sectors and enterprises. That year, RUB/USD and RUB/EUR exchange rates decreased more than by 30%, the slump of the Russian economy continued, as GDP fell by 3.8% and the budget deficit amounted 2.6% of GDP.
Under such conditions, the need in checking the capacity to supply double-purpose equipment to Russia (e.g. pumps for hydrocarbon ozone-safe foaming agents used also in the petrochemical industry, etc.) emerged, and also in clearing whether beneficiaries are related to any entities or banks against which international sanctions are imposed, which may entail delayed payments to contractors.
To prevent any conditions impeding the project implementation, extra time was allotted to ensure continuous monitoring of the above factors, which made it possible to avoid the risk of the delayed project implementation and occurrence of force majeure. That was a very challenging situation beyond the control of PMU, and was not foreseeable as a risk during the project development.
7.3 Consideration of the nature of the national legislation
Currently, the national ozone legislation allows the Russian Federation to fulfil its current obligations regarding protection of the ozone layer to the full, and meet its targets under the project.
However, to ensure the project sustainability on a mid-term horizon, extra attention should be paid to the nature of the national policy in law-making, law enforcement effectiveness, and possibility of adaptation of respective legislative practice of other countries.
In the course of the project implementation, it was found that existing and efficient European regulations on the use of ozone-depleting substances and f-gases, control over work of technicians engaged in installation, repair and maintenance of refrigerating and air-conditioning equipment to minimize refrigerant leakage and introduce ozone-safe technologies could not be transferred to the Russian Federation as is, because of the declared national policy to decrease administrative load on business. In this regard, a mechanism providing for the development of professional standards, in the first place, then educational ones, and only after that a technicians’ certification system was offered. Currently, the mechanism is brought into service.
98 Special attention was paid to the practical implementation of federal laws, and legal and regulatory instruments of the Russian Government and, as consequence, to staff training of government bodies in charge of control over use of ozone-depleting substances: the Federal Customs Service, Federal Service for Supervision over Natural Resource Management, and Ministry of Internal Affairs of the Russian Federation.
7.4 Non-government organizations, associations, and business entities and their attitude to activities under implementation
The project sustainability directly depends on the efficiency of cooperation between PMU and non- government organizations and associations, representatives of sectors affected by institutional changes resulting from the project implementation.
In the course of implementation of the project, the national executing agency continued applying UNIDO’s approach to strengthening the institutional potential with due regard to:
• nature and status of development of non-government organizations and associations (alliances, trade associations, self-regulating organizations) in the refrigerating, air-conditioning and foam sectors of the Russian industry; • attitude of those associations and representatives of small and medium business to project activities; • involvement of those associations and representatives of small and medium business in carrying out activities related to development of laws and institutional strengthening; • specific practicalities and interests of organizations and market participants.
Thanks to this, all major associations of the refrigerating and air-conditioning sector were involved in development of regulatory and legal instruments, and building of their cooperation in preparation of drafts was initiated.
7.5 Monitoring of beneficiaries’ viability and their support after completion of the project implementation
The project document, also a basis of the project implementation, was developed before the project’s kick-off. During the implementation, especially in the volatile situation in the Russian economy described above, the beneficiaries’ economic and financial status might change significantly.
Since the financial crisis might have affected the beneficiaries’ viability, great efforts were made to monitor their current status and evaluate their ability to do successful business both during and after the project.
99 In this regard, the Steering Committee recommended MNRE to “support Russian enterprises implementing demo-projects on introduction of ozone-safe natural refrigerants (carbon dioxide, hydrocarbons) and foaming agents (methyl formate, cyclopentane); the Center for introduction of new PU preinsulated pipe technologies using ozone- and climate-safe foaming agents; enterprise engaged in disposal of domestic refrigerators, freezers, and other items containing ODS; training centers in work with environmentally sound energy efficient refrigerants used in refrigerating and air-conditioning equipment and recovery of ozone-depleting and fluorinated greenhouse gases from equipment containing them for further recuperation and destruction, and participants of other sub-projects implemented as part of the Project” (minutes of the meeting No. 8 of the Steering Committee of the UNIDO/GEF-MNRE Project dated 10.12.2015).
7.6 Consistency and completeness of the Project implementation
UNIDO/GEF-MNRE Project No. GF/RUS/11/001 “Phase out of HCFCs and Promotion of HFC-Free Energy Efficient Refrigeration and Air-conditioning Systems in the Russian Federation through Technology Transfer” provided for Phase II, which was expected to include activities on ensuring recovery of ozone- depleting substances (and F-gases, later) on the territory of the Russian Federation for further recuperation and reclamation for recirculation (recycling) in the service sector or destruction, including:
• development of draft legal and regulatory instruments for state monitoring of compliance with requirements to circulation of ozone-depleting substances; • development of draft legal and regulatory instruments for destruction of ozone-depleting substances; • organization of development and harmonization of regulatory and legal instruments as applicable, including professional and educational standards with detailed description of ozone-depleting substance recovery, recuperation, reclamation, recirculation (recycling) and destruction procedures; • organization of training for officials of territorial bodies of the Federal Service for Supervision over Natural Resource Management in charge of control over compliance with requirements on circulation of ozone-depleting substances in the Russian Federation; • organization of training and professional development in environmentally safe methods of recovery of ozone-depleting substances and work with ozone- and climate-safe refrigerants and foaming agents for their active introduction in everyday practice for specialists of the refrigerating and foam sectors, in cooperation with self-regulating organizations, trade associations and leading companies; • creation and fitting out of a network of regional recovery points for ozone-depleting substance recuperation, reclamation, recirculation (recycling) or destruction, in the sector of servicing of existing refrigerating and air-conditioning equipment; • information of public, professional community (specialists of the foam, refrigerating, air- conditioning, and other sectors related to use of HCFC and HFC (solvents, firefighting agents, etc.)), and officials of federal executive, law enforcement, and customs bodies about the legal and regulatory framework of protection of the ozone layer, procedures and environmentally safe
100 methods of recovery, recuperation, reclamation, recirculation (recycling) and destruction of ODS, nature of work with ozone- and climate-safe refrigerants and foaming agents.
Considering the territory of the Russian Federation—more than 17 mln sq. km.—and diversified distribution of equipment containing ozone-depleting substances, failure to implement Phase II of the project will lead to incomplete implementation of the HCFC phase out program, being the part of the project. This may lead to major emissions of such substances into the atmosphere after equipment de- commissioning because of both, a lacking network of regional points for ODS recovery, recuperation, reclamation, recirculation (recycling), and destruction, and proper control over their circulation. At the same time, this would lead to critical shortages of refrigerants for the servicing of existing functional equipment, an increase of illegal imports of ozone-depleting substances from developing countries, and a slowdown of the introduction of ozone- and climate-safe technologies.
This, in its turn, may have an adverse impact on sustainability of implemented Phase I of the Project.
101 7.7 Gender Mainstreaming
The project ensured that both, women and men were able to provide inputs to, access and participate in project activities. There was a gender balance regarding recruitment of project personnel as well as gender-balanced representation in project committees. Examining the constellation of the project team, the PMU was consisting of 50% female and 50% male employees, at the initial stage. The PSC constellation was 30% female and 70% male at the end of the project and was chaired by a woman. A number of key and leading functions were performed by women working for different stakeholders involved in the project.
The employment of women in STEM subjects in the Russian Federation is high. Sector-related data reveals that the Russian Federation is one of the leading countries worldwide. According to UNESCO records, during the implementation phase of the project, Russia had the highest ranking of women engineers per country with 40.9 %. However, when examining the refrigeration sector, this percentage drops dramatically. This is not a country specific fact, but a global phenomenon. According to the International Institute of Refrigeration (IIR), this is linked to several factors, the main being lack of specific degrees in refrigeration, as well lack of awareness raising national/educational campaigns in schools and universities.
Under the umbrella of the project, several events, training courses and seminars were organized to raise awareness. The Nation-wide competition - "Protect the ozone layer and earth Climate", encouraged young girls and boys from universities, as well as higher school classes to participate. More than 600 scientific works were submitted, of which 36 made it to the final round. 26 of these were from female authors. The first 3 places were also scored by female participants. Also, the factories that were involved in the project organized events on a regular basis, where female employees were given particular recognition.
102
http://www.ozoneprogram.ru/novosti/vserossiiskii_konkurs/
Master-classes with participation of international experts were organized. Training facilities for university students were created, where female participation was encouraged.
The implementation of new and efficient technologies has not only contributed to a rise in efficiency, but also created new working places. The Constitution of the Russian Federation does not only expressively provides for the protection of women’s labor rights, equality of rights and freedoms with men and equal opportunities, but also restricts the employment of women in heavy work and work with harmful and dangerous working conditions. It also prohibits the employment of women in work requiring lifting and moving by hand weights exceeding the maximum permissible standards from them. Due to the implementation of new and efficient technologies, most of the heavy work was replaced by machinery and also created new working places, needed for its operation. As a result more female employees were able to enter into the workforce and for example currently 55% of the people employed at POZIS (one of Russia’s biggest refrigeration manufacturer) are female. This number continues to rise due to flexible and family friendly working hours as well as secure maternity leave policies.
At the time of the Project design gender was not a GEF requirement. As such the gender dimension and women's empowerment was not included in the Project formulation. As a result there was no systematic inclusion in project development. Gender indicators were not specifically monitored throughout the project lifecycle. This finding is in line with the Independent UNIDO RF’s evaluation (March 2014) which concluded that UNIDO did not follow up on the opportunity to systematically integrate gender perspectives into the majority of the projects.
103 8 Project sustainability evidence
• The Russian Federation reduces consumption of HCFC in accordance with its obligations under the Montreal protocol. Compliance with those obligations is supported by amendments to the legislation and control over its application. • Growth R-22 prices indirectly confirms HCFC phase-out. According to distributors, for the last 10 years its price increased eightfold: from RUB 46 to 380 per kilo. Since 2019 the deficit of the refrigerant will lead to monthly changes of price. • Largest users of HCFC as foaming agents and refrigerants started using ozone-safe energy efficient technologies. Thanks to the project, the share of domestic producers on the domestic market reached 23.85% before its completion. • New ozone-safe technologies (carbon dioxide, hydrocarbons, ammonia) already became more popular already the project’s implementation, and ammonia systems were included in the state programme under Government order of 3.08.2012 No. 1413-p. After implementation of the CO2 demo-project, many mass retailers started adoption of the technology. • National standards were updated and harmonized allowing the adoption of eco-friendly and energy efficient solutions: EN 378-1-2014, EN 378-2-2014, EN 378-3-2014, EN 378-4-2014, ISO 5149-1:2014, ISO 5149-2:2014, ISO 5149-3:2014, ISO 5149-4:2014. New professional standards ensure introduction of certification for technicians. • Training centers established as part of the project operate successfully and train technicians not only from Russia, but also from Armenia and Somalia, and share experiences with Armenian, Kazakh, Kyrgyz, Moldavian, Tajikistan, Ukrainian, Azerbaijani and Turkmenistan professionals. • PMU rendered assistance to WorldSkills, an international non-profit movement: the first domestic competition was held using training simulators developed and manufactured as part of the project. Today, Russia has won the competition twice in Refrigerating and Air Conditioning. • Thanks to the project’s assistance, FCS and MOI of Russia prevented the illegal import of several large stocks of HCFC and HFC. • Russia annually celebrates the Ozone day which was included in the programme of the comprehensive secondary school.
104 9 Conclusions and recommendations
9.1 Background
To draw up recommendations on ensuring sustainability of the project results and enhancement of efficiency of similar activities, it is advantageous to examine the main factors that may affect them, either directly or not, during the project implementation:
• foreign-policy and economic situation in the country receiving technical aid; • status of the ozone and climate legislation of the country receiving technical aid; • non-government organizations and associations, business entities and their attitude to activities under implementation; • monitoring of beneficiaries’ viability and their support after completion of the project implementation; • consistency and completeness of the project implementation.
9.2 Foreign-policy and economic situation in the Russian Federation
The experience of implementation of the project under complicated foreign-policy and economic circumstances shows that it is crucial to:
• consider time for the resolution of various administrative, financial, logistic, and other formal issues emerging in the course of the implementation of international projects in the same sort of situation; • continuously monitor the viability of banks and contractors, and evaluate their capability to fulfill obligations under an implemented project. • Priority should be given to local suppliers if available.
9.3 Status of the ozone and climate legislation of the Russian Federation
To ensure further sustainability of the project, it is necessary to:
• perform an in-depth study of the nature of the national legislation in areas where institutional strengthening is planned, which, particularly, is applicable to most CIS countries having much in common in national legislation and law enforcement practice; • implement a series of actions on working through the efficient law enforcement procedures in respective areas with focus on Eurasian Customs Union ; • conduct activities related to law enforcement with all Eurasian Customs Union countries ; • prepare recommendations and road maps for a federal executive body that initiated the development of the project and controls its implementation.
105 9.4 Non-government organizations, associations, and business entities and their attitude to the Project activities
In this regard, the general recommendation will be a large-scale involvement of non-government organizations, associations, and certain business entities in cooperation with the national executing agency, even when their interests do not fully coincide with the project implementation goals. This way it will be possible to avoid or significantly minimize the risk of confrontation between parties when any given proposals are introduced, and to find compromise that ensures sustainability of those proposals.
9.5 Monitoring of beneficiaries’ viability and their support after completion of the project implementation
To support the project beneficiaries under future projects it is necessary to:
• develop an algorithm for estimation of the beneficiary’s (recipient of technical aid) status; • develop monitoring criteria for the beneficiary’s viability both by the moment of delivery of equipment and provision of services as part of technical aid, and in the medium term; • develop an algorithm for beneficiary replacement and include it in agreements with national executing agencies for application in situations when the agency has sufficient and valid evidence of the beneficiary’s incapability to fulfil its obligations after completion of the project; • entrust a respective executive body that had initiated the project with control over beneficiaries’ activities after the project completion.
106