By Hoem Seiha
The Economics Today
The advancement of sciences and technologies has eased the way of lives to humans on earth. Technologies of refrigeration and air-conditioning, for instance, have comforted many peoples in the world with air-conditioned, friendly atmospheres. They enjoy and live comfortable lives as much as these technologies can offer.
However, these technologies have adverse effects to both the environment and humans. Chemical substances, for example, such as chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) used to cool the air in buildings, offices and enclosed spaces, just to name a few, potentially deplete ozone layer, allowing great amount of UV to reach the earth’s surface and causing global warming as well as skin cancer, eye cataracts and damage to people's immune systems, according to ‘Environmental Effects of Ozone Depletion: 1998 Assessment’ by UNEP. It also diminishes the productivity of food crops and reduces levels of plankton in the ocean. For obvious instance, according to American Cancer Society, there are more than 1 million new cases and 11,590 deaths of skin caner each year in the US due to unprotected or excessive exposure to ultraviolet (UV) radiation. This leads to a considerable concern of the world especially Montreal Protocol over the environmental issue.
Course of Actions: Cambodia
According to Multilateral Fund for the Implementation of Montreal Protocol, Montreal Protocol was ratified in 1987 to control the production and consumption of ozone-depleting substances (ODS) by phasing out step by step ODS such as CFCs and HCFCs. Cambodia, among other countries in the world, acceded to Montreal Protocol in 27 June, 2001.
With the obligation to Montreal Phase-out schedule, Cambodia has complied with the schedule to phase out CFCs as have other developing countries. Cambodia HPMP 1st Draft states that the data survey conducted in 2003 revealed that Cambodia consumed about 87 ODP (ozone-depleting potential) tones of CFC-12, most of which contributed to servicing activities. In 2008, the consumption dropped considerably to 1.4 ODP and is expected that Cambodia is able to achieve the 2009 targets and final phase-out in 2010 without any problem.
As CFCs are classified by The Center for International Earth Science Information Network (CIESIN) to have greater potential for ozone depletion, HCFCs have less potential for ozone depletion than do CFCs. Therefore, HCFCs are the transitional alternative to CFCs, yet not the final solution. After 100% reduction of CFCs by 2010, according to Cambodia HPMP 1st Draft, HCFC phase-out will be subsequently implemented by Cambodia by the second haft of 2010 and is to meet the freeze in 2013, 10% reduction in 2015, and final 100% reduction in 2040.
The consumption of HCFCs in Cambodia is only in the installations and servicing of refrigeration and air-conditioning equipments. Regarding the consumption of HCFCs, Cambodia HPMP 1st Draft indicates that the forecast of HCFC use from 2009-15 based on trend of consumption during 2003-2008 will reach 15.7 ODP tons by 2015. Compared to global consumption by 2015, the total HCFCs to be consumed worldwide will reach 50,000 ODP tons, and Dr. Rajendra Shende, Head OzonAction of United Nations Environment Programme informs Economics Today via E-mail on 25 March that most of the consumption has been and will still be demanded by China and India.
Ozone Depletion Process and Possible Solution
Cumulative substances of the ODS such as CFCs and HCFCs accelerate the damage to ozone layer. According to Chemists Frank Sherwood Rowland and Mario Molina at University of California, Irvine, it is calculated that a CFC molecule takes an average of 15 years to go from the ground level up to the upper atmosphere, and it can stay there for about a century, destroying up to one hundred thousand ozone molecules during that time. As a result, when hundred thousands of chlorine molecules—a composition of CFCs and HCFCs—are being released to the upper atmosphere, then billions of ozone molecules will be destroyed.
Because these chemical compounds such as CFCs and HCFCs are very harmful to the ozone layer, scientists and ICF International suggest an alternative to these convenient but harmful chemical compounds. Current alternative is HFCs. Since these compounds contain no chlorine which potentially depletes ozone, they are perhaps the second generation replacement of CFCs and HCFCs. The suggested chemical compounds, though not depleting ozone, speed up global warming. However, according to the “UNEP/WMO Scientific Assessment of Ozone Depletion: 2006”, scientists suggest that ozone will recover itself to original state, though very slowly, thanks to the decline in ODS under the control of Montreal Protocol.
HCFC Phase-out Management Plan (HPMP) for Cambodia
Among over 140 countries to be assisted by Multilateral Fund, Cambodia has acceded to Montreal Protocol and is obliged to comply with Montreal Protocol to phase-out CFCs and HCFCs as listed in Montreal’s Phase-out schedule.
According to Cambodia HPMP 1st Draft, Cambodia has set out strategies for the Phase-out: (1) limit the supply of HCFCs, (2) reduce demand for HCFCs for existing servicing equipments, and (3) limit new demand for HCFCs.
1. Limit the supply of HCFCs
To limit the supply of HCFCs, Cambodia will put several activities into implementation. Primarily, banning on the import of never used HCFCs will be taken into action. Cambodia uses only HCFC-22, HCFC-123, and HCFC 141b, so other compounds of HCFCs will be banned. Second, Cambodia will introduce HCFC import quota, starting in 2012 in order to prevent the HCFC consumption from rising too high. Third, training of customs officers will be implemented. The proposed training will focus on HCFCs and HCFC-based equipments. Fourth, labeling of HCFC containers will be implemented before each product of HCFCs is released to the market. Fifth, registration of ODS refrigerants for retailers would be required in order to control ODS supply. Sixth, economic disincentive on HCFC import will be introduced so as to discourage the import of HCFCs.
2. Reduce demand for HCFCs for existing servicing equipments
The use of HCFCs to service air conditioning equipments is approximately 83% of the total consumption in 2008. To reduce demand for HCFCs for existing servicing equipments, Cambodia will implement all the activities as following. First, it would be required that all servicing workshops be registered in order that NOU (National Ozone Unit) can take control over ODS being used responsibly by servicing workshops. Second, refrigeration technicians will be required to be certified before they are allowed to handle or service RAC (Refrigeration and Air-Conditioning) equipments. Third, training of refrigeration technician on good practice will be needed on the purpose of building capacity. Fourth, investment component to support good servicing practice will be needed to properly recover and recycle HCFCs. Fifth, retrofitting program will be piloted to replace HCFC refrigerants with alternatives under testing condition of local climate conditions.
3. Limit new demand for HCFCs
To limit new demand for HCFCs poses a number of challenges because new alternative refrigerants could be more expensive and not yet widely available on the market. This would be required that government actions also promote the adoption of new alternative technology. First, import of HCFC-based RAC equipments will be limited starting in 2015 so that future demand for HCFC-22 to service new RAC equipments will be curtailed. Second, economic disincentives for HCFC-based RAC equipments will be introduced in 2015 after the consultation between Ministry of Commerce and General Department of Customs and Excise, because the price of HCFC-free RAC equipments is much higher than that of HCFC-based equipments. Third, installation of large HCFC-22-dependent RAC equipments will be banned starting in 2015. Fourth, NOU will introduce two types of labels: HCFC warning label and HCFC-free label. This aims at educating consumers on environmental impacts of the equipments before making purchasing decision. Fifth, energy efficiency labeling for RAC equipments will be introduced. That is, any substitutes and alternatives should be efficient and have minimum impacts on the environment, including climate change, taking into account global warming potential and other relevant factors. Sixth, refrigeration technicians will be trained on alternative refrigerants so that they can install new equipments without any undesirable experience. Seventh, investment components are needed to provide servicing tools. For example, alternative refrigerants have different design and operating conditions; therefore servicing workshops would require new set of tools designed specially for these refrigerants.
Impacts on Economy
Many or few, side effects involve every single action. ‘No pain, no gain.’ This is often spoken and written as a catchy slogan. Since the chemical compounds such as CFCs and HCFCs have been produced and consumed in a wide range of CFC/HCFC-based refrigerants and air-conditionings, the phasing-out of these chemical compounds poses a great deal of challenges to the world, especially developing countries like Cambodia. One of the challenges Cambodia may face is that the phasing-out of these chemicals impacts on the economy of RAC servicing workshops, businesses (RAC consumers) and technicians.
RAC servicing workshops and technicians are the first to be economically impacted by the regulation of HCFC phase-out plan. Most of the workshops offer new installations of HCFC-based RAC each year. Cambodia HPMP 1st Draft indicates that total installations of HCFC-based air-conditioners are forecasted to be 762,083 in 2015 based on 416,493 in 2009. Therefore, the phase-out of HCFCs, though gradual, causes difficulties adopting new technologies of ODS-free. Technicians also face problems with new technologies, which prompt them to be inconveniently trained on new products and servicing. Mr. Chea Leapphy, an operation supervisor of Comin Khmere Co.Ltd., said on telephone, ‘large RAC servicing workshops will be impacted very less, but more impacted will be those RAC servicing companies that have imported HCFC-based equipments and these gases yet unable to sell out in time before HCFCs are banned.’
A great number of businesses will be affected by the regulation. Since those businesses, especially with large office buildings, hotels and restaurants, hospitals, supermarkets, schools, and factories are currently using HCFC-based RAC equipments, the freeze on the use of HCFCs in 2003 will cause inconvenience of reinstallations, recycling and recovering, and financial problems. Mr. Chea Leapphy, an operation supervisor of Comin Khmere Co.Ltd., told Economics Today by telephone that under some circumstances the phasing-out will affect especially consumers who are using HCFC-based equipments.
However, Multilateral Fund for the Implementation of the Montreal Protocol assists developing countries like Cambodia in complying control measures of Montreal Protocol to phase out HCFCs. Funds are subsidized for the phase-out projects, but according to Cambodia HPMP 1st Draft, Cambodia does not have any Multilateral Fund CFC projects that have been replaced with HCFCs.
Both of our environment and economy are important. Moreover, it is obligatory that all nations save the earth by protecting ozone layer from being depleted by ODS. At National Consultation Workshop on HCFC Phase-out Management Plan of Cambodia conducted at Raffle Le Royal Hotel, Khieu Muth, secretary of state at Ministry of Environment said, ‘The phase-out plan of HCFCs should have no impacts on our economy and should as well mitigate as much as possible the effects on our environment.’
