Sustainable Management of Substances Controlled by the Montreal Protocol

pipeline

The SMS-MP Project aims to reduce hydrofluorocarbon (HFC) and hydrochlorofluorocarbon (HCFC) consumption to support Viet Nam’s compliance with its Montreal Protocol (MP) phasedown and phaseout obligations between 2024 and 2030. Given that both HFCs and HCFCs are potent greenhouse gases (GHGs), the project will make a significant contribution to Viet Nam's and global climate mitigation efforts with annual avoided emissions of more than 6 million tCO2eq starting in 2030. The project will comprise two national plans that were approved under the MP's financial mechanism, the Multilateral Fund (MLF) in December 2023: 1) The Stage I Kigali Implementation Plan (KIP), which is the first plan to address the import and use of HFCs (non-ozone depleting, short-lived climate pollutants), focuses on the servicing sector and a demonstration activity to design lower-global warming train mobile AC, HFC management support, and technical assistance (TA); and, 2) The Stage III HCFC Phaseout Management Plan (HPMP), which is a continuation and the last of two previous HPMPs implemented, will lead to the near, total phaseout of HCFCs by 2030 and is entirely centered on Viet Nam's HCFC-consuming servicing sector as well as HCFC management support and TA. (UNEP is providing Viet Nam complementary MLF support in the HFC servicing sector (training and workshops) under the KIP.) The project is consequently structured to include a component on HFC consumption reductions, a second component on HCFC consumption reductions, and a third component for project management. The proposed project will be the Bank's fourth consecutive investment project financing (IPF) on the phase out of MP controlled substances prepared with and implemented by Viet Nam's Ministry of Agriculture and Environment (MAE, formerly, MONRE), the official focal point for fulfilling national obligations as a party to the ozone and climate treaties.