July 2017

Frequently Asked Questions Regarding the

Kigali Amendment
To the Montreal Protocol

What is the Kigali Amendment?

An agreement to gradually phase down, or reduce, the amount of hydrofluorcarbon (HFC) compounds
consumed by 197 countries between 2019 and 2050. The Kigali Amendment was agreed to on October
15, 2016 at the 28th Meeting of the Parties to the Montreal Protocol. It goes into effect on January 1,
2019, if 20 parties have ratified, acceded or accepted the amendment by that date, or 90 days after the 20th
ratification is achieved.

The amendment prescribes an HFC consumption phasedown of 85% in developed countries (known in
the treaty as Article 2 parties) between 2019 and 2036. Developing countries (known in the treaty as
Article 5 parties) are prescribed an HFC phasedown of up to 85% between 2024 and 2047, with some
delayed implementation for a several A5 parties.

Additional details on the reduction steps to be followed and the baselines from which countries will begin
their reductions can be found in the attached chart.

What are HFCs?

HFCs are fluorine-based gases designed for use in a wide variety of applications, including air-
conditioners, refrigerators, foams, fire suppression systems, aerosol sprays and solvents. Those
applications have been critical to improving health, medical care, protection of human life and property
and lifestyle everywhere they have been used.

HFCs were developed as an alternative to chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons

(HCFCs), used in these applications, and were designed to have zero impact on the stratospheric ozone
layer while delivering excellent performance.

However, as climate science advanced, HFCs were determined to have a global warming effect and
efforts began to identify and transition to equally high-performing alternatives with much less impact on
both the climate and stratospheric ozone.

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What will be used instead of HFCs?

In the short-term there will be a variety of different alternatives with lower global warming potential
(GWP). These will include hydrofluoroolefins (HFOs), lower-GWP HFCs, blends, and non-fluorinated
chemicals, including carbon dioxide, ammonia and hydrocarbons. Eventually, the markets will refine the
range of alternatives used to those offering the best economic value, performance and safety. In some
applications this process is already underway.

It is important to note that the proposals that lead to the Kigali Agreement were first discussed in 2008.
The industry did not wait for the agreement, and has been developing alternatives and implementing them
in new products for a number of years already.

Is the Kigali Amendment going to interfere with my ability to buy products, like a new air-conditioner?

The amendment does not regulate products that rely on HFCs. Instead, it implements a reduction in
consumption of HFCs (defined as production +imports-exports) implemented at national level. For most
applications, there should not be an issue. Most industries around the world supported the adoption of the
amendment and with the long-term certainty provided by the amendment, companies should have the
time needed to adjust their designs to incorporate next generation compounds and get them to the market
in time for the transition.

Is the Kigali Amendment related to the Paris Agreement?

They are independent of each other. The Paris Agreement is voluntary and is about reducing emissions of
all greenhouse gases, but mainly CO2 and methane, with HFCs representing a small portion. In fact,
President Bush was one of the first to recommend that HFCs be managed under the Montreal Protocol
instead of including HFCs definitively in Climate Agreements.

The Kigali Amendment is exclusively focused on phasing down the production and consumption of HFCs
under the Montreal Protocol following successful implementation of the same framework to CFC and
HCFC phaseout worldwide, and it is legally binding.

Are reductions under the Kigali Amendment voluntary as with the Paris Agreement?

No, all Parties to the Kigali Amendment will be legally bound to comply with the reductions stipulated by
the amendment.

Will the Kigali Amendment affect all countries equally?

Once it comes into effect, all Parties to the amendment will need to comply with its provisions. The
amendment takes into consideration that some countries have unique challenges in implementing the
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transition from high-global warming HFCs. Developing countries will begin and end their phasedown
later than developed countries, for example, and even within each of those groups there has been further
segmentation among countries to promote compliance with the amendment.

Is the Kigali Amendment going to make it more expensive to buy appliances, like refrigerators, as
manufacturers will need to transition from high global warming HFCs?

The cost of low-GWP alternatives to high-GWP HFCs depends on a variety of factors, including
materials compatibility, engineering profile, toxicity and flammability. All of these factors influence the
cost of the new technologies, and in some cases costs may be reduced to consumers especially when
included added benefits of increased energy efficiency. It is therefore difficult to cite a precise cost for
the transition to low-GWP technologies.

While some alternatives to HFCs are more expensive currently, it is anticipated that the difference in
price will decrease over time. Furthermore, those added costs will be spread out so as to minimize the
impact on consumers. There will also be significant funding provided to developing countries to
implement this transition, which will further reduce any impact from the change felt by consumers in
those countries.

Further, the goal of the amendment, and the history of Montreal Protocol implementation, is to provide
long enough lead times to minimize the cost of introducing new technologies, e.g., while at the same time
responding to other regulatory or consumer requirements for greater energy efficiency performance, e.g.,
a typical air conditioning product design cycle could run 7-10 years, depending on the known availability
of the refrigerant to be utilized in the product. In the United States, energy efficiency standards’ revisions
have been occurring every 3-5 years.

What are the benefits of the Kigali Amendment?

For the global environment – a new generation of products with little to no direct global warming
potential. It is expected that implementation of the Kigali Amendment will avoid the equivalent of at
least 70 Gigatons of carbon dioxide by 2050, plus the equivalent of another 10 Gigatons of carbon
dioxide from the elimination of HFC-23 byproduct emissions.

For industry - certainty. Knowing what will be required in each region of the world over the next 30 years
will enable the investments necessary to implement new technologies. This includes also the creation of a
stable global HFC policy environment, a technology review process to ensure that the phase-down tracks
the development of new technologies to achieve its implementation, a financial mechanism to support
implementation, an increase in awareness of related energy efficiency considerations, a new effort to
harmonize standards and further support for the codes and standards updating process.

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How will the Kigali Agreement affect domestic policies to restrict HFCs which are already in effect or in
development?

It may vary by jurisdiction, but at the federal level in the US, the first two rules under the US EPA’s
Significant New Alternatives Policy (SNAP) program to change the status of certain HFCs for certain end
uses to unacceptable are expected to stay in place. It appears that the CO2 equivalent reductions from
those two rules will support the US compliance with the first two reduction steps (2019 and 2024).
Assuming entry into force and US ratification, it is expected that the US EPA would implement an HFC
allocation system from 2019 on and will utilize that system in conjunction with a limited reliance on
SNAP to achieve the reductions agreed upon in the Kigali Amendment in the same manner as the HCFC
phaseout.

Will the Kigali Amendment require US Senate ratification to come into effect in the US?

In the days following the approval of the amendment by parties, the US government officially stated that
it was reviewing the text of the amendment and “relevant practice” to better understand options for US
Senate ratification. It is now anticipated that the Trump administration would insist on Senate
ratification. The Alliance view is that the amendment is subject to Senate ratification. The previous four
Montreal Protocol amendments that were adopted by the Parties in the 1990s in London, Copenhagen,
Montreal and Beijing were all approved by the Senate, the latter two by voice vote.

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 The Kigali Amendment to the Montreal Protocol
A Global HFC Phase-down Agreement Reached by 197 Countries
In Kigali, Rwanda on October 15, 2016

120
2024 2028 Baselines
A2 Countries (US, Canada, etc.) – Avg. HFC
Freeze Freeze Consumption 2011-2013 + 15% HCFC
baseline
A2 Countries (Belarus, etc.) - Avg. HFC
100 Consumption 2011-2013 + 25% HCFC
baseline
A5 Countries (Group 1)- Avg. HFC
Consumption 2020-2022 + 65% HCFC
baseline
A5 Countries (Group 2)- Avg. HFC
80 Consumption 2024-2026 + 65% HCFC
baseline
A2 Countries
(US, Canada, etc.)
60
A5
Countries
Group 1
40
A2 Countries
A5 Countries Group 2
(Belarus, Russian Federation,
(India, Iran, Pakistan, Iraq,
Kazakhstan, Tajikistan,
GCC)
Uzbekistan)
20

GWP Weighted Cap (% of Baseline)

0
2010 2015 2020 2025 2030 2035 2040 2045 2050 2055