Implementing Agency:
Department For International Development (DFIDI)

Managing Institute:
Department For International Development (BDCOD)

Contractor:
Touche Ross & Co

Cremer & Warner Ltd

S B Billimoria & Co

Project Code: 149-516-003	Start Date: 01/01/1990	End Date: 31/10/1990
Commitment: £325,521	Status: Completed	Type of Funding: Bilateral - TC

Project Background:
The Montreal Protocol requires countries which are parties to it to reduce their consumption of ozone depleting substances (ODS) by conforming with limits defined in the protocol. It is expected that, at a meeitng of the parties to be held in London in June 1990, the protocol will be amended to require the complete phase-out of the consumption of most ODS.

The protocol includes provisions for technology transfer and for international financing mechanisms under which India and other developing countries could be assisted to affect the transition from ODS to substitutes.

India has not signed and ratified the protocol, and is therefore not a party to it. India is not currently attempting to limit or reduce production and consumption of ODS. Indeed, Indian chemical companies have recently made significant investment in production capacity for ODS which are enjoying strong growth in demand, as the consumer demand grows for products containing and made with ODS.

This study considers the techncial feaibility of India substituting for ODS, the economic costs of achieving substitution, and the measures necessary to implement the phase-out. In carrying out the study, we have assumed that, if India becomes a party to the protocol, it will comply with the phase-out provisions as these apply to developing countries.

Project Objectives:
To facilitate the identification and costing of a programme of action for transition by India to substitutes for ozone depleting substances.

Intended Outputs:
The study was carried out in two phases, with the following intended outputs:

Phase 1:

An analysis, by sector,of demand for ozone depleting substances (ODS) in India to the year 2010, based on the survey of demand to 1996 carried out by S B Billimoria & Co (SBB), a firm of Indian management consultants, for the Ministry of Environment and Forests (MOEF) of the Government of India.

An estimate of the limits to the consumption of ODS in India (expressed in Ozone Depletion Potential (ODP) units) permitted under the expected amendments to the Montreal Protocol in June 1990, as advised by the MOEF.

A technical assessment of the most appropriate substitute substances and alternative technologies India could use to replace ODS.

An assessment of each user and production sector, and for consumers, the first order costs of reducing consumption of ODS in line with the Protocol as it is expected to be amended.

As far as possible within the timeframe for Phase 1, an order of magnitude assessment of the total first order economic costs to India of conforming with the expected Protocol amendments, distinguishing between once-off and on-going costs and between replacement and additional capacity requirements.

Phase 2:

A review (and where necessary and possible, a refinement) of the economic assessment carried out in Phase 1.

Strategies identified for a transition programme in India in line with the timetable expected to be included in the amended Protocol.

Mechanisms appropriate for implementation (eg subsidies, fiscal measures, regulation, enforcement) identified and identification of where the burden of cost will fall.

Financing arrangements that could support such programmes explored.