India does U-turn after deal with US on climate threatening refrigerant gases, HFCs

Following the agreement between the US and India during Prime Minister Narendra Modi’s visit to that country, India has officially reversed its long-standing position to permit phase out of climate-warming refrigerant gases under the Montreal Protocol.

India has formally moved an amendment to the Montreal Protocol, originally meant to help countries move away from ozone depleting substances, to now also deal with the phase-out of this family of climate warming refrigerant gases – Hydrofluorocarbons or HFCs. This is a complete U-turn in India’s stance. The government had earlier internally assessed that such a move was inimical to the country’s economic interests, as well as its stake in the UN climate convention negotiations.

The early signs of an impending U-turn had become evident when the two heads of states, in their joint statements during the PM’s visit to the US, announced India would work to assess how a phase-down of HFCs could be achieved under the Montreal Protocol. Before this, India had drawn a red line on the matter or in other words decided that it would be a non-negotiable issue in the international environmental negotiations under different forums.

These gases are used in all kinds of refrigeration systems, from cold chains to cars. While developed countries have adopted these gases and the attendant technology, it was highlighted that these hold a high global warming potential and India and China are the growing market for these. Many developed countries and others pushed that India and China leapfrog from the use of HFCs and use the next generation of refrigerant gases that do not cause as much global warming.

An internal environment ministry assessment of 2013 had noted the refrigeration industry was growing at a compounded annual rate of about 10 per cent and could take a Rs 90,000-crore hit over years if India agrees to a transition as asked by the US.

US negotiators had played hardball with Indian negotiating teams over several rounds last year, warning  the entire agreement on energy issues hinged on India also agreeing to change its stance on the concern of HFC phase out   (https://www.business-standard.com/article/economy-policy/us-wants-to-link-power-pacts-with-climate-change-agreement-114080100169_1.html).  India had earlier contended that some of the alternative technologies were held under costly patents by a few companies, some  based in the US. Some of these, the Indian government had assessed, could cost 20 times more than HFCs. They also contended that some of the replacement gases and technologies had not been tested for safety.

The US president has had this issue high on the agenda as part of his global climate diplomacy. His senior officials have repeatedly pushed for a deal on it with Indian negotiators during the United Progressive Alliance and the current National Democratic Alliance governments. The issue sits well with the US President’s climate agenda, as it delivers climate action in emerging economies giving breathing space to the developed economies, to reduce the more trenchant and costly carbon di-oxide emission from their industries.

India had blocked the move, noting global warming gases were dealt under the UN climate convention, where India would be able to get the full costs of transition to alternatives if it agreed to under the 2015 Paris agreement. It also had assessed internally that permitting one of the elements of the UN climate convention to leak out to another multilateral forum where full costs are not committed would give away a negotiating card in India’s hand.

Considering this, the government has decided that such a pact on HFCs should not be signed outside the Paris climate deal which is to be stitched by the end of 2015. This would give the Indian refrigeration industry time to assess the costs and help retain India’s stance on dealing with all climate-related issues under a more equitable UN climate convention.  

“In its submission to the Montreal Protocol, India has demanded that the full costs of the technology transition be provided and a long timeframe be given for the transition, but these would now be subject to negotiations under the protocol. We are hopeful these terms would be agreed to,” an official of the environment ministry said.

The protocol operates under the umbrella, Vienna Convention for the Protection of the Ozone layer, which, too, some experts have noted, will now need an amendment that could take more time. “But, yes, we have somewhat de-linked the issue of HFC gases from negotiations at the UN Framework Convention on Climate Change, which will produce an outcome only by December 2015,” he added.

Several environmental groups in India and abroad had advocated India change its stance on the issue and let the transition of technology be dealt with under the Montreal Protocol, though on terms more favourable to the country.