E.I. DuPont Canada Company on production of HCFCs: Environmental agreement overview

Note: This Agreement is no longer in efffect.

This Environmental Performance Agreement (the Agreement) was signed on January 26, 2010 and was terminated on December 29, 2016. The Agreement successfully met its objective to keep its annual production levels of hydrochlorofluorocarbons (HCFCs) below the threshold specified in the Agreement. Production of HCFC is now regulated under the Ozone-depleting Substances and Halocarbon Alternatives Regulations (ODSHAR), which came into force on December 29, 2016. Consequently, this Agreement is no longer required.

Objective

The objective of this Agreement was to set environmental performance objectives for the production of HCFCs in Canada, in support of the Montreal Protocol respecting ozone-depleting substances.

Signatories

This Agreement had been negotiated between Environment and Climate Change Canada and E.I. DuPont Canada Company (DuPont). In 2014, Environment and Climate Change Canada received notice that DuPont Canada would no longer be involved with the manufacture of HCFCs, which had been taken over by The Chemours Canada Company (Chemours). Although not a signatory of the Agreement, Chemours continued to comply with the provisions of the Agreement, including the submittal of the annual reports to Environment and Climate Change Canada until the coming into force of the ODSHAR.

Key requirements

As a result of this Agreement, DuPont agreed that:

  • Its annual production level of HCFCs in Canada would not exceed 122.9 ozone-depleting potential tonnes, which represents 15% of Canada's Baseline Production Level, by January 1, 2010. This is well below the production limit required by the Montreal Protocol for 2010, which is 205 ODP-tonnes (or 25% of Canada's Baseline Production Level).
  • In addition to meeting any applicable reporting requirements under the Ozone-depleting Substances Regulations, 1998 (ODSR 1998), DuPont was to complete and submit to Environment and Climate Change Canada by January 30th of each year, starting in 2011, the reporting form in Appendix 2 of this Agreement concerning its annual HCFCs production level in Canada.

Performance results

Environment and Climate Change Canada received DuPont's/Chemours' reports on HCFCs production for the years 2010 to 2016. The production data in the report was checked against the data in DuPont's/Chemours' annual report for the ODSR 1998. DuPont's/Chemours' production level of HCFCs in Canada was in line with the performance agreement objective, which was not to exceed 122.9 ozone-depleting potential tonnes. Canada was in compliance with its obligations under the Montreal Protocol for its production of HCFCs during this period.

Next steps

The provisions of this Agreement on the production of HCFC have been replaced by those in the ODSHAR, which controls the production of HCFCs in accordance with the requirements of the Montreal Protocol.

Background information

HCFCs were originally developed in the 1950s as refrigerants for air conditioning. In the 1990s, a number of these substances became the first major replacements for chlorofluorocarbons (CFCs) that were phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol) due to their ozone-depleting properties. HCFCs have also been found to contribute to ozone depletion.

The Montreal Protocol was adopted in September 1987 in an effort to address the damage done by ozone-depleting substances. As one of the early signatories to the Protocol, Canada has made significant progress in reducing the emissions of ozone-depleting substances through control measures implemented by all levels of governments, changes in technologies and voluntary actions by industry.

The most significant commitments in the Montreal Protocol are the schedules for phasing-out ozone-depleting substances. At the 19th meeting of the Montreal Protocol in September 2007, Parties agreed to introduce a production phase-out schedule for HCFCs. The production phase-out schedule began January 1, 2010. Under the Montreal Protocol, Canada's HCFC production limit for the period 2010 to 2014 was 205 ozone-depleting potential tonnes, which is 25% of Canada's Baseline Production Level.

Canada implemented its obligations under the Montreal Protocol through the Ozone-Depleting Substances Regulations, 1998 until December 2016 when these Regulations were repealed and replaced with the ODSHAR. The ODSHAR include HCFC production limits and continues to implement Canada's obligations under the Montreal Protocol.

This performance agreement was a precautionary measure until the ODSHAR came into effect, to ensure that Canada achieved its production phase-out obligations under the Montreal Protocol starting in 2010.

The Chemours Canada Company, a spin-off from E.I. DuPont Canada Company who was the signatory to the Agreement, is the sole Canadian manufacturer of HCFCs. This Agreement was drafted in recognition of DuPont's/Chemours' commitment to limit its production of HCFCs to no more than 15% of Canada's baseline production level.

Responses to comments

The draft Agreement was posted on Environment and Climate Change Canada's Performance Agreements website for a 30-day public consultation period, between October 30 and November 30, 2009. No comments were submitted during the public consultation period and no changes were made to the draft Agreement following consultation.

Resources and links

Contact Environment and Climate Change Canada

For inquiries regarding this Agreement, please contact:

Chemicals Production Division
Telephone: 819-938-4228
Email: ec.gestionhalocarbures-halocarbonsmanagement.ec@canada.ca

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