THE Environmental Investigation Agency (EIA) is calling on the UN to end emission offset credits for destroying the high GWP gas HFC23, a by-product in the manufacture of the refrigerant R22.
On the eve of an expected decision by the UN's Clean Development Mechanism (CDM) on HFC-23 methodology, EIA is calling for the methodology to be retired and current contracts for HFC-23 destruction not renewed.

Earlier this year Europe voted to ban the credits after it was widely recognised that the system perversely encouraged developing countries to over-produce R22 in order to cash in on credits available for destroying the high GWP by-product HFC23.

Since 2005, Kyoto signatories are said to have spent several billion euros to obtain about 260 million carbon credits for offsets resulting from HFC23 destruction projects, mostly in China and India.

'Rather than being converted to carbon credits, the minimal cost of destroying HFC23 should be borne by producers,' said Mark Roberts, international policy advisor for the EIA. 'Just as HCFC22 producers in developed nations bear the cost for HFC23 destruction, so should China and India, especially as they have already been paid many times over what it will cost to destroy all HFC23 for decades to come.'

According to the EIA, Indian fluorocarbon companies have reported that HFC23 credits comprise up to 88% of their annual profits. The group also claims that the Chinese government, which levies a 65% tax on all HFC23 credits, claims to be sitting on US$700m from HFC23 offsets, enough to capture and destroy all HFC23 produced in China until 2050.

'By banning the use of HFC23 credits after April 2013, the European Union has already demonstrated that these industrial gas offsets have no place in future international carbon markets', said Clare Perry, EIA senior campaigner. 'Destroying HFC-23 should be obligatory as part of responsible business practice by all HCFC22 producers.'