UNEP/OzL.Pro.13/CRP.xx

UNITED NATIONS
ENVIRONMENT
PROGRAMME / UNEP/OzL.Pro.13/CRP.4
16 October 2001
ORIGINAL: ENGLISH

THIRTEENTH MEETING OF THE PARTIES TO

THE MONTREAL PROTOCOL ON

SUBSTANCES THAT DEPLETE THE

OZONE LAYER

Colombo, 16-19 October 2001

Draft Decision: Clarification of the term “industrial rationalization”Decision
Proposal submitted by India
Decision XXX: Clarification of the term “industrial rationalization”

Noting that the term “industrial rationalization” as defined under paragraph 8 of Article 1 of the Montreal Protocol means the transfer of all or a portion of the calculated level of production of controlled substances of one Party to another,

Noting further that the terms “industrial consolidation” and “industrial rationalization” have also been used in some decisions relating to the consumption sector and do not carry the same meaning as that defined in paragraph 8 of Article 1 of the Protocol, but carry the common commercial meaning which is: voluntary amalgamation of two or more independent legal corporate entities for purposes of economies of scale.

The Thirteenth Meeting of the Parties decides:

  1. To clarify that, whilst taking decisions on Action 11 of Annex V to Decision VII/22 and under Annex VIII to Decision IV/18 concerning the indicative list of categories of incremental costs, the Executive Committee shall ensure that their decisions concerning “industrial rationalization” for both consumption and production sectors should not result in the de-industrialization or reduction in installed manufacturing capacity for the goods in the relevant Article 5 Party. The Executive Committee shall approve projects for funding of incremental costs of plant closure/conversion of equivalent installed capacity of product manufacturing facilities or existing installed equipment, and the funding of the incremental cost is not to be restricted to the incremental cost for closure/conversion of the existing operating production capacity at the time of submission of the project proposal.
  1. To request the Executive Committee to review all the decisions made by it up to date and modify them if they are not in line with this decision.

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