Case Study 23
CFC-free Refrigerators in Thailand
Yuichi Fujimoto, JICOP, Japan
Stephen Andersen, U.S. EPA, Washington DC, USA
Keywords: Japan, USA, Thailand, N
S, technology transfer, CFC-free refrigerators, ODS phaseout, HFC-134a
Summary
This case study is for the industrial sector and the stakeholders are Government
of Thailand, Hitachi, Matsushita, Mitsubishi Electric, Toshiba of Japan, and
the Japan Electrical Manufacturers Association (JEMA). The government of Thailand
and the multinational companies decided to speed the phase-out of ozone depleting
substances (ODSs) through a voluntary pledge. The technical challenge of achieving
this environmental objective for the manufacture of ODS-free domestic refrigerators
required an unprecedented degree of technical cooperation between fierce competitors
in Thailand and Japan.
The CFCs were phased out under the Montreal Protocol by using HFCs, which are
regulated under the Kyoto Protocol. HFCs have much lower GWP as compared to
CFCs. The lesson learned from this technology transfer may be useful for similar
transfer under Climate Change Convention.
Background
In a 1990 seminar conducted for the Association of South-East Asian Nations
(ASEAN), it was reported that electronics and refrigerator enterprises from
Japan, the United States and Europe were primarily responsible for dramatic
rates of increase in CFC consumption in Thailand. This case study considers
the technology cooperation undertaken to halt the use of CFCs in refrigerators.
Seven Japanese companies and their joint ventures in Thailand produced household
refrigerators in Thailand. Three of these companies imported all the critical
parts necessary to complete the phaseout but the other four companies used compressors
supplied by a single Thai company. It was therefore crucial that the Thai compressor
manufacturer redesign their products to use CFC alternatives, and that they
manufacture reliable compressors.
Approach
The government of Thailand announced its target date for eliminating CFCs from
Thai household refrigerators as the end of 1996. This phaseout date for CFCs
used as the refrigerant and as the blowing agent for insulating foam in domestic
refrigerators was particularly aggressive. The first option was to keep to the
phaseout schedule by getting compressors from manufacturers other than the local
companies. This option was rejected because Japanese companies had pledged to
help Thailand to build local manufacturing capability. The second option was
to postpone the phaseout and wait for a supply of reliable compressors from
the local companies. This option was also rejected, because the Thai government
was eager to keep the phase-out on schedule. The only other option required
additional technology cooperation with the local compressor company. The refrigerator
parent companies that were buying compressors in Thailand, i.e. Hitachi, Matsushita,
Mitsubishi Electric, Toshiba of Japan, and the Japan Electrical Manufacturers
Association (JEMA) launched a voluntary emergency joint project to assist the
local companies to improve reliability and to help with its implementation.
The U.S. Environmental Protection Agency attended follow-up meetings in Thailand
and encouraged the Thai compressor manufacturers' parent companies in the United
States to promote their participation in the technical support project.
Impacts
As a result of the corporate leadership by multinational companies, ambitious
goals were announced that ultimately required unprecedented technical cooperation
to achieve. The seven Japanese refrigerator companies and their joint ventures
all achieved the complete CFC phaseout by the end of 1996, the first phaseout
of CFCs used in domestic refrigerators by any developing country in the world.
Because the Thai Government realised the importance of phasing out of CFCs,
they took measures to prohibit the manufacture or import of foreign CFC-based
refrigerators after 1996. This leadership action and support by the Thai government
encouraged the Thai refrigerator manufacturers to work hard to achieve the CFC
phaseout. It also created a strong motivation to phase out CFCs in refrigerators
manufactured in other developing countries. It is worth noting that the Japanese
companies, which helped the Thai companies in developing HFC-134a compressors,
were in direct competition to supply the other three refrigerator manufacturers
in Thailand.
Lessons Learned
There are three crucial aspects to the successful achievement of global environmental
objectives: global leadership and commitment to cooperation for global environmental
protection, an early action plan from industry, and cooperation between government
and industry.
This extraordinary technical cooperation can only be replicated when all of
these aspects can be orchestrated and when there is a strong commitment from
corporate management and national governments.
Bibliography
Japan Industrial Conference for Ozone Layer Protection (JICOP): Guide (9909-1500).
Le Prestre, P.G., J.D. Reid, and E. Thomas Morehouse (eds.), 1998: Protecting
the Ozone Layer: Lessons, Models and Prospects. E Kluwer Publishers, Dordrecht.
UNEP, 1995: 1994 Report of the Technology and Economic Assessment Panel; 1995
Assessment, United Nations Environment Programme.
UNEP, 1999: The Implications to the Montreal Protocol of the Inclusion of HFCs
and PFCs in the Kyoto Protocol. HFC and PFC Task Force of the Technology and
Economic Assessment Panel (October).
U.S. EPA Office of Air and Radiation (6205J), 1997: Champions of the World:
Stratospheric Ozone Protection Ozone Protection Awards (August), EPA 430-R-97-023
U.S. EPA Office of Air and Radiation (6205J), 1998: Newest Champions of the
World: Winners of the 1997 Stratospheric Ozone Protection Awards (February),
EPA 430-K-98-003.
Contacts:
Stephen O. Andersen
U.S. EPA
Director of Strategic Climate Projects
401 M Street SW (6202J)
Washington, DC 20460
Phone: (202) 564-9069
Fax: (202) 565-2135
E-mail: andersen.stephen>@epa.gov
Mr. Yuichi Fujimoto
Advisor
Japan Industrial Conference for Ozone Layer Protection (JICOP)
Hongo-Wakai Bldg.
2-40-17, Hongo
Bunkyo-ku
Tokyo 113-0033
Japan
Phone: (813) 5689-7981 or 7982
Fax: (813) 5689-7983
E-mail: jicop>@nisiq.net
Mr. Thanavat Junchaya
Regional Network Coordinator of OzonAction Programme, Bangkok
United Nations Environment Programme
Regional Office for Asia and the Pacific
United Nations Building, Rajadamnern Avenue,
Bangkok 10200, Thailand
Phone: 662-2881870, 2881234
Fax: 662-2803829
e-mail: junchaya.unescap>@un.org
Mr. Wiraphon Rajadanuraks
Director
Hazardous Substances Control Bureau
Department of Industrial Works
75/6 Rama 6 Road
Bangkok 10400
Thailand
Phone: (662) 202-4201
Fax: (662) 202-4015
E-mail: hazard>@narai.diw.go.th
Mr. Viraj Vithoontien
Montreal Protocol Environmental Specialist
World Bank
1818 H Street, NW
Washington, DC 20433
Phone: (202) 458-1913
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