Carbon Trading Imperils the Climate Protection Legacy and Ambitions of the Montreal Protocol

The Montreal Protocol on Substances that Deplete the Ozone Layer is often referred to as the world’s most successful environmental treaty, having phased out more than 99 per cent of the production of ozone-depleting substances (ODS), setting the ozone layer on the path to recovery, and avoiding as much as 2.5°C warming by the end of the century.

EIA is therefore concerned that discussions on funding models for activities related to ODS and hydrofluorocarbon (HFC) management and destruction are focusing primarily on carbon trading and the sale of carbon offset credits, which are essentially permissions to pollute.

In this briefing, EIA looks at how carbon trading schemes operate and how they are applied – or are proposed to apply – to ODS and HFC management and destruction, along with some of the many problems that can arise from an offsetting, carbon credits-based approach. We discuss various more cost-effective, efficient and environmentally sound alternatives for addressing ODS and HFCs, including a global management framework – supported by a sustainable finance mechanism – which does not involve trading in these pollution permits.