Approved by the Global Environment Facility (GEF) for an allocation of $6,2 million, this project is being implemented by Slovenia’s Ministry of Environment and Physical Planning and the World Bank.

In 1993 Slovenia imported from the European Union and used about 1,923 metric tons of ozone-depleting substances, chiefly in the aerosol, foam, solvent, and refrigerant sectors. Some 38 percent of those substances were used and exported. As outside markets started pressuring for phasing out ozone-depleting substances as a result of the Montreal Protocol agreements, Slovenia become fully committed and actively planned to phase out its consumption of ozone-depleting substances by 1996. This program served as a basis for establishing government priorities and identifying key policy and regulatory measures required for a cost-effective phase-out that minimized disruptions to industrial sectors utilizing ozone-depleting substances.

The project, implemented by the Ministry of Environment and Physical Planning, assisted Slovenia in phasing out ozone-depleting substance (ODS) consumption in a cost-effective manner as mandated by the Montreal Protocol and its amendments and adjustments. This was done through a combination of investments and institutional strengthening. Specifically, the project assisted seven enterprises in the refrigerator, aerosol, pharmaceutical, building and dry cleaning sectors to convert to non-ozone-depleting substances, through the adoption of new, cost effective, CFC-free technology.

A project implementation unit, supported by a technical advisory group, was created within the Ministry to coordinate implementation of the project, oversee procurement and disbursement for the seven subprojects, and supervise project activities. The technical advisory group arranged for technical assistance and consultants to help implement the project and facilitate cooperation among government institutions and consumers of ozone-depleting substances.

Capacity building, trade, consumption and production patterns, investment

• This effort improved the capability of the Ministry of Environment and Physical Planning to manage and oversee the complete phase-out of ODS production in Slovenia.

• The investment projects contributed to significantly reducing internal demand for ODS, which might otherwise have been met by illegal imports.

• The project reduced the economic costs to the country of phasing out ozone-depleting substances by maximizing the useful life of equipment that previously relied on CFCs, while minimizing economic dislocation associated with the phase-out.

• On a broader level, this project had a major contribution to human health and the global environment by directly phasing out 345 metric tons of ODS per year and contributing to the phase-out of nearly 1,600 additional metric tons of ODS.

A key lesson learned was the need to update financial reviews of targeted enterprises to ensure their viability if there are delays in implementation. In this effort and others, delays resulted in needed adjustments to sub-project design and, in some cases, the choice of enterprises to be included in the project.

This and other similar ODS projects benefited from rotating workshops to share lessons and exchange information with other countries undertaking similar initiatives.

Hutton Archer
Global Environment Facility Secretariat
1818 H Street, NW
Washington, DC 20433 USA
Tel. (202) 4587117; Fax (202) 522 3240
Email: harcher@worldbank.org
Webpage: www.gefweb.org