Hydrochlorofluorocarbons (HCFCs) are chemical compounds commonly used in the foam, refrigeration, and air conditioning sectors that destroy the protective ozone layer and contribute to climate change. It is essential to reduce and phase out the use of HCFCs in industry practices. Currently, the most common alternatives to HCFCs are hydrofluorocarbons, (HFCs), which are non-ozone depleting substances (ODS), but still have high Global Warming Potential (GWP). UNIDO and the Montreal Protocol are working to avoid the use of these HCFs as transitional substances and instead work towards finding long-term low-GWP solutions.

These activities are supplemented with projects to improve the energy efficiency of the products manufactured, since in some developing countries, air conditioning has a share of more than 40 percent of the electrical power consumption.

The organization has been mapping out and implementing activities on how the consumption freeze and 10 percent reduction of HCFCs by 2013 and 2015 called for by the Montreal Protocol are to be achieved. Most countries have targeted their foam manufacturing sector or individual foam production lines in the refrigeration manufacturing sector. To complement these plans, individual investment projects for the conversion of production lines have also been developed in the manufacturing sectors.