ECC imposes immediate ban on ozone-depleting insulation materials

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet, led by Finance Minister Muhammad Aurangzeb, has enacted an immediate ban on ozone-depleting insulation and foaming materials that incorporate polyol blended with hydrochlorofluorocarbons (HCFC-141b and HCFC-142b), citing environmental concerns.

The ban, effective at the end of January, prohibits the opening of new letters of credit (LCs) for these materials and mandates the completion of legal and procedural actions within a two-week timeframe.

The commerce ministry presented a summary to the ECC, emphasizing the environmental risks associated with HCFC-blended polyol, commonly used in refrigeration, insulation, and foaming applications.

The committee noted that many countries had already banned these substances decades ago and that alternative eco-friendly options are widely available in the global market. It was also highlighted that domestic industries have largely shifted to these alternatives, ensuring that disruptions will be minimal.

Additionally, the ECC instructed the Ministry of Climate Change to work alongside the Ministry of Industries to provide sufficient notice to affected industries.

In the same meeting, the ECC reaffirmed its prior decision from August 15, 2024, to grant industry status to the warehousing and logistics sector. The finance minister expressed disappointment over the lack of progress in implementing this earlier decision, which has been pending for nearly five months. Stressing the necessity for timely action, he directed all participants to prioritize transparency and efficiency in policy execution.