There is controversy that HFC 23 is being overproduced as as per AM0001 approved methodology of the CDM mechanism HFC-23 incineration constitutes CDM projects resulting in certified CERs. There are 19 registered HFC‐23 incineration projects, of which 11 are in China, 5 are in India, and the other 3 being in Korea, Mexico and Argentina respectively.

What are HFCs?
The phase-out by 2010 of chlorofluorocarbons (CFCs) used as refrigerants is mandated under the Montreal Protocol on Substances That Deplete the Ozone Layer. Hydrochlorofluorocarbons (HCFCs) including HCFC-22
are transitional replacement gas to these phased‐out gases.

HCFC-22 (chlorodifluoromethane or CHClF2) is an industrial chemical used in the airconditioning,
refrigeration and foam sectors (referred to as ‘emissive uses’). HCFC-22 is also used as a feedstock chemical in the production of material such as Poly-Tetra-Fluoroethylene (Teflon). HFC-23 (trifluoromethane or CHF3) is an inevitable by-product of HCFC-22 production. It is a potent greenhouse gas (GHG) with a 100 year global warming potential (GWP) of approximately 11,700 (IPCC 1995).

What is the controversy:
Destroying HFC-23 is extrmely lucrative because the cost to destroy it is just a fraction of the revenue they earn from selling the carbon credits through the CDM. So there is incentive in overproducing HFC 22 to incinerate the by-product HFC-23 which may actually be counter productive for the environment and the carbon reduction could be more of an accounting gimmick.

World Bank has strongly refuted such claims. As per them the increase in HCFC is due to the increasing demand in the project countries. They refute such claims with the fact that the production is not outstripping consumption in any of these countries and the overall
national production of HCFC-22 in these countries significantly exceeds that of units under CDM project.