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 Multilateral Fund approves landmark project for China with ozone and climate benefits - up to US $385 million of funding over the next 17 years

 22 April 2013

In a landmark decision the Multilateral Fund’s Executive Committee has agreed to provide China, the largest producer and consumer of HCFCs, an amount up to US $385 million for the entire elimination of its industrial production of ozone depleting substances (ODS) by the year 2030. China has not only agreed to retire its current HCFC production capacity but will also retire surplus production capacity that is currently not utilized. HCFCs, as well as being the last remaining ozone depleting substances controlled by the Montreal Protocol and to be funded by the Multilateral Fund, are also greenhouse gases. According to a statement by the Government of China the total amount of HCFCs to be eliminated over the period to 2030 will prevent the emission of over 4.3 million metric tonnes of HCFCs, equal to 300,000 tonnes in terms of its ozone depletion potential, and 8 billion tonnes of carbon dioxide equivalent greenhouse gas emissions. This is potentially the largest project approved so far under the Multilateral Fund since its inception.

China will close and dismantle its production lines producing only HCFCs for uses controlled under the Montreal Protocol and ensure that any HCFC plants that will receive funding do not switch to producing HCFCs as industrial feedstock, a use not controlled by the Montreal Protocol. China will also coordinate with stakeholders and make best efforts to manage HCFC production and associated by-product production in HCFC plants in accordance with best practices to minimize associated climate impacts.  Over the next four years China will receive US $95 million to cover the first stage of its HCFC production phase-out management plan (HPPMP) to assist the country to meet the freeze in HCFC production by 2013 and the reduction by 10 per cent by 2015 as required by the Montreal Protocol’s HCFC phase-out schedule.  The Multilateral Fund’s accountable and transparent structure will ensure that China’s performance under the HPPMP will be verified before further annual tranches are released and any interest earned by China on the amounts received will be offset against future tranches of funding. 

The latest data shows that China produces 92 per cent of the total HCFC production of developing countries. China’s HCFCs are supplied to the world’s refrigeration, air conditioning and foam manufacturing sectors and also used as solvents and to some extent for fire protection equipment and the sterilization of medical devices.  The phase-out of HCFC production in China is thus fundamental to ensure the compliance of all developing countries with the Montreal Protocol and the overall success of the Protocol. 

 

Background

The Montreal Protocol sets specific time bound targets to reduce and eventually phase-out the consumption and production of chemicals that damage the ozone layer (ozone depleting substances or ODS) in both developed and developing countries. The Multilateral Fund for the Implementation of the Montreal Protocol was established to provide financial and technical cooperation, including the transfer of technologies to Parties operating under paragraph 1 of Article 5 of the Montreal Protocol, Article 5 countries, to enable their compliance with the Montreal Protocol’s targets. Article 5 countries are developing country Parties whose annual per capita consumption and production of CFCs and halons is less than 0.3 kg per capita on the date of entry into force of the Montreal Protocol or any time thereafter until 1 January 1999. There are currently 148 countries categorized as operating under Article 5 paragraph 1 of the Montreal Protocol (September 2012).

The Multilateral Fund is managed by an Executive Committee which is responsible for overseeing the operation of the Fund. The Committee comprises seven members from developed and seven members from developing countries. In 2013 the Committee membership includes Belgium, Bulgaria, Canada, Finland, Japan, United Kingdom of Great Britain and Northern Ireland, and the United States of America (developed countries) and India, Kuwait, Mali, Nicaragua, Serbia Uganda and Uruguay (developing country members) . Ms. Fiona Walters (United Kingdom) serves as Chair and Mr. Vladan Zdravkovic (Serbia) serves as Vice-Chair of the Executive Committee for one year beginning 1 January 2013. The Committee is assisted by the Fund Secretariat which is based in Montreal, Canada. Activities are implemented by four international agencies (UNDP, UNEP, UNIDO, World Bank) and a number of bilateral government agencies.

Since 1991, the Multilateral Fund has approved activities including industrial conversion, technical assistance, training and capacity building worth approximately US $3 billion that will result in the phase out of more than 460,000 ODP tonnes of consumption and production of ODS in developing countries.

 In September 2007 the Parties to the Montreal Protocol decided to accelerate the freeze and phase-out of hydrochlorofluorocarbons (HCFCs). Hydrochlorofluorocarbons (HCFCs) are ozone-depleting substances (ODS) with a significant global-warming potential. The Montreal Protocol requires Article 5 country Parties to gradually phase-out HCFCs starting from 2013 with a freeze in consumption and production, a 10 per cent reduction by 2015, 35 per cent reduction by 2020, a 67.5 per cent reduction by 2025 resulting in the complete phase-out of HCFC consumption and production by 2030 while allowing an amount of 2.5 per cent for the servicing of existing refrigeration and air conditioning equipment during the period 2030 to 2040.  The Multilateral Fund intends to finance HCFC phase out in the countries eligible for its financial and technical assistance. As at the 69th meeting of the Executive Committee that took place from 15 to 19 April 2013 in Montreal (Canada), 138 Article 5 countries have national plans to phase-out HCFCs in place.

For further information, please contact:
Julia Anne Dearing
Information Management Officer
Secretariat of the Multilateral Fund for the Implementation of the Montreal Protocol
1000, De La Gauchetière Street West
Montreal, Quebec
H3B 4W5, Canada
Phone: +1514 282-7862
Mobile: +1 514 591 9353
E-mail:
secretariat@unmfs.org

 Funding success - the Multilateral Fund celebrates 25 years of the Montreal Protocol on Substances that Deplete the Ozone Layer Protocol

Untitled Document

17 September 2012

Montreal Protocol at 25For the past 25 years Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer have committed to reduce their levels of production and consumption of chemicals that harm the ozone layer according to an agreed schedule. The Montreal Protocol, cited as the most successful environmental agreement, has achieved the global phase-out of CFCs and other ozone depleting substances (ODS) and profoundly influenced other environmental negotiations over the years. One of the many reasons for its success is the full participation and compliance with the Montreal Protocol by developing country Parties.

The Multilateral Fund for the Implementation of the Montreal Protocol removed financial barriers that might have discouraged developing countries to accede to the Montreal Protocol. A few months after it was set up in 1991, the Multilateral Fund was financing projects to assist its beneficiary countries to work towards their first Montreal Protocol target: the freeze in consumption and production of CFCs in 1999. For 21 of the Montreal Protocol’s 25 years of existence, developing countries have received financial and technical assistance from the Multilateral Fund. Since 1991 the Multilateral Fund’s Executive Committee has approved about US $2.9 billion to support more than 6,800 projects and activities that have phased-out over 460,000 ODP tonnes of consumption and production of ODS in developing countries.

In September 2007 the Parties to the Montreal Protocol decided to accelerate the freeze and phase-out of hydrochlorofluorocarbons (HCFCs), ODS that not only harm the ozone layer but also have other detrimental environmental impacts. Following this decision, developing and developed country members of the Executive Committee worked together through complex and protracted technical negotiations to develop the policies and guidelines to assist countries to phase out HCFCs with due consideration to alternative substances that minimize other impacts on the environment, including on the climate. As of July 2012 the Executive Committee has approved national plans to phase-out HCFCs for 126 of the 146 countries eligible for support and committed almost US $538 million of funding for HCFC phase-out in these countries.

According to Maria Nolan, the Chief Officer of the Multilateral Fund Secretariat since 2004, “Implementation of the Montreal Protocol is ultimately the responsibility of national governments” and “The Multilateral Fund is proud to have played a role in supporting the efforts of beneficiary countries that have ensured 25 years of success of the Montreal Protocol”.

The Multilateral Fund for the Implementation of the Montreal Protocol provides funds to help developing countries comply with their obligations under the Protocol to phase out the use of ozone-depleting substances (ODS) at an agreed schedule. The Multilateral Fund is managed by an Executive Committee which is responsible for overseeing the operation of the Fund. The Committee comprises seven members from developed and seven members from developing countries. In 2012 the Committee membership includes Belgium, Canada, Finland, Japan, Romania, United Kingdom of Great Britain and Northern Ireland (Vice-Chair), United States of America (developed countries) and Argentina, China (Chair), Cuba, India, Kenya, Jordan, Mali (developing country members) and is chaired by Mr. Xiao Xuezhi (China). The Committee is assisted by the Fund Secretariat which is based in Montreal, Canada. Activities are implemented by four international agencies (UNDP, UNEP, UNIDO, World Bank) and a number of bilateral government agencies. Since 1991, the Multilateral Fund has approved activities including industrial conversion, technical assistance, training and capacity building worth over US $2.9 billion that will result in the phase out of more than 460,000 ODP tonnes of consumption and production of ODS in developing countries. In September 2007 the Parties to the Montreal Protocol decided to accelerate the freeze and phase-out of hydrochlorofluorocarbons (HCFCs). The Multilateral Fund intends to finance HCFC phase out in the 146 developing countries eligible for its financial and technical assistance and as at the 67th meeting of the Executive Committee, 126 countries have national plans to phase-out HCFCs in place.

For further information, please contact:
Julia Anne Dearing
Information Management Officer
Secretariat of the Multilateral Fund for the Implementation of the Montreal Protocol
1000, De La Gauchetière Street West
Montreal, Quebec
H3B 4W5, Canada
E-mail: secretariat@unmfs.org

 China commits to landmark agreement on dual ozone and climate benefits*

Untitled Document

29 July 2011 - 64th meeting of the Executive Committee of the Multilateral Fund (Montreal)

China, the largest producer and consumer of HCFCs, which not only harm the ozone layer but also the climate due to their high global-warming potential, has been granted US $265 million to cut its use of these gases by 2015. The funding approved by the Executive Committee of the Multilateral Fund will support China’s courageous commitment to make a real change to the global environment as well as a contribution to the green economy. China and its HCFC consuming industries have made a significant step towards achieving the first reductions in HCFCs mandated by the Montreal Protocol, the world's most successful environmental agreement.

The projects agreed between China and the Multilateral Fund’s Executive Committee represent the first stage of China’s HCFC phase-out management plan (HPMP). Once implemented, the HPMP will not only eliminate 3,320 tonnes of HCFC consumption in China but the new technologies adopted will also significantly contribute to global efforts to combat climate change by reducing the emission of greenhouse gases as compared to the technologies currently in use in China.

In recent years China’s consumption of HCFCs has been soaring due to its rapidly growing economy and in 2009 China accounted for over 58% of HCFC consumption in developing countries. China uses HCFCs mainly as refrigerants for air-conditioners and industrial and commercial refrigeration, foam blowing agents, and to a lesser extent as solvents. These industrial sectors will face the challenge of converting hundreds of assembly lines in order to freeze the country’s consumption of HCFCs in 2013 and reduce its consumption from this level by 10% by 2015 in line with the Montreal Protocol’s control measures for HCFCs. The overall reduction to be achieved will represent about 17% of China’s total amount of controlled HCFC use. China will be assisted in its efforts by UNDP, UNEP, UNIDO, the World Bank and the Governments of Germany and Japan.

According to Maria Nolan, the Chief Officer of the Multilateral Fund, “The approval of China’s HCFC phase-out management plan represents an extraordinary achievement by the Multilateral Fund and its stakeholders to reduce HCFC consumption”. Through submitting this plan China has made a longer term promise to entirely eliminate China’s HCFCs by 2030 with assistance from the Multilateral Fund. In the words of Mr. Wen Wurui from the Ministry of Environmental Protection of China “One Fund, one dream, the Fund makes the dream come true”.

* “Agreement between the Government of China and the Executive Committee of the Multilateral Fund for the reduction in consumption of hydrochlorofluorocarbons” made at the 64th Meeting of the Executive Committee that took place in Montreal, Canada from 25 to 29 July 2011.

The Multilateral Fund is managed by an Executive Committee which is responsible for overseeing the operation of the Fund. The Committee comprises seven members from developed and seven members from developing countries. In 2011 the Committee membership includes Australia, Belgium, Czech Republic, France, Japan, Switzerland, United States of America (developed countries) and Argentina, China, Cuba, Grenada, Kenya, Kuwait, Morocco (developing country members) and is chaired by Mr. Patrick McInerney of Australia. The Committee is assisted by the Fund Secretariat which is based in Montreal, Canada. Activities are implemented by four international agencies (UNDP, UNEP, UNIDO, World Bank) and a number of bilateral government agencies. Since 1991, the Multilateral Fund has approved activities including industrial conversion, technical assistance, training and capacity building worth over US $2.6 billion that will result in the phase out of almost 460,000 ODP tonnes of consumption and production of ozone-depleting substances in developing countries. In September 2007 the Parties to the Montreal Protocol decided to accelerate the freeze and phase-out of hydrochlorofluorocarbons (HCFCs). The Multilateral Fund intends to finance HCFC phase‑out in all 144 developing countries eligible for its financial and technical assistance and as at the 64th Meeting of the Executive Committee, 81 countries have HPMPs in place.

For further information, please contact:
Julia Anne Dearing
Information Management Officer
Secretariat of the Multilateral Fund for the Implementation of the Montreal Protocol
1000, De La Gauchetière Street West
Montreal, Quebec
H3B 4W5, Canada
Phone: +1514 282-7862
Mobile: +1 514 591 9353
E-mail: secretariat@unmfs.org

 Funding to phase-out HCFCs in 39 countries to safeguard the ozone layer and mitigate climate change

Untitled Document

15 April 2011

Funding to phase-out HCFCs in 39 countries to safeguard the ozone layer and mitigate climate change
During its 63rd Meeting in Montreal 4-8 April 2011, the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol agreed to commit over US $40 million to phase-out nearly 400 ODP tonnes of HCFCs in 39 developing countries*. HCFCs, which not only destroy the stratospheric ozone layer but are also greenhouse gases, are being used in these countries mainly as refrigerants in air conditioners and industrial and commercial refrigeration, as a blowing agent for the manufacture of foam, and to a lesser extent as solvents.

The assistance from the Multilateral Fund will support the 39 countries to implement HCFC phase out management plans (HPMPs) to meet the specific phase-out targets set by the Montreal Protocol. Twenty seven of the countries will each implement an individual HPMP while the 12 Pacific Island Countries (PICs) will implement one HPMP for the entire sub-region of small island countries. The regional approach aims not only to facilitate HCFC phase-out in the PICs but also to be the most cost effective use of funds.

All 39 countries have pledged at a minimum to meet the first two Montreal Protocol control measures for HCFCs, namely the freeze in HCFC consumption by 2013 and the 10 per cent reduction by 2015. Twenty-five countries with low volumes of HCFC consumption intend to achieve the 35 per cent HCFC reduction target by 2020. While most countries will approach the phase out of HCFCs in a stepwise approach and address the total phase-out in a subsequent stage of their HPMPs, the Executive Committee approved HPMPs for five countries (Bhutan, Mauritius, Namibia, Papua New Guinea and Seychelles) to completely phase-out HCFCs well in advance of the Montreal Protocol’s 2040 deadline, in some cases as early as 2020. For these countries the governments concerned had provided a strong commitment to accelerating HCFC phase-out.

The HPMPs approved for the Islamic Republic of Iran, Mongolia, Swaziland, and Viet Nam will convert foam and/or air-conditioning manufacturing plants from HCFC-based to alternative ozone friendly technologies. An investment project for the phase-out of HCFCs used in aerosol manufacturing in Mexico was also approved. The introduction of the alternative technologies in the manufacturing sector and better practices in the refrigeration servicing sector together with enforcement of HCFC import controls by governments will result in a reduction in CO2-equivalent tonnes emitted into the atmosphere and thus provide an overall climate benefit.
In addition to the HPMPs the Executive Committee also approved a number of other projects. These included global activities to be carried out by UNDP, UNEP, UNIDO and the World Bank in order to address the mobilization of resources to maximize the climate co-benefits of HCFC phase-out. Two pilot projects were approved to address the management and disposal of waste ozone depleting substances (ODS) in Ghana and Mexico. The funding would provide start up money that could be leveraged by the two countries not only to destroy ODS waste but also to provide climate benefits. Finally the Executive Committee approved funding for institutional strengthening for nine countries, the second tranche of the national phase-out plans to assist Eritrea and Iraq to sustain zero consumption of CFCs and facilitate the phase-out of HCFCs, and a project for the preparation of methyl bromide phase-out activities in Ecuador.

*Afghanistan; Benin; Bhutan; Chile; Congo; Democratic Republic of Congo; Georgia; Guyana; Honduras; Islamic Republic of Iran; Kyrgyzstan; Lao People’s Democratic Republic; Liberia; Mali; Mauritius; Republic of Moldova; Mongolia; Montenegro; Namibia; Papua New Guinea; Paraguay; Sao Tome and Principe; Seychelles; Swaziland; Timor-Leste; the Bolivarian Republic of Venezuela; Viet Nam and the 12 Pacific Island Countries on a regional basis (Cook Islands, Kiribati, Marshall Islands, Federated States Of Micronesia, Nauru, Niue, Palau, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu).

The Multilateral Fund is managed by an Executive Committee which is responsible for overseeing the operation of the Fund. The Committee comprises seven members from developed and seven members from developing countries. In 2011 the Committee membership includes Australia, Belgium, Czech Republic, France, Japan, Switzerland, United States of America (developed countries) and Argentina, China, Cuba, Grenada, Kenya, Kuwait, Morocco (developing country members) and is chaired by Mr. Patrick McInerney of Australia. The Committee is assisted by the Fund Secretariat which is based in Montreal, Canada. Activities are implemented by four international agencies (UNDP, UNEP, UNIDO, World Bank) and a number of bilateral government agencies. Since 1991, the Multilateral Fund has approved activities including industrial conversion, technical assistance, training and capacity building worth over US $2.6 billion that will result in the phase out of over 450,000 ODP tonnes of consumption and production of ozone-depleting substances in developing countries. In September 2007 the Parties to the Montreal Protocol decided to accelerate the freeze and phase-out of hydrochlorofluorocarbons (HCFCs). The Multilateral Fund intends to finance HCFC phase out in all 144 developing countries eligible for its financial and technical assistance and as at the 63rd Meeting of the Executive Committee, 60 countries have HPMPs in place, 13 of which will address the Montreal Protocol control measures up to 2015, and 39 up to 2020. Eight countries already have plans in place to completely phase-out HCFCs.

For further information, please contact:
Julia Anne Dearing
Information Management Officer
Secretariat of the Multilateral Fund for the Implementation of the Montreal Protocol
1000, De La Gauchetière Street West
Montreal, Quebec
H3B 4W5, Canada
Phone: (1-514) 282-1122
Fax: (1-514) 282-0068
E-mail: secretariat@unmfs.org