The Fund is dedicated to reversing the deterioration of the Earth's ozone layer. It was established by a decision of the Second Meeting of the Parties to the Montreal Protocol (London, June 1990) and began its operation in 1991. The main objective of the Fund is to assist developing country parties to the Montreal Protocol whose annual level of consumption of the ozone depleting substances (ODS) chlorofluorocarbons (CFCs) and halons is less than 0.3 kilograms per capita to comply with the control measures of the Protocol. Currently, 147 of the 197 Parties to the Montreal Protocol meet these criteria. They are referred to as Article 5 countries.
The Multilateral Fund is managed by an Executive Committee with equal membership from developed and developing countries. Since the inception of the Fund, the Executive Committee has held 93 meetings. The Fund Secretariat, located in Montreal, assists the Executive Committee in its tasks. Projects and activities supported by the Fund are implemented by four international implementing agencies and a few bilateral agencies.
On 27 October 2023, the Thirty-Fifth Meeting of the Parties to the Montreal Protocol (35th MOP) decided on the replenishment of the Multilateral Fund for the triennium 2024-2026. The Parties agreed on a budget of US $965 million for the triennium, a record amount.
As at 8 November 2023, the contributions received by the Multilateral Fund from developed countries, or non-Article 5 countries, totalled over US$ 4.7 billion. The Fund has also received additional voluntary contributions amounting to US $25.5 million from a group of donor countries to finance fast-start activities for the implementation of the HFC phase-down.
To facilitate phase-out by Article 5 countries, the Executive Committee has approved 144 country programmes, 144 HCFC phase-out management plans (HPMPs), 24 Kigali HFC implementation plans (KIPs), pilot projects to maintain and/or enhance energy efficiency in the context of HFC phase-down, and has funded the establishment and the operating costs of ozone offices in 145 Article 5 countries.