July 9, 2004

Focus of Multilateral Fund set to shift

The extraordinary success of the Multilateral Fund and the Montreal Protocol was highlighted this week during the 43rd meeting of the Multilateral Fund's Executive Committee. The Fund was set up to assist developing countries to comply with the terms of the Montreal Protocol, an international agreement that sets out a timetable for the phase-out of ozone depleting substances in both developed and developing countries. Now that plans and funding are already in place for the elimination of all but some 18,000 tonnes of ozone depleting substances (ODS), developing countries are now well on track to meet the Protocol's 2005 and 2007 interim phase-out deadlines.

The Executive Committee, which in the past, has been mostly concerned with planning and initiating projects to eliminate ODS, must now turn its attention to ensuring that these projects are brought to timely and successful completion.  With this in mind, the Committee decided to increase institutional support to 43 smaller countries in order to ensure that they can fund a full-time national ozone officer; national ozone officers play a key role in helping countries meet their Montreal Protocol deadlines.   The Committee has also put in place special criteria to deal with any difficulties countries may have when attempting to accelerate the elimination of methyl-bromide, a substance that is particularly harmful to the ozone layer.

At the 43rd meeting, the Executive Committee approved further funding of US$ 31 million for ODS phase-out projects and activities in 39 countries. This included funding for plans in China, Cuba, and Serbia and Montenegro that will phase-out over 800 tonnes of ODS. Exceptionally, a project to undertake a study on the long term management of HCFCs in China was approved. HCFC’s have not so far been considered for funding by the Multilateral Fund, but the Committee is concerned about the predicted growth in the use of HCFC’s in China and subsequently in other developing countries.  Afghanistan, a new party to the Protocol, and Bhutan, soon to be a party, both received funding for development of their institutional capacity to manage the phase out-of ODS and to prepare phase-out projects.

Background information

The ozone layer which absorbs ultraviolet radiation harmful to living organisms and human health, is in danger from several chemicals currently used in industry and agriculture such as chloroflurocarbons (CFCs), halons, carbon tetrachloride, methyl chloroform and methyl bromide.

The Multilateral Fund for the Implementation of the Montreal Protocol began its operation in 1991. The main objective of the Multilateral Fund is to assist developing country parties to the Montreal Protocol whose annual per capita consumption and production of ozone-depleting substances is less than 0.3 kg to comply with the control measures of the Protocol. These countries are referred to as Article 5 countries.

The 2 billion dollar Fund is managed by an Executive Committee chaired in 2004 by Marcia Levaggi of Argentina, Paul Krajnik of Austria the Vice Chair. The Committee is assisted by the Fund Secretariat which is based in Montreal. Activities are implemented by four international agencies (UNDP, UNEP, UNIDO, World Bank) and a number of bilateral government agencies.  Responsibility for overseeing the operation of the Fund rests with the Executive Committee comprising seven members each from developed (Austria, Belgium, Canada, Hungary, Japan, United Kingdom and the USA) and developing countries (Argentina, Bangladesh, China, Cuba, Iran, Niger and Mauritius).  Since 1991, the Multilateral Fund has approved activities including industrial conversion, technical assistance, training and capacity building worth approximately US $1.6 billion that will result in the phase out of approximately 180,000 tonnes of consumption and production of ozone-depleting substances in developing countries.

For further information, please contact:

Julia Anne Dearing
Information Management Officer
Secretariat of the Multilateral Fund for the Implementation of the Montreal Protocol
1800 McGill College, 27th floor
Montreal, QC, Canada H3A 3J6
Phone: (1-514) 282-1122
Fax: (1-514) 282-0068
E-mail: secretariat@unmfs.org
Website:  www.multilateralfund.org