December 4, 2004

CFC producers to shut down sooner than expected

China and Venezuela will cease production of chlorofluorocarbons (CFC) more than two years in advance of the deadline set by the Montreal Protocol.    The 17 year old Montreal Protocol which was set up to protect the earth’s ozone layer bans the production and supply of  CFCs and halons in developing countries beyond 1 January 2010.

At the 44^th meeting of the Multilateral Fund's Executive Committee held in Prague, Czech Repbulic, an additional $10 million of funding was provided to China by the Executive Committee of the Multilateral Fund for a project that will accelerate China’s current efforts and halt the production of CFCs and halons.  CFC and halon production in China will now cease by July 2007.  A new agreement between the Executive Committee and Venezuela means US $16.5 million will go to finance the closure, by January 2007, of CFC production in Venezuela.  

With the assistance provided through the Multilateral Fund not only are all seven developing countries that produce CFCs on track to achieve the Montreal Protocol deadline,  but five of these countries will meet their production phase-out commitments at least one year in advance. The Multilateral Fund continues to demonstrate how an effective financial mechanism can help developing countries exceed their environmental goals.

The Executive Committee also made commitments of a total of US $3.5 million to assist Cuba and Thailand to eliminate their consumption of methyl-bromide and of a total of US $25.9 million for Indonesia, Kenya,  Lebanon, Panama and Sudan to eliminate consumption  of a number of substances including CFCs, carbon tetrachloride (CTC), methyl chloroform and trichloroethane (TCA).  These funds will be disbursed to countries in annual tranches. 

Aside from these multi-year commitments, a total of US $75 million was made available immediately to 70 developing countries to fund projects to phase out the consumption of ODS and to strengthen national ozone units.  Exceptionally, special funding of US $8,000 was granted to Grenada’s National Ozone Unit following damage to its infrastructure by Hurricane Ivan.

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 chlorofluorocarbons (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