December 1, 2005

54 developing countries to receive US $123 million to eliminate substances that harm the ozone layer

An additional US $123 million is to be made available immediately to 54 developing countries to assist their industries in phasing out 27,790 tonnes of substances that deplete the ozone layer. This amount approved by the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol at its 47^th meeting last week was the largest single funding approval in the history of the Multilateral Fund.  It brings the total funding approvals for the 2003-2005 triennium to almost US $573 million which means that the Executive Committee has fulfilled its objective of fully utilizing the Fund’s 2003-2005 triennial budget.   A further triennial replenishment of the Multilateral Fund will be considered by the Parties to the Montreal Protocol at their meeting in December 2005.

The Executive Committee also put plans in place for the complete closure of the production of ozone depleting substances (ODS) in developing countries. The Committee made commitments totaling US $67.2 million to the Governments of China and Romania in order to eliminate CTC and methyl bromide production in China and all ODS production in Romania.  Funding will be provided on an annual basis and is subject to targets set-out in performance-based agreements made between the governments concerned and the Executive Committee.  Specific reductions in the levels of ODS production must be made before funding tranches are released to countries. The Executive Committee will carefully monitor these projects, as well as all projects funded by the Multilateral Fund, to ensure that they are brought to timely and successful completion according to the timetable set by the Montreal Protocol.

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 2005 by Paul Krajnik of Austria, Khaled Klaly of Syria is 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, the Czech Republic, Japan, United Kingdom and the USA) and developing countries (Brazil, Cuba, Niger, the Syrian Arab Republic, Thailand, The former Yugoslav Republic of Macedonia and Zambia).  Since 1991, the Multilateral Fund has approved activities including industrial conversion, technical assistance, training and capacity building worth almost US $1.977 billion.

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