March 23, 2007

The Multilateral Fund eyes the 2010 target

The Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol met last week to approve US $54.6 million for 32 developing countries to eliminate over 20,000 ODP of ozone depleting substances (ODS).   Projects approved by the Executive Committee  included US $24 million for China to dismantle CFC production plants thus ending production of CFCs more than two years ahead of the 2010 deadline for CFC elimination set by the Montreal Protocol.  Smaller projects in Bolivia, the Seychelles, Paraguay and Zimbabwe received funding for their plans to phase-out the use of CFCs in their refrigeration servicing sectors, an area where success is directly related to the achievement of the 2010 deadline.
 
In the context of its continuous financial planning process, the Executive Committee     established a number of specific priorities for unallocated funds in its triennial budget including among others, support for any new Parties to the Montreal Protocol and any extra support needed for national ozone units in developing countries. Another priority is accelerating the elimination of CFC production and the World Bank will investigate the possibilities of advanced CFC phase-out in countries like Argentina and India. If the remaining CFC producer countries were to agree to an accelerated plan, all CFC production in developing countries could be completely eliminated well ahead of the 2010 deadline.  Cessation of CFC production is key to reducing the market availability and increasing price of CFCs.  This will encourage users to switch to substitutes that do not harm the ozone layer.  Currently such substitutes are more costly than CFCs.

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 Fund is managed by an Executive Committee chaired in 2007 by Mr. Philippe Chemouny of Canada. 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 implementing agencies of donor countries.  Responsibility for overseeing the operation of the Fund rests with the Executive Committee comprising seven members each from Article 5 countries (China, Guinea, Jordan, Mexico, Sudan, Saint Lucia and Uruguay in 2007) and non-Article 5 countries (Belgium, Canada, Czech Republic, Italy, Japan, Sweden and the USA in 2007).  Since 1991, the Multilateral Fund has approved activities including industrial conversion, technical assistance, training and capacity building worth over US $2 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
Email:  secretariat@unmfs.org
Website:  www.multilateralfund.org