April 16, 2008

Multilateral Fund takes action to help countries accelerate their phase-out of HCFCs

54th Meeting of the Executive Committee of the Multilateral Fund
Montreal, Canada – 7 to 11 April 2008

The Executive Committee of the Multilateral Fund agreed at its 54th Meeting to immediately begin the preparation of plans that will assist developing countries eliminate their production and consumption of HCFCs.  This decision was taken less than seven months after the historic agreement in September 2007 to accelerate the phase-out of HCFCs, chemicals that not only damage the ozone layer but also contribute to global warming.  The production and use of HCFCs in developing countries, particularly in air conditioning, the refrigeration sector and foam industries, have grown significantly over the past five years, and without early action this growth is expected to continue.  The September 2007 adjustments to the Montreal Protocol oblige countries to take action as soon as possible to freeze their HCFC production and consumption levels in 2013 and reduce by 10 percent their production and consumption of HCFCs by 2015. 

The Executive Committee approved guidelines that will assist each country to prepare an HCFC phase-out management plan (HPMP) mapping out a detailed plan of action to eliminate their use of HCFCs. The guidelines not only take account of the ozone depleting potential of HCFCs but also the global warming implications of alternative substances and technologies.  Seed funding of about US $1 million for the preparation of HPMPs was approved to enable the Multilateral Fund’s implementing agencies to start work immediately.  In addition, the Executive Committee requested that data on each country’s HCFC prices be included in their annual reports to the Executive Committee so that it can be incorporated into the Committee’s planning process.  In future the Executive Committee will take account of all ozone depleting substances to be addressed in its three-year phase-out plan.

At present the most important deadline for the developing countries is the phase-out of CFCs by 2010.  While most countries are well-positioned to achieve this target the Executive Committee continues to pay attention to the refrigeration servicing sector in smaller countries.   At its 54th Meeting, the Executive Committee also approved new plans to phase-out CFCs in nine countries and funding tranches for CFC phase-out in another nine countries. 

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 hydrochlorofluorocarbons (HCFCs), 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 being chaired in 2008 by Mr. Albert Rombonot of Gabon. 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, Dominican Republic, Gabon, India, Lebanon, Sudan and Uruguay in 2008) and non-Article 5 countries (Australia, Belgium, Germany, Japan, Romania, Sweden and the United States of America in 2008).  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