The Executive Committee of the Multilateral Fund (MLF) comprises an equal representation of seven developed (non-Article 5) and seven developing (Article 5) countries. Elected annually by the Meeting of the Parties to the Montreal Protocol, the Committee oversees and reports on the financial aspects of projects aimed at phasing out ozone depleting substances (ODS) and phasing down hydrofluorocarbons (HFCs) in Article 5 countries. The Chair of the Committee reports annually to the Meeting of the Parties.
Replenished every three years, MLF finances activities such as the closure of ODS production facilities, conversion to non-ODS technologies, establishment of national ozone offices, training of technicians and customs officers, and capacity building. It also funds initiatives to reduce HFCs with high global warming potential (GWP), as established under the Kigali Amendment in 2016.
Developed nations contribute financially to the MLF, assisting Article 5 countries in fulfilling their Montreal Protocol obligations. Up to 20 per cent of these contributions can be directed towards implementing eligible projects through bilateral cooperation with selected developing countries.
Financial and technical assistance for Article 5 countries is provided through direct grants and delivered primarily through four implementing agencies:
- United Nation Environment Programme (UNEP)
- United Nations Development Programme (UNDP)
- United Nations Industrial Development Organization (UNIDO)
- The World Bank
The MLF Secretariat supports the Executive Committee and carries out day-to-day operations. Based in Montreal, Canada, it comprises a small number of professional and support staff. The MLF Treasurer is responsible for receiving and administering pledged contributions and disbursing funds to the implementing agencies based on the decisions of the Executive Committee. UNEP acts also as the Treasurer of the MLF.