Decision 58/19

Following the report of the contact group, the Executive Committee decided:

1. To approve the following interim guidelines for the funding of demonstration projects for the disposal of ODS in accordance with paragraph 2 of decision XX/7 of the Meeting of the Parties:
   1. For each separate category of activities for ODS disposal, namely collection, transport, storage and destruction, the definitions are as set out in Annex VIII to the present report;
   2. The Multilateral Fund will fund a limited number of demonstration projects under the following conditions:
      1. No funding would be available for the collection of ODS, except as a contribution to the monitoring of the sources of the ODS for an already existing, separately funded, collection effort for CFCs;
      2. A limited number of demonstration projects for ODS disposal related to paragraph 2 of decision XX/7, covering aspects not yet covered by other demonstration projects, will be considered only at the 59^th Meeting for project preparation funding;
      3. The funding would be limited to a maximum level of up to US $13.2/kg of ODS to be destroyed for non-low-volume-consuming countries, on the understanding that this would be based on expectation of high start‑up costs for these new activities, and would not constitute a precedent. Should the project not foresee activities related to all of the following areas (transport, storage and destruction), this threshold would be adjusted accordingly;
      4. For the disposal of halon and for the disposal of carbon tetrachloride (CTC), funding would be provided for a maximum of one demonstration project each, provided the respective projects have an important demonstration value;
   3. Bilateral and implementing agencies are requested to report annually to the first meeting of the Executive Committee on progress and experiences gained in demonstration projects on disposal, commencing in the first year after project approval. These reports should cover the amounts of the different ODS collected or identified, transported, stored and destroyed, as well as financial, managerial and co-funding arrangements, and any other relevant issues;
   4. Bilateral and implementing agencies are requested, when submitting activities for funding that are related to the disposal of ODS, to provide:
      1. In the case of requests for project preparation funding:
         1. An indication of the category or categories of activities for the disposal of ODS (collection, transport, storage, destruction), which will be included in the project proposal;
         2. An indication whether disposal programmes for chemicals related to other multilateral environmental agreements are presently ongoing in the country or planned for the near future, and whether synergies would be possible;
         3. An estimate of the amount of each ODS that is meant to be handled within the project;
         4. The basis for the estimate of the amount of ODS; this estimate should be based on known existing stocks already collected, or collection efforts already at a very advanced and well‑documented stage of being set up;
         5. For collection activities, information regarding existing or near-future, credible collection efforts and programmes that are at an advanced stage of being set up and to which activities under this project would relate;
         6. For activities that focus at least partially on CTC or halon, an explanation of how this project might have an important demonstration value;
      2. In the case of project submissions:
         1. Updated and more detailed information for all issues mentioned under project preparation funding contained in all sub-paragraphs of (iv) a. mentioned above;
         2. A detailed description of the foreseen management and financial set-up; this should include details such as the total cost of the disposal activity including costs not covered by the Multilateral Fund, the sources of funding for covering these costs, description of the sustainability of the underlying business model, and an identification of time-critical elements of the implementation, which subsequently might be used to monitor progress;
         3. A clear indication how the project will secure other sources of funding; these other sources of funding should be available, at least partially, before the end of 2011. In case of activities of the collection type, any other sources of funding necessary in line with sub-paragraph (iv) a. iv. above related to collection would need to be secured before the project is submitted to the Executive Committee;
         4. A concept for monitoring the origin of recovered ODS for future destruction, with the objective of discouraging the declaration of virgin ODS as used ODS for destruction. This concept should include or at least allow for external verification of the amounts destroyed, and the costs for its operation should be covered sustainably;
         5. The project proposal should include valid assurances that the amount of ODS mentioned in the proposal will actually be destroyed, and the agencies should submit proof of destruction with the financial closure of the project;
         6. An exploration of other disposal options for the used ODS such as recycling and reuse opportunities;
2. To consider at its 60^th Meeting any decision taken by the Parties at their Twenty-first Meeting that might relate to these interim guidelines and definitions;
3. To request the Fund Secretariat to provide, to the second Meeting of the Executive Committee in 2011, a report on the experience gained in the implementation of the disposal projects, using reports from bilateral and implementing agencies and other relevant sources of information; and
4. To consider whether to review the interim guidelines and related definitions at the 64^th Meeting in light of the experience gained and any additional information and guidance available at that time.