MP a Success in the Making-E

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MONTREAL PROTOCOL ON SUBSTANCES

THAT DEPLETE THE OZONE LAYER

2007: A SUCCESS IN THE MAKING

Introdution

It is oten said tat an suessul enterprise will ave ,000 peoplelaiming to be its parent. In te ase o te Montreal Protool on

Substanes tat Deplete te Ozone Laer, tat lié rings true, aste eort to ontrol and ten pase out ozone depleting substanes is

replete wit stories o undreds o visionar individuals and institutionswo took reative and oten ourageous measures to address a serious and

urgent treat to lie on eart.

To date, te results o tis eort ave been noting less tan spetaular. As o 2006, te9 Parties wi ave ratied te Montreal Protool ave, in te aggregate, redued teir onsumptiono ozone-depleting substanes b approximatel 95 per ent. Developing ountries, despite teir man

allenges, ave aieved a redution o over 72 per ent, wit most o te Protool’s pase-out goalsbeing aieved signiantl aead o te required redution sedule. In te proess, te Protool andits innovative Multilateral Fund ave supported te development and operation o national ozoneunits in 40 ountries, and te design and implementation o over 5,000 projets and ativities valuedat over 2 billion US dollars.

Despite tese and man more aomplisments to date, te Montreal Protool and its mission to protette ozone laer must still, owever, be viewed as a suess in te making rater tan a ompletedendeavour. Indeed, te at tat te ozone ole over Antartia reaed reord levels in 2006 serves asa reminder tat te impat o emissions o ozone-depleting substanes will be long lasting, and tattere is more work to be done beore te world an rest assured tat te ozone laer is sae or tisand uture generations.

Tis booklet summarizes te stor o te development o te ozone issue and te Montreal Protool.It also provides an overview o te provisions and strutures tat ave enabled global progress on tiske environmental issue. Being a summar, it annot inlude te names o all o te people, institutionsand events tat were important to te suess o te Protool. Readers wo would like to delve moredeepl into tese matters are ortunate enoug to be able to onsult a number o ver good bookson tis subjet, most notabl te 2002 publiation, Proteting te Ozone Laer, written b two ote leading gures involved in te Protool, Mr. Stepen Andersen and Mr. Madava Sarma, andpublised or and on beal o te United Nations Environment Programme (UNEP). In te meantimeit is to be oped tat tis booklet, oming as it does on te twentiet anniversar o tis landmarktreat, will elp te publi to understand and appreiate more ull te aomplisments to date andte allenges aead in te ontinuing global eort to protet te ozone laer.

I. FROM ThEORy TO AcTION

hovering some 0–6 kilometres above te eart’s surae, te eart’s protetive ozone laer lters outdangerous ultraviolet radiation rom te sun and, in so doing, protets te ealt and environmento all te eart’s inabitants. Modern siene suggests tat te eart’s ozone laer was ormed some400 million ears ago and remained pratiall undisturbed (and, as a onsequene, somewat takenor granted) or virtuall all tat time. It was tereore wit a sense o deep onern tat, in 974, teworld ommunit reeived te potesis o two emists rom te Universit o caliornia at Irvine,tat te ozone laer migt be treatened b te ontinuing emissions o lorofuoroarbons (cFcs),

a widel used set o industrial emials.

In teir June 974 artile in te journal Nature, F. Serwood Rowland and Mario Molina teorized tat,wen normall stable cFcs reaed te stratospere, teir exposure to ultraviolet radiation rom te sun



led to their decomposition. Once reed rom their

bonds, the chlorine atoms earlier contained in the inertCFCs initiated a chain reaction process which destroyedsignifcant quantities o stratospheric ozone – in act,Rowland and Molina estimated that one chlorine atomcould destroy as many as 100,000 molecules o ozone.They also expressed the view that the level o CFCsbeing released into the environment was unsustainableand, unless abated, could lead to signifcant drops instratospheric ozone. The consequences o such ozonedepletion would be likely to include increases in skincancers, genetic mutations, crop damage and possiblydrastic changes to the world’s climate. It was thereore

deemed essential to take action to reduce CFCs.

The Rowland and Molina hypothesis aroused extensive media interest, which led to urgent calls oraction to be taken to study this issue and take measures to deal with it; scientists and policy makersalike rose to the occasion.

Throughout 1975 and 1976, urther research was carried out which lent support to Rowland and Molina’swork and enhanced our understanding o the depletion o the ozone layer. In particular, the work oPaul Crutzen added signifcantly to the global understanding o the process o ozone depletion. Onthe policy side, a 1977 meeting o experts organized by UNEP resulted in the development o a worldplan o action on the ozone layer, and led to increased cooperative research into the ozone depletiontheory. The word “theory” is used in this context because, we should remember, in the mid and late

1970s the notion o stratospheric ozone depletion was still just that – a theory.

Fortunately, however, even though the theory was as yet unproven, many countries were convincedo the immediate need to take precautionary action and in the late 1970’s several took action to banCFCs in non essential aerosol uses.

While these early eorts were important, they were not able tostem the extensive growth in the use o CFCs throughout the world.Accordingly, as research into ozone depletion continued through theearly 1980s, so did the calls or concerted global action to deal withthe problem o CFCs. In 1985, these eorts gave rise to the ViennaConvention or the Protection o the Ozone Layer. This agreement

coincided with the initial proo that the hypothesized stratosphericozone depletion was actually taking place above Antarctica. It wasnow that the signifcant thinning o the ozone layer over Antarcticawas frst termed an “ozone hole”, a phrase that – albeit, strictlyspeaking, not entirely accurate – captured the public imagination andserved international eorts to mobilize support or action.

In the light o this frst real proo o ozone depletion, many who wereconcerned about its potentially catastrophic eects were dissatisfedwith the emphasis placed by the Vienna Convention on research rather than on action to mandatereductions in the use o ozone depleting chemicals. It must be remembered, however, that while newproo o the existence o stratospheric ozone depletion had emerged, in 1985 the linkage between

ozone depletion and human made chemicals such as CFCs was still not proven.

In addition, those who wonder why stronger action was not taken sooner should understand justhow prevalent throughout modern society were these substances now being considered or control.

Proessor F. Sherwood Rowland (let) sharedthe 1995 Nobel Prize or ChemistrywithProessor Mario J. Mollina (centre) o theMassachusetts Institute o Technology,United States and Proessor Paul J. Crutzen(right) o the Max Planck Institute, Germany,‘or their work in atmospheric chemistry,particularly concerning the ormation anddecomposition o ozone.’



For example, rom te moment te rose in te morning te

would ave enountered cFcs: in te air onditioner tat adooled teir ouse and te ood in teir rerigerators, te aerosol

ans tat delivered teir deodorant and air spra, te omortoam in teir mattresses and pillows and under teir arpet, and te

insulation oam ontained in teir water eaters and rerigerators.cFcs were also ound in te saet oam in teir ar dasboards and

steering weels. Metl bromide would probabl ave been used to growteir tomatoes and umigate man o te oter ood produts te used

on a dail basis, and alons would ave been used extensivel to provide reprotetion in teir oes and businesses, as well as in te omputer entres and

power stations tat made teir dail lie easier.

Ozone-depleting solvents su as cFc , arbon tetraloride and metl loroorm would avebeen used b te dr leaners wo ad leaned teir lotes, te workers wo made te metal partsound in virtuall all teir eletronis, rerigeration equipment and ars, and to perorm su tasks aslaminating te wood on teir desk at work. In at, as te above illustrates, te use o ozone-depletingsubstanes was intriatel woven into te abri o modern lie. In addition, te prodution and saleso tese emials and related produts involved undreds o tousands o emploees and billions odollars o invested apital.

In tis ligt, it ma not seem so surprising tat te rst steps taken b te Vienna convention wererater tentative and tat te ountries negotiating te Montreal Protool onl two ears later ad toonront man ears and entrened interests in teir eort to ome to agreement on a binding treataimed at reduing or eliminating tese substanes. Despite tese ears, owever, te convention itsel

did antiipate te development o a Protool to ontrol ozone-depleting substanes.

II. MONTREAL PROTOcOL NEGOTIATIONS

Te Vienna convention initiated a urter surge in international ativit, refeted b te dozens omeetings and worksops tat led up to te 987 agreement on te Montreal Protool. Tis ationwas spurred b inreasingl serious resear and a rising sense o publi alarm. One important all oration ame just two monts ater te Vienna convention ad been negotiated, wen te Governingcounil o UNEP requested te Exeutive Diretor o tat bod to onvene a working group wit aview to adopting a protool ontrolling cFcs in 987.

Over te next two ears UNEP, bot singl and in onert wit te World Meteorologial Organization(WMO) and oter partners, ailitated a large number o negotiations and meetings, te mostimportant o wi took plae in Rome, Leesburg, Biltoven, Geneva, and Wurzburg. During tosemeetings ountries ame to a better understanding o te ull range o emials o onern (winow inluded alons, arbon tetraloride and metl loroorm), te options available or ontrol,te likel onsequenes o taking or not taking dierent ations, and te initial positions tat dierentountries migt adopt in negotiating a binding treat.

Tis period also saw a dramati and ritiall important sit in te position o industr. Initiall, teindustries produing and using cFcs ad insisted tat no ontrols sould be onsidered until te linkbetween ozone depletion and tese uman made emials ad been proven. In 986, owever, a

ver important industrial group – te Alliane or Responsible cFc Poli – togeter wit te Dupontompan, wi produed approximatel a quarter o te world’s cFcs, announed teir agreementto support global limits on te use o cFcs. Te ontribution tat tese announements made to tepus or a protool annot be overstated.



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III. MONTREAL PROTOcOL

On a old da in September 987 in Montreal, 24 ountries signed te Montreal Protool on Substanestat Deplete te Ozone Laer. Te doument itsel was rater sort – onl about eigt pages – but teimpat tat it ad on te world ommunit was signiant. Te Protool tat was signed on tat da,20 ears ago, ad a number o ke elements, all o wi ave ontributed to te suess tat as beenaieved b te Protool to date.

A. Sienti and tenial underpinning

Te diverse disussions leading up to te sientiall oriented Vienna convention and te subsequentMontreal Protool ad a signiant impat on its struture and terms in some ke areas. Te negotiators

working on te Protool learl understood tat te siene o ozone depletion was evolving quikland tat urter ations would ave to be taken on te basis o tat siene, as well as on teirtenial and eonomi easibilit. Tat understanding maniested itsel in at least two was. First, tenal Protool inluded a provision stating tat, at least ever our ears, a review o te best availablesienti, environmental, tenial and eonomi inormation sould be publised.

To tat end, te Parties to te Protool would, in 989, ormall establis panels o experts in ea otose elds to elp aid tem in teir deision making. Tese assessment panels ave ontributed greatlto te suess o te Protool. Te are made up o proessionals rom Governments, industr and ivilsoiet witin developed and developing ountries; tese volunteers oer teir time and expertisetowards aieving te goal o ozone protetion. Over time, teir assistane to te Parties as inreasedand developed, and te Tenolog and Eonomi Assessment Panel now provides ompreensive

annual updates to te Parties in wi answers are provided to te numerous tenial queries tatte Parties pose annuall.

Te work o te panels as alwas arried great autorit and as su as plaed an invaluable role inensuring tat te Parties to te Protool are provided wit te best possible inormation on wi tobase teir deision making.

Anoter indiation tat te initial negotiators understood te need to keep abreast o ontinuingsienti disoveries an be ound in te so alled “adjustment” provision, b wi te Parties wereenabled to aelerate and inrease te stringen o ontrols on previousl agreed ozone-depletingsubstanes b simple deision. Tis ke provision obviated te need or te Parties to wait or nationalratiation o tese ontrol anges (oten a proess involving man ears), and allowed tem to at

switl in line wit new and emerging sienti disoveries.

Wile tis provision was tougt important in te drating o te Protool, it is unlikel tat man ote negotiating Parties oresaw to wat extent it would atuall be used, in response to te evolvingsienti understanding o ozone issues.

B. control o emials

At te ver eart o te Protool lie te ontrols plaed on ozone-depleting substanes – wi emialsare to be ontrolled, te manner o teir ontrol, and te extent o teir ontrol. Te negotiatorsmeeting in Montreal in September 987 ould initiall onl agree on te ontrol o eigt emials

(ompared wit nearl 00 ontrolled toda). Furtermore, te agreement required onl a 50 per entredution in cFcs and onl a reeze in alons (ompared wit te total pase-out o alons tat wouldbe agreed just ve ears later).



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In terms o te manner o teir ontrol, te negotiators gave areul

tougt as to weter ontrols sould be applied to produtionalone or also to emissions and weter related emials sould

onl be ontrolled in developed ountries. In reognition o teglobal nature o te problem o ozone depletion, te Parties agreed

tat ontrols sould extend to all ountries. In terms o wat was tobe ontrolled, te negotiators agreed to ontrol bot prodution and

onsumption, te latter being dened as prodution plus imports minusexports. Tis unique denition ad te onsequene o apping bot te level

o prodution and te quantit o te substanes tat atuall remained in teountr ea ear (weter su substanes were used or not). Tis latter provision would

enable ountries to aumulate stoks or uture use.

c. Flexibilit o implementation

One o te allmarks o te Montreal Protool was tat, wile te ountries agreed to meet speinumerial redution targets witin agreed timerames, no rules were laid down as to ow toseredutions were to be aieved. Tis allowed ountries to experiment wit dierent approaes tailoredto teir spei irumstanes (e.g., ontrols on spei use, eonomi inentives and disinentives)and to develop, manage and adjust teir implementation plans to enable tem to aieve te agreedtargets in te most eient wa possible.

D. Trade ontrols

Reognition o te global nature o te ozone issue also plaed a role in te Protool’s negotiation otrade ontrols. It was tougt tat, b restriting trade wit ountries not part to te Protool, ountriestat still wanted to use cFcs would ave to beome Parties and agree to ave teir onsumption andprodution ontrolled b te Protool. Te Protool’s trade provisions beneted rom te input o teseretariat o te General Agreement on Taris and Trade (GATT), and ave, over time, served teProtool ver well. Te santions or wi provision is made ave never ad to be speiall enoredand te provisions ave never been allenged. Te ave, owever, undoubtedl ontributed to tenear universal partiipation in te Protool. Indeed, as noted above, at te time o its nal negotiationin Montreal, te Protool was signed b 24 ountries and te European Eonomi communit. Toda,it omprises more tan 90 Parties.

E. Partiipation o developing ountries

Te Protool’s negotiators ad ard-itting disussions on weter and ow to appl te ontrolmeasures to developing ountries and, in keeping wit te global nature o te issue, te settledon inlusion, albeit wit wat as beame known as a “grae period” or developing ountries toompl wit te same requirements tat would ave to be met b developed ountries. In so doing,te put into pratie wat is peraps te rst use o te onept o ommon but dierentiatedresponsibilities.

In addition, te negotiators reognized in bot Artiles 5 and 0 o te Protool tat te developingountries would need assistane to enable teir ompliane wit te agreed ontrol measures.Tese provisions an be seen as te genesis o te 990 reation o te Multilateral Fund or teImplementation o te Montreal Protool (see apter V below).



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F. compliane regime

Te Montreal Protool required annual reporting o data on prodution, imports and exports o teontrolled substanes, to enable an annual review o te Parties’ ompliane wit te Protool ontrolprovisions. Te Protool also inluded a provision in Artile 8 tat envisaged te establisment o aregime or dealing wit non ompliane. Tis non-ompliane regime, wi as now been bolsteredb te inlusion o an indiative list o ations tat migt be taken in ases o non-ompliane, wasagreed b te Parties on an interim basis in 990 and on a permanent basis in 992. Te regime set upan implementation ommittee onsisting o representatives rom all te regions, wi would reviewte data provided b te individual Parties and an oter inormation brougt to its attention, andmake reommendations as to ow te Parties ould deal wit spei ases o non-ompliane.

Wile te irumstanes tat ave led to non-ompliane dier rom one ase to anoter, te

committee as evolved a sstem or te equitable treatment o all Parties, wi involves workingwit te Part to establis a reasonable plan or bringing te Part bak into ompliane and tenseeking appropriate support to enable te plan to be arried out. To date, tis supportive regime,onentrating on te needs o te individual Parties, as been extremel suessul. It as given Partiesaing diulties te ondene to know tat, i te volunteer inormation on teir non-ompliane,te will be treated airl and will be engaged in a spirit o ooperation to enable tem to ome intoompliane in a reasonable period o time.

G. Voting proedure

Te original Montreal Protool stated tat, in te absene o onsensus, an proposed anges to te

Protool would ave to be arried b a two tirds majorit vote o Parties present aounting or at least50 per ent o total onsumption o te ontrolled substanes overed b te Protool. In onsiderationo te at tat tis provision plaed undue power in te ands o te largest users, it was amended in990 to require a majorit o bot te developed and developing ountries (Parties operating underartile 5 o te Protool), present and voting. Tis ange refeted te growing partnersip betweendeveloped and developing ountries in te implementation o te Protool. Te voting proedures ote Protool in an ase ave never ad to be used, all deisions aving been adopted on te basis oa onsensus. Tis is an eloquent testimonial to te dediated, ooperative and ollegial spirit tat asprevailed in te Montreal Protool orum.

IV. EVOLUTION OF ThE MONTREAL PROTOcOL INRESPONSE TO NEW ScIENTIFIc DIScOVERIES

In retrospet, it an be seen tat te ears ollowing te negotiation o te 987 Protool witnessed aontinued underestimation o te problem on te part o te world ommunit in several ke aspets.First, tere was an underestimation o te redutions tat would be neessar to protet te ozonelaer. Indeed, wile some ma ave tougt tat te provisions o te original Montreal Protool wouldprove suient to protet te ozone laer, te art on page 7 learl sows tat, witout signiantsubsequent ation, te world environment would surel ave been in grave jeopard.

Seond, tere was an underestimation o te abilit o industr to adapt to ange and onvert to nonozone-depleting substanes. Tis an probabl best be illustrated b looking at te dierene betweente Protool’s initial and subsequent treatment o re gting alons. In 987, alons were onsideredso essential tat te Parties ould onl agree to a reeze in teir prodution and onsumption at istoriallevels. Just ve ears later, owever, in 992, te Parties agreed to pase tem out ompletel in developedountries b 994.



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Wile alons provide te learest example o te fexibilit o te

Parties and te wa industr stepped up to meet te allengespresented b te pase-out o ozone-depleting substanes, almost

ever use setor sowed similar eorts on beal o te Parties andinnovations b industr, and te onfuene o sientiall dened

need and industrial innovation allowed te Parties to take wide-rangingmeasures to ontrol additional emials and strengten te ontrols on

existing emials.

Man representatives o Governments, non-governmental organizations and te sientiworld worked togeter to advane te Protool, but te art o negotiation and persuasion also plaed aritial role. In partiular, te importane o te role plaed b te UNEP Exeutive Diretor at te time,Mostaa Tolba, annot be overstated. Possessing an expert knowledge o bot ozone siene and te

ozone ommunit, e ormed a network o relationsips tat ame togeter in inormal onsultationswitin a group o ke delegates tat e reerred to as “Friends o te Exeutive Diretor”. Members otis group, speaking in teir personal apait, were able to explore te sienti ats at teir disposaland test te limits o teir fexibilit, and tis was ruial to enabling te Parties to negotiate teir wato onsensus.

Smaller groups o Parties and non-governmentalorganizations also worked togeter to persuadeand ajole teir olleagues and superiors in teirapital ities in a manner tat ostered a sense oommunit and oused te group on teir ommongoals. In tat ligt, te Protool as it developed

an be seen as a onfuene not onl o poli andsiene, but also o individuals, ommitted to aommon pat, wo were willing to take risks toaieve te measures te believed to be urgentlneessar or environmental protetion.

Tis period was also notewort or te relianeo te Parties on te use o deisions, adopted atmeetings o te Parties, to lari te intent oertain Protool provisions and to advane teireorts to ensure adequate implementation. In tiswa, ertain ke elements o te Protool, su as te

proess or allowing and ontrolling exemptions,te requirements related to data reporting, andte approval o plans to enable Parties to get bak

into ompliane, were agreed b deision, rater tan b te time-onsuming proess o amendment.Altoug tis deision proess as proved to be a robust and eetive meanism in advaning teimplementation o te Protool, tere are some oasions, su as te reation o te Multilateral Fund,wen an amendment to te Protool is absolutel neessar.

Montreal1987

London1990

Vienna1995Copenhagen

1992

Montreal 1997

No Protocol

A b u n d a n c e

( p a r t s p e r

b i l l i o n )

0

5

10

15

20

1980 2000 2020 2040 2060 2080 2100Year



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V. ESTABLIShMENT OF ThEMULTILATERAL FUND

Te global nature o te ozone issue led te Protool’s original negotiators to onlude tat all ountrieso te world ad to be inluded witin te Protool’s ontrol regime. At te same time, te Protoolnegotiators understood tat, given teir limited ontribution to te problem, and also teir limitedabilit to divert sare resoures to deal wit it, developing ountries would need assistane i te wereto beome true partners in te struggle to protet te ozone laer. I tere was an doubt about teneessit or su assistane, te ats spoke or temselves: two ears ater te adoption o te Protool,ewer tan 0 out o over 40 developing ountries ad ratied its provisions.

Several ideas were disussed and investigated as to ow to provide te neessar assistane. Te developingountries elt strongl tat te osts inurred sould be borne b te developed ountries wi wereresponsible or te problem and tat unding sould be additional to traditional aid fows rater tandeduted rom tem. For teir part, te developed ountries were onerned about te potential ostso te pase out, te manner in wi osts would be assessed (weter te so-alled “inremental ost”sould be paid b grant or loan), and tat limits sould be set on te reation o an new institutions.Following a ear o disussions on tese and oter issues, te 990 London Amendment to te Protoolwas adopted. It inluded an agreement establising te Multilateral Fund wit several ke omponents,relating in partiular to its governane and its unding, as desribed in te ollowing setions.

A. Governane

Te Fund was to be supported b a seretariat, o-loated wit UNEP but diretl aountable to an Exeutivecommittee made up o seven developed ountries and seven developing ountries. Tis governanestruture aomplised several ke objetives. First, b o-loating te seretariat wit UNEP but retainingits independene in a poli ontext, te Parties and teir appointed Exeutive committee were providedwit diret ontrol over te Fund’s poliies. Seond, te balane o developed and developing ountrieson te Exeutive committee signalled a major departure rom te istori donor-driven nature o undingbodies tat existed at te time, and refeted te spirit o equalit tat ad ome to tpi and underpinte Montreal Protool engagements.

Tis spirit o equit was also strengtened troug a voting struture wi required, i onsensus ouldnot be reaed (a ontingen never enountered in te 7 ear istor o te Fund), a two tirds majorito bot te developed and te developing ountries. In addition, it was agreed tat ativities would be

prepared and implemented primaril b existing international agenies, inluding te World Bank, UNEP,te United Nations Development Programme (UNDP), and later, te United Nations Industrial DevelopmentOrganization (UNIDO). Finall, donor ountries were given some latitude to undertake bilateral projets.

B. contributions

Te agreement alled or additional ontributions to be made b developed ountries onl, so as tomeet, on a grant or onessional basis, te agreed inremental ost o ertain ativities needed to enablete developing ountries to ompl wit te Protool. Tis agreement embodied ke ompromises insu areas as te provision o additional resoures, inremental osts, and weter assistane was tobe provided in te orm o grants or loans (bot o wi would be allowed). Ativities eligible or

unding were speied in an indiative list o ategories o inremental osts. Following an initialapitalization o te Fund o some $240 million over te rst tree ears, te Fund as undergoneve replenisments, ea overing a tree ear period. Available unding as averaged approximatel$20 million per ear over te last 7 ears.



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VI. EVOLUTION OF ThEMULTILATERAL FUND

As te Multilateral Fund was a new endeavour wit ew, i an,omparable institutions to emulate, te entire enterprise ad to be

started rom srat wit onl te vision o te Parties to guide it. It ell tote rst cie Oer o te Multilateral Fund Seretariat, Omar El-Arini, to

ire sta and begin work on proposals or everting rom operational mattersto projet templates to enable te Fund’s Exeutive committee to arr out its duties.

Under is stead leadersip, and wit te elp o te rst tree airs o te Exeutive committee(Ilkka Ristimaki rom Finland, Juan Antonio Mateos rom Mexio and Eileen claussen rom te UnitedStates), ea o wom ad been ative in te negotiation o te Fund, te Fund developed orepoliies wi ave evolved to enable it to ae te omplex variet o work tat ad to be done.

A. Dening inremental osts

Te Protool states tat unding sould be given on te basis o agreed “inremental osts”, butte Parties did not dene tis term, or suggest ow it sould be applied to projets as diverse asonverting ailities manuaturing rerigerators, eliminating te use o a pestiide (metl bromide)on arms, and produing publi awareness materials. Over time, te Fund developed a lear denitiono inremental ost, wi, b and large, ensured tat te entit undertaking te projet at issue waslet, at ompletion, in a nanial sense, equivalent to were it was beore te projet was started.Wile te use o tis onept ad to be adapted to address dierent tpes o ativities, su as te

losure o plants produing ozone-depleting substanes, tis innovative denition o inremental ostwas soon a part o oter environmental treaties, and te ground breaking work perormed b teFund beame used extensivel in ontexts su as in te Global Environment Failit.

B. Developing a sstem based on preedent and equalit

Wile ea onversion projet was unique, over time te Fund developed ost norms or individualprojet tpes, and initiated a ost eetiveness regime to ensure tat te nite resoures availablewere used to get te optimum ozone protetion return or te mone spent. To balane te dierentsales o eonomies and ensure tat smaller ountries would ave equal aess to te Fund, speial ostnorms were developed or tem. Te ost eetiveness regime applied b te Exeutive committeeelped introdue a ig level o onsisten into te sstem and te resulting equalit o treatmentenabled all Parties to aieve ompliane. Tis stead ous sometimes ad te result o reognizingtat te redution o one tonne in one ountr – a small ountr – to ensure ompliane was asimportant as te redution o ,000 tonnes in anoter, mu larger, ountr were an amount o,000 tonnes was not ruial to tat ountr’s aievement o ompliane. In an ase tis ous asailitated a ver ig level o ompliane on te part o all developing ountries – bot large andsmall regardless o teir level o onsumption.

Finall, te Exeutive committee sougt to assure equitable treatment b agreeing not to undorganizations tat began operating wit ozone-depleting substanes long ater alternatives wereavailable. Tis poli ensured a more level plaing eld or rms tat ad taken a progressive deisionto onvert rom ozone-depleting substanes at an earl date.



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c. Enabling ompliane b transerring tenologies

Tenolog transer as been a ornerstone o te Fund’s suess. In order to enable ompliane, te Fundad to provide developing ountries wit newer, non ozone depleting tenologies. Over time, tis led toa tenologial revolution in several setors o te developing ountr eonomies. For example, dozenso developing ountries tat ad one produed rerigerators reliant on cFcs were given te tenologand te equipment to produe new rerigeration equipment, and over 50 developing ountries tatprodued cFc based oams were provided wit new equipment and training to produe to a level tatwould ast beome a new global standard.

In man ases, tis assistane enabled tem to ompete in a marketplae tat, during te 990s, wasbeoming mu more global. In addition, te new equipment b and large elped to produe produtstat were more energ eient, tereb ielding additional environmental benets; most important

rom te standpoint o te Protool, owever, was tat tis transer proess o tenolog and knowledgeas enabled Parties to eliminate teir reliane on ozone depleting substanes and ompl wit te goalso te Protool. Tus, te Protool and its Multilateral Fund stand as a testament to te at tat, witappropriate assistane, developing ountries are willing, read and able to beome ull partners in globaleorts to protet te environment.

D. Promoting sustainabilit b supporting national apait

Te Fund’s Exeutive committee was aware rom te outset tat te will o te developing ountries toompl was in man ases ompromised b teir lak o abilit to divert sare resoures to te ozoneeort. Aordingl, te committee abandoned te earl expetations o some Parties tat te developing

ountries would bear teir own administrative osts, and agreed to und te reation o national ozoneunits in tese ountries. Te benets o tis earl deision are inalulable. Sine agreeing to supportinstitutional strengtening, te Fund as elped reate national ozone units in 40 developing ountries.Te levels o unding provided or tis purpose var, depending on national onsumption o ozone-depleting substanes, but related unding is designed to ensure tat in even te smallest ountries atleast one ull time sta member is provided or and basi oe and ommuniation osts or ozone unitsare also overed.

Tese units ave been an invaluable asset, not onl in ensuring te eetive implementation o onversionprojets, but also in developing and pusing troug national laws and legislation to ensure appropriateontrol o ozone-depleting substanes. Witout tis assistane, wi amounts to $6 million per ear, it isunlikel tat te 240,000 tonnes o redutions in onsumption o ozone-depleting substanes logged to

date, or te reord level o ompliane reported under te Protool ould ave been aieved.

VII. cONTRIBUTION OF ThE GLOBAL ENVIRONMENTFAcILITy TO ThE MONTREAL PROTOcOL

Beore leaving te issue o support or ompliane, it is important to note te signiant ontributiono te Global Environment Failit to te aievement o te suess o te Montreal Protool. Inpartiular tat bod, under te leadersip o Moamed El-Asr, its rst cie Exeutive Oer andcair, agreed to support te pase-out eorts o ountries wit eonomies in transition, wi were nototerwise eligible or unding b te Multilateral Fund. Tis support enabled man o tose ountriesto aieve te ompliane goals o te Protool.



VIII. AchIEVEMENTS TO DATE OF ThEMONTREAL PROTOcOL REGIME

Te positive results aieved to date troug implementation o teProtool an be seen on several ronts. In terms o ooperation, te

Montreal Protool an boast a greater degree oglobal partiipation tan virtuall an oter United

Nations treat. In terms o perormane, as tings standtoda, developed ountries ave pased out te prodution

and onsumption o over 99 per ent o all te emials ontrolledb te Montreal Protool. Wit te assistane o te Multilateral Fund, b teend o 2005, developing ountries ad ad projets approved or te pasing outo 2,000 tonnes o onsumption and 56,000 tonnes o prodution, and adaieved a redution o 72 per ent rom teir istori level o onsumption oozone-depleting substanes. Furter, were te uture is onerned, te avealread agreed on projets designed to redue nearl 90 perent o te remainingemials tat must, under te Protool, be dealt wit b 200. In te proesso te pase-out, man ountries, bot developed and developing, ave exeeded expetations andmet teir pase-out targets beore te deadline. In terms o sienti results, global observations aveveried tat atmosperi and stratosperi levels o ke ozone-depleting substanes are going down,and it is believed tat wit ull implementation o all o te provisions o te Protool, te ozone laersould return to pre-980 levels b 2050 to 2075.

Tese results igligt ow dramatiall dierent te global environmental situation would ave beenwitout te ritial measures taken b te Parties to te Montreal Protool. As te art on page 7 sows,i te world ommunit ad not ated, global lorine levels would ave sot up. Instead we are nowseeing redutions rater tan inreases in lorine loading levels. Wat reall stands out, owever, iste resulting environmental and ealt benets. Wile te Protool’s assessment panels ave not madespei estimates o te number o aners, atarats and oter ealt issues tat are tereb avoided,te latest estimate b te United States Environmental Protetion Agen is tat, b te ear 265 ationsto protet te ozone laer will ave saved some 6. million lives in te United States alone, tat wouldave oterwise been lost to skin aner. Te also estimate tat eorts to protet te ozone laer willprodue an estimated US$4.2 trillion in soial ealt benets in te United States over te period 990–265. Moreover, beause ozone-depleting substanes are temselves global warming gases, te globalredution in ozone-depleting substanes rom peak 990 levels ad, b 2000, aieved a net integrated

redution in global warming gases o approximatel 25 billion tonnes o arbon dioxide equivalents. Tisis a uge number and it makes te Montreal Protool one o te prime global ontributors to te gtagainst global warming.

In 995, reognition o te importane o te ozone issue, and te ontribution o siene to tis eortto protet te globe ame in te orm o te Nobel Prize or cemistr, wi was awarded to SerwoodRowland, Mario Molina and Paul crutzen or teir pioneering work on ozone depletion. In addition,in 200, reognition o te Protool rom te politial side ame in te statement o United NationsSeretar General Ko Annan, tat “peraps te single most suessul international environmentalagreement to date as been te Montreal Protool, in wi States aepted te need to pase out teuse o ozone-depleting substanes.” Finall, te Montreal Protool is reognized in te United Nations2006 report on te Millennium Development Goals, under Goal 7, as a global suess stor or its work in

atalsing global ation to elp us redue te amount o emials damaging te ozone laer.



IX. chALLENGES AhEAD

Wile te results o te Protool to date are impressive, te at remains tat a great deal o additionalation will be essential to ensure tat te ozone laer remains sae or tis and uture generations.Most important, te Parties to te Protool will ave to maintain teir momentum to omplete te job. Indeed, between te beginning o 2007 and te end o 2009, developing ountries will ave toeliminate te last 20 per ent o teir prodution and onsumption o cFcs and alons, and te last5 per ent o teir onsumption o arbon tetraloride. Experiene as sown tat tis nal amountis alwas te ardest to pase out, and tis ase is no dierent, partiularl wen we realize tat temajorit o te remaining cFc onsumption is used or serviing millions o rerigerators and mobile aironditioners. Wile some projets ave alread been approved to deal wit tese soures, and otersare still in te proess o being approved, te pase-out o tese remaining tonnes will not be eas to

aieve.

Anoter allenge arises rom te ontinuing suess o te Protool itsel.Experiene demonstrates tat as te nal pase-out approaes, te inentiveor illegal trade migt inrease. Tis is partiularl true in areas were ontinuedprodution or non ontrolled uses is still allowed. Aordingl, te worldommunit must redouble its eort to deal wit tis issue.

Te pasing out o drolorofuoroarbons (hcFcs), wi also ontributeto global warming, is likel to prove a uge allenge or bot developed anddeveloping ountries. Te nal pase-out o tese emials, wi were aommon but transitional replaement or cFcs, ould require still more tenial

breaktrougs o te kind tat were observed earl in te pase-out proess.Wile mu progress as been made to pase out te use o te agriulturalumigant metl bromide, it is apparent tat te nal pase-out will not beeas and will require sustained eort rom te global ommunit. Finall, on te emial side, it willbeome more urgent to nd alternatives or te remaining use o alons in new airrames and militarequipment as stoks o alons begin teir inevitable derease over te oming ears.

Ke questions also remain about ow to deal, in an environmentall sensitive manner, wit te verlarge banks o ozone-depleting substanes urrentl in use sstems or inventories. Tese substantialstoks will, unless ated upon, eventuall be emitted over te oming deades. Finall, in relation toemial ontrols, te Parties to te Protool must be on te lookout or new emials wit te abilitto deplete te ozone laer, and new issues wi ould treaten te global ommunities ard won

gains. In tat regard, it is important to remember tat man ad believed te ozone issue to be solvedb te original 987 Montreal Protool agreement, onl to nd a sort time later tat te treat wassigniantl greater tan originall antiipated.

On te organizational side, te Parties also ae an administrative allenge in ensuring tat tesigniant national and organizational expertise built up to address te Montreal Protool issue isadapted and retained to meet urrent and uture needs. Indeed, te remarkable lessons learned underte Montreal regime wit regard to bot emial ontrols and management, as well as teir naning,sould be used to meet te new environmental allenges aed b te global ommunit.

Wile man allenges remain, it is oped tat te ontinuing eorts to protet te ozone laer willmove orward in te same spirit o dediation, ooperation and innovation tat araterized te

initial eorts, and tat te Protool will go on to aieve its goal o proteting te ozone laer or tisand uture generations.

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