Post meeting summary of the 80th meeting of the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol
Introduction
The 80th meeting of the Executive Committee, which took place in Montreal, Canada from 13 to 17 November 2017, was attended by the representatives of the 14 Executive Committee member Parties and by participants co‑opted from 28 other countries (see attached list). Mr. Paul Krajnik of Austria presided as Chair of the Executive Committee in 2017. Representatives of the Ozone Secretariat, implementing agencies (IAs), UNEP as the Treasurer, the Vice‑President of the Implementation Committee, and members of the Replenishment Task Force of the Technology and Economic Assessment Panel were also present. Non‑governmental organizations that attended as observers included representatives of the Alliance for Responsible Atmospheric Policy, the Environmental Investigation Agency, the Institute for Governance and Sustainable Development, the Kigali Cooling Efficiency Program, the Lawrence Berkeley National Laboratory, the Natural Resources Defense Council, and the Refrigerant Gas Manufacturers’ Association of India.
The agenda for the 80th meeting included among other items, the status of the Multilateral Fund, the final report of the evaluation of chiller projects, the draft monitoring and evaluation work programme, reports on projects with specific reporting requirements, the 2017 consolidated completion report, the 2018‑2020 consolidated business plan of the Multilateral Fund, UNEP’s Compliance Assistance Programme (CAP) budget, core unit costs for UNDP, UNIDO and the World Bank, and the draft report of the Executive Committee to the 29th Meeting of the Parties (MOP). Project proposals considered included inter alia the stage I or stage II of HCFC phase‑out management plans (HPMPs) for five countries and activities for the fast start implementation of HFC activities, namely enabling activities, stand‑alone investment projects, and project preparation.
Policy matters related to the Kigali Amendment were addressed including the status of additional contributions to the Multilateral Fund, the overall analysis of the surveys of ODS alternatives, the development of the cost guidelines for the phase‑down of HFCs, and key aspects related to HFC‑23 by‑product control technologies.
In the margins of the meeting, the Sub‑group on the Production Sector discussed matters regarding the HCFC production phase‑out management plan (HPPMP) for China.
The Committee took a total of 83 decisions, and approved projects and work programme activities for 52 countries with a value of US $56,751,401, plus US $9,740,029 in support costs for bilateral and implementing agencies[1]. In addition, the Committee approved funds from the additional voluntary contributions for fast start implementation of HFC activities in 61 countries with a value of US $11,671,610, plus US $817,013 in support costs for the bilateral and implementing agencies.
Financial matters
Status of contributions and disbursements (decision 80/1)
As at 14 November 2017, the balance of the Multilateral Fund stood at US $82,372,420. The loss on the fixed‑exchange‑rate mechanism (FERM) stood at approximately US $33.5 million since the inception of the mechanism in 2000.
Following informal discussions with regard to activities under bilateral cooperation and the use of the FERM, the Executive Committee requested the Secretariat to provide, for the consideration of the 81stmeeting, additional information on the transfer of funds by the Treasurer on behalf of governments contributing to bilateral projects.
The Executive Committee urged all Parties to pay their contributions to the Multilateral Fund in full and as early as possible and requested the Chief Officer and the Treasurer to continue to follow up with countries that had contributions outstanding for one triennium or more and to report back to the 81st meeting.
Report on balances and availability of resources (decision 80/2)
Bilateral and IAs returned balances of US $5,432,309 against completed projects to the Multilateral Fund. Bilateral and IAs were requested to return, no later than the 81st meeting, the balances of all projects completed over two years previously and to disburse or cancel commitments not needed for completed projects and projects completed “by decision of the Executive Committee”, and to return the balances to the 81stmeeting.
Accounts of the Multilateral Fund
Final 2016 accounts (decision 80/3)
The Executive Committee noted the final financial statements of the Multilateral Fund as at 31 December 2016[2], which had been prepared in accordance with the International Public Sector Accounting Standards (IPSAS). The Executive Committee requested the Treasurer to record in the 2017 accounts of the Multilateral Fund the differences between the IAs provisional 2016 financial statements and final 2016 statements.
Reconciliation of the 2016 accounts (decision 80/4)
The Executive Committee noted the reconciliation of the 2016 accounts[3] and requested the Treasurer and relevant IAs to carry out a number of adjustments and related actions. The Committee noted the 2016 outstanding reconciling items that would be updated prior to the 82nd meeting and the standing reconciling items.
Budgets of the Fund Secretariat (decision 80/5)
The Executive Committee noted the document on the approved 2017, revised 2018 and 2019, and proposed 2020 budgets of the Fund Secretariat[4], the reallocation of expenditure not recorded in the 2016 accounts to the 2017 approved budget, and the return of funds from the 2016 approved budgets for the Fund Secretariat and the monitoring and evaluation work programme to the Multilateral Fund.
The Executive Committee approved the revised 2018 and 2019 budgets, and also the proposed 2020 budget.
Country programme data and prospects for compliance[5] (decision 80/6)
One hundred and thirty‑nine countries had submitted their country programme (CP) implementation reports for the year 2016, out of which 120 countries had used the web‑based system. The Executive Committee requested the Secretariat to send letters to the governments of countries with outstanding 2014, 2015 and 2016 CP data reports, urging them to submit the reports immediately. Relevant IAs were requested to continue assisting four countries to clarify data discrepancies between CP data and Article 7 data and to report back to the 81stmeeting.
Evaluation
Final report on the evaluation of chiller projects (decision 80/7)
The Executive Committee noted the final report on the evaluation of chiller projects[6] and invited the bilateral and IAs to apply, when appropriate, the lessons learned from the evaluation of chiller projects.
Desk study on the evaluation of the refrigeration servicing sector (decision 80/8)
The Executive Committee noted the desk study for the evaluation of the HCFC phase‑out in the refrigeration servicing sector,[7] and invited the bilateral and IAs to apply, when appropriate, the findings and recommendations of the desk study during the implementation of stage II of HPMPs and projects for phasing down of HFCs.
Monitoring and evaluation work programme for 2018 (decision 80/9)
The monitoring and evaluation work programme for the year 2018[8] was approved at a budget of US $174,780 to carry out the second phase of the evaluation of the refrigeration servicing sector (field missions); the desk study for the evaluation of HPMP preparation activities to assist with the implementation of the Kigali Amendment; the desk study for the evaluation of gender mainstreaming; and for the Senior Monitoring and Evaluation Officer (SMEO) to work with relevant bilateral and IAs to submit all outstanding project completion reports (PCRs) related to multi-year agreements (MYAs) and individual projects to the 81stand 82nd meetings. The SMEO would submit to the 81stmeeting the terms of reference for the desk study for the evaluation of HPMP preparation activities to assist with the implementation of the Kigali Amendment.
Programme implementation
Status reports and reports on projects with specific reporting requirements (decisions 80/10 ‑ 80/31)
The Executive Committee considered the reports on projects with specific reporting requirements[9] including, progress reports related to stage I of the HPMPs for thirteen countries,[10] demonstration projects for low‑GWP alternatives to HCFCs and feasibility studies for district cooling, financial audit reports for the CFC production, halon, PU foam, process agent II, refrigeration servicing and solvent sector plans in China, ODS waste disposal projects for Mexico and the Europe and Central Asia region, the sector plan for methyl bromide phase‑out in China, and ongoing chiller projects. The Committee also considered a request for a change of implementing agency for projects in Argentina. The Committee noted the reports on the implementation of the projects and made a number of decisions to follow up on specific issues.
2017 Consolidated project completion report[11] (decision 80/32)
The Executive Committee urged bilateral and implementing agencies to submit to the 81stmeeting the PCRs for MYAs and individual projects that were due, and if they were not going to submit them, to provide the reasons for not doing so and the schedule for submission. Lead and cooperating agencies were urged to closely coordinate their work in finalizing their portion of PCRs to allow the lead IAs to submit the completed PCRs according to schedule. The Executive Committee requested bilateral and IAs to enter clear, well written and thorough lessons when submitting their PCRs, and invited all those involved in the preparation and implementation of MYAs and individual projects to take into consideration the lessons learned from PCRs, if relevant, when preparing and implementing projects.
Business planning
Update on the status of implementation of the 2017–2019 consolidated business plan of the Multilateral Fund
The Executive Committee noted the update on the implementation of the 2017–2019 consolidated business plan of the Multilateral Fund.[12]
Tranche submission delays (decision 80/33)
Twenty‑eight out of 69 activities related to tranches of HPMPs that were due for submission to the 80th meeting were submitted on time.[13] Relevant IAs indicated that the late submission of the tranches of HPMPs due for submission at the third meeting of 2017 would have no impact or was unlikely to have an impact on compliance, and that there had been no indication that any of the countries concerned were in non‑compliance with the Montreal Protocol control measures. The Secretariat would send letters to the 24 countries with delayed tranche submissions inviting them to submit their outstanding tranches of HPMPs to the 81stor 82nd meeting.
2018‑2020 business plans (decisions 80/34 ‑ 80/39)
The Executive Committee endorsed the 2018‑2020 consolidated business plan of the Multilateral Fund[14] which had been adjusted based on the proposals made by the Secretariat,[15] the addition to the 2018 business plan of the HPMPs and IS projects from the 2017 business plan that had been deferred at the 80th meeting; the decisions taken and the values for HPMPs approved or revised in principle at the 80th meeting; by removing activities related to stage III of HPMPs and project activities related to one country; by adjusting the agency support cost for HFC enabling activities to seven per cent of the project costs; and by prorating, pursuant to any decision taken by the 29th MOP on the level of replenishment of the Multilateral Fund for the 2018–2020 triennium, new HCFC and HFC activities in order to reach the total budget for the 2018–2020 business plan.[16] The endorsement denoted neither the approval of the projects identified therein, nor their funding or tonnage levels.
Bilateral and implementing agencies were requested to include activities under stage II of the HPMPs for Mauritania and the Syrian Arab Republic in their business plans. The Executive Committee decided that Germany’s 2018‑2020 business plan should be reconsidered at the 81stmeeting in the light of the bilateral activity allocation for the 2018–2020 triennium (decision 80/35(b)). Performance indicators were approved for UNDP, UNEP, UNIDO and the World Bank[17] ((decisions 80/36(b), 80/37(b), 80/38(b), and 80/39(b)).The Executive Committee requested the Secretariat to submit to the 81stmeeting a document on the implications for Multilateral Fund institutions in terms of expected workload in the coming years, including in relation to the Kigali Amendment for the phase‑down of HFCs.
Project proposals
Deadline for submission of projects over US $5 million (decision 80/40)
The Executive Committee requested bilateral and implementing agencies to submit projects with a cost exceeding US $5 million, excluding agency support costs and irrespective of the level of funding requested of the Multilateral Fund, no later than 12 weeks in advance of the Executive Committee meeting at which they were to be considered, in line with decision 20/7(a).
Projects funded from regular contributions
The Executive Committee approved investment projects and work programme activities for 52 countries at a total value of US $46,888,401, plus support costs of US $3,077,219. The costs of the bilateral projects approved at the 80th meeting were offset against the balances of bilateral contributions of two contributing countries (decision 80/45(a)).
HCFC phase‑out activities
The Executive Committee approved stage I of the HPMP for Mauritania and stage II of the HPMPs for Kenya, Peru, the Philippines, and Timor Leste with total funding approved in principle of US $7,446,446 including support costs.[18] A total of US $45,095,141, including support costs, was provided for tranches of HPMPs or stage I/stage II of HPMPs for 20 countries including the first tranches of the new stage I/stage II of HPMPs for five countries. Funding amounting to US $268,800, including support costs, was provided for verification activities for stage I of the HPMP for eight countries.[19]
Institutional strengthening
The Committee approved the extension of IS projects for 30 countries[20] at an amount of US $2,182,595 including support costs.
UNEP’s Compliance Assistance Programme (CAP) (decision 80/55)
The Executive Committee approved the 2018 CAP budget at a level of US $9,863,000, plus agency support costs of eight per cent (US $789,040).
The Executive Committee requested UNEP to provide a final report to the 81st meeting on the review of the overall structure of the CAP and its operations and regional structure in addressing emerging needs and new challenges in Article 5 countries, and a final report to the 82nd meeting on the four global activities (i.e. national ozone officer training programme, refrigerant drivers licence programme, global training programme for the refrigeration servicing sector, and ODS management in the fisheries sector) which were identified in the 2016–2018 three‑year rolling strategy, providing details on the overall cost, achievements and outputs and how these had contributed to the compliance for Article 5 countries within the CAP mandate, in line with decision 75/38(c)(i).
UNEP was requested to continue to submit an annual work programme and budget for the CAP, providing detailed information on activities for which global funds, extending the prioritization of funding between CAP budget lines so as to accommodate changing priorities, and providing details on the reallocations made in its budget pursuant to decisions 47/24 and 50/26, reporting on the current post levels of CAP staff and informing the Executive Committee of any changes thereto, particularly with respect to any increased budget allocations; and providing a budget for the year in question, and a report on the estimated costs incurred in the previous year.
2018 core unit costs for UNDP, UNIDO, and the World Bank[21] (decision 80/56)
The Executive Committee approved core unit funding for 2018 for UNDP of US $2,069,385, UNIDO of US $2,069,385, and the World Bank of US $1,735,000, and noted with appreciation, that the World Bank’s core unit operation was again below its budgeted level and that the World Bank had returned unused balances at the 80th meeting. The Committee also noted the use of the revised format for reporting administrative costs by UNDP, UNIDO and the World Bank, pursuant to decision 79/41(e).
Matters related to the Kigali Amendment to the Montreal Protocol
Status of additional contributions to the Multilateral Fund[22] (decision 80/74)
As of 14 November 2017, 11 non‑Article 5 countries had paid their additional voluntary contributions to provide fast‑start support for HFC phase‑down for a total value of US $14 million. The Executive Committee noted with appreciation that 11 non‑Article 5 countries[23] had paid their pledged additional voluntary contributions to provide fast‑start support for HFC phase‑down. The Treasurer would report again on the status of the additional contributions received for fast‑start support separately from other pledged contributions to the Multilateral Fund at the 81st meeting.
HFC‑related project proposals funded from additional contributions
The Executive Committee approved US $12,488,623 for HFC‑related activities from the additional voluntary contributions of a group of non‑Article 5 countries for activities related to fast‑start implementation of HFC phase‑down.
Enabling activities
Funding for enabling activities was approved for 59 countries[24] at a total amount of US $8,270,000, plus agency support costs of seven per cent. The Executive Committee requested the Treasurer, in consultation with the Secretariat, to offset funding to relevant bilateral agencies and transfer funding to relevant IAs from the additional voluntary contributions as soon as the total amount of funding was available to cover all such activities (decision 80/41). The costs of the bilateral projects for enabling activities for seven countries would be offset against the additional voluntary contributions of two contributing countries (decision 80/45(b)).
HFC‑related investment projects (decision 80/42)
The Executive Committee approved US $3,131,610 for implementation of the first stand‑alone HFC investment project for the conversion of a domestic refrigerator manufacturing facility from HFC‑134a to isobutane as a refrigerant and conversion of a compressor manufacturing facility from HFC‑134a‑based compressors to isobutane‑based compressors in Bangladesh (decision 80/42(a)).
Funding was also approved for the preparation of six stand‑alone HFC investment projects in the refrigeration sector (Dominican Republic, Ecuador, Mexico, Lebanon, Thailand, and Zimbabwe) and two in the foam sector (China and Egypt) (decision 80/42(b)).
Preparation of HFC‑23 demonstration projects (decision 80/43)
The funding request was approved for the preparation of a technology demonstration project to convert HFC‑23 by‑product to valuable organic halides by reaction with hydrogen and carbon dioxide in China.
Funding requests not approved
Seven requests for funding for preparation of HFC stand‑alone investment projects and one funding request for preparation of an HFC‑23 demonstration project were not approved, and three HFC stand‑alone investment projects were deferred to the 81stmeeting (Argentina, Colombia and Mexico).
Overall analysis of the results of the surveys of ODS alternatives (decision 80/75)
The Executive Committee noted the overall preliminary analysis of the surveys of ODS alternatives submitted by 119 Article 5 countries[25] and requested bilateral and IAs to use the findings and the lessons from the results of the surveys of ODS alternatives while undertaking enabling activities, with particular attention to strengthening data collection and reporting of HFCs and HFC blends. Bilateral and IAs were requested to return balances related to the completed surveys of ODS alternatives no later than the 82nd meeting, and to return balance to the 81stmeeting from surveys that had not been submitted to the 80th meeting,[26] in line with decision 79/43.
Development of the cost guidelines for the phase‑down of HFCs in Article 5 countries (decision 80/76)
Following discussions in a contact group, the Executive Committee decided to include in the draft template of the cost guidelines for the phase‑down of HFCs, text related to sustained aggregate reductions in line with paragraph 19 of decision XXVIII/2; text related to the eligibility of Annex F substances subject to high‑ambient‑temperature exemptions, in line with paragraph 35 of decision XXVIII/2; for the production sector, the categories of costs in sub‑paragraph 15(b) of decision XXVIII/2; and for the refrigeration servicing sector, the categories of costs in sub‑paragraph 15(c) of decision XXVIII/2.
The Executive Committee would continue to use the draft template[27] and the list of outstanding elements for further discussion[28] as the working documents at the 81stand future meetings, noting that additional elements could be added as required.
The Secretariat, in cooperation with bilateral and IAs, would prepare a preliminary document for the 82nd meeting, on all aspects related to the refrigeration servicing sector that support the HFC phase‑down, taking into account previous policy and other documents, the work undertaken by bilateral and IAs, existing capacities in Article 5 countries, and the minimum information needed for the development of training and competency‑based certification programmes and modules for service technicians and customs officers for the transition to alternatives.[29]
Key aspects related to HFC‑23 by‑product control technologies (decision 80/77)
The Executive Committee noted the submission by the Governments of Argentina and India of the preliminary data on HCFC‑22 swing plants in their countries[30] and invited all relevant HCFC‑22‑producing Article 5 countries to provide to the Secretariat, on a voluntary basis, information on the elements described in paragraph (e) of decision 79/47 by 1 December 2017.
Report of the Executive Committee to the 29th Meeting of the Parties to the Montreal Protocol[31] (decision 80/78)
The Executive Committee authorized the Secretariat to finalize the report of the Executive Committee to the 29th MOP in the light of the discussions held and decisions taken at the 80th meeting and, following clearance by the Chair, to submit it to the Ozone Secretariat.
Production sector[32]
The Sub‑group on the Production Sector (Argentina, Australia (facilitator), Austria, China, Germany, Lebanon, Mexico and the United States of America) met in the margins of the 80th meeting on a number of matters regarding the phase‑out of HCFC production in China.
2016 verification report on HCFC production in China (decision 80/79)
The Executive Committee requested the World Bank to verify, in the 2017 verification exercise to be conducted in 2018, that two HCFC production lines for which closure contracts had been signed had been dismantled and the key equipment had been destroyed. The World Bank was also requested to verify, on a one‑time basis, that two newly established HCFC‑142b production lines were vertically integrated with the production of downstream facilities and all HCFCs produced in the new lines would be for feedstock use. Reports of future verification exercises would include the status of HFC‑23 that had been stored in the previous years, including the amounts incinerated, sold and vented. The penalty clause in the HPPMP Agreement was applied on the basis that 887.64 metric tonnes of compensated HCFC production capacity had been redirected towards feedstock production by one enterprise; China would return the amount of US $133,146 to the Multilateral Fund.
Stage I of the HPPMP for China (decision 80/80)
The Executive Committee decided to approve, upon receipt of a formal request, extension of implementation of stage I of the HPPMP to 31 December 2018. In this regard the World Bank was requested to return the balances from stage I of the HPPMP and to submit a project completion report to the first meeting in 2019, and to agree on a contingency amount of up to US $40,000 for coordination activities, on the understanding that there would not be any further increase in the planned expenditure for technical assistance activities unless otherwise approved by the Executive Committee. The Secretariat would work with the Government of China through UNDP and the World Bank, to develop, by the 81stmeeting, a financial reporting format for annual project management unit expenditures in relation to the production and consumption sectors.
Stage II of the HPPMP for China (decision 80/81)
The Executive Committee deferred consideration of stage II of the HPPMP and would welcome the submission to the 81stmeeting of a revised project proposal that took into account the discussions during the 79th and 80th meetings, in particular in relation to the front‑loading of tranches.
Other matters
Special situation of Dominica (decision 80/82)
The Executive Committee approved the provision, on an exceptional basis, of a sum of US $20,000 as additional emergency assistance for institutional strengthening for Dominica, taking into consideration the circumstances facing the national ozone unit after the devastation of the country’s infrastructure by a hurricane in September 2017. UNEP would present, to the 81st meeting, a strategy and action plan to assist the country in returning to its pre‑hurricane implementation levels.
Dates and venues of the 83rd and 84th meetings of the Executive Committee (decision 80/83)
The 83rd and 84th meetings of the Executive Committee will be held in Montreal, Canada, from 27 to 31 May 2019 and from 18 to 22 November 2019, respectively.
Report of the 80th meeting
A complete record of all decisions made at the 80th meeting can be found in the “Report of the Eightieth Meeting of the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol” (UNEP/OzL.Pro/ExCom/80/59) which is published on the Multilateral Fund’s website (www.multilateralfund.org) and available in Arabic, Chinese, English, French, and Spanish.
Annex I ‑ Attendance at the 80th meeting of the Executive Committee
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Executive Committee Members |
Co‑opted countries |
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Non‑Article 5 |
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Australia |
Canada |
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Austria (Chair) |
Finland, Norway, Sweden and Switzerland |
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Belgium |
Netherlands (the) |
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Germany |
France, Italy and the United Kingdom of Great Britain and Northern Ireland (the) |
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Japan |
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Slovakia |
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United States of America (the) |
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Article 5 |
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Argentina |
Brazil, Colombia and Uruguay |
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Bosnia and Herzegovina |
Albania, Armenia and Montenegro |
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Cameroon |
Comoros and Senegal |
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China |
India, Malaysia and Samoa |
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Lebanon (Vice Chair) |
Bahrain and Kuwait |
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Mexico |
Cuba, Grenada, Haiti and Peru |
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Nigeria |
Egypt and Zimbabwe |
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