92nd meeting of the Executive Committee

This summary is intended to provide a brief overview of the decisions taken at the 92^nd meeting of the Executive Committee. The meeting report can be found athttp://multilateralfund.org/92/default.aspx

Introduction

The 92^nd meeting took place from 29 May to 2 June at the headquarters of the International Civil Aviation Organization (ICAO), Montreal, Canada and was attended by the representatives of 14 Executive Committee member countries and participants co‑opted from 23 other countries, implementing agencies (IAs), the Ozone Secretariat, and other observers. Ms. Annie Gabriel of Australia presided as Chair of the Executive Committee during the meeting.

Status of contributions and disbursements^[2] (decision 92/2)

As at 29 May 2023, the balance of the Multilateral Fund stood at US $494,941,381 in cash[3] and the cumulative fixed-exchange-rate-mechanism loss was approximately US $29.45 million. 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 following up with countries that had outstanding contributions for one triennium or more, and to report back at the 93^rd meeting. The Committee also noted with appreciation the discussions among the representatives of the Government of Israel, the Secretariat and the Treasurer and invited the Government of Israel to continue its internal discussions with a view to resume contributions to the Multilateral Fund.

Report on balances and availability of resources^[4] (decision 92/3)

IAs returned balances of US $2,508,725, including agency support costs, against completed projects to the Multilateral Fund. The Executive Committee requested IAs to disburse or cancel commitments not needed for completed projects and projects completed “by decision of the Executive Committee” and to return the balances at the 93^rd meeting. UNDP was requested to disburse or cancel commitments for projects completed over two years previously and to return the balances at the 93^rd meeting; and UNDP and UNIDO was requested to disburse or return to the 93^rd meeting the balances of completed projects funded using the additional voluntary contributions. The Committee also requested relevant IAs to return, and the Treasurer to transfer funding for several projects in three countries in view of the requests by their governments to change IAs.

Country programme data and prospects for compliance^[5] (decision 92/4)

111 countries submitted their country programme (CP) data reports for the year 2022, including 84 received after the issuance of the document. The Executive Committee approved the draft updated revised format of Section B of CP data reports and requested the Secretariat to update the practical manual for CP data reporting to reflect the approved changes to the reporting format and to provide additional information, to the extent possible, on the uses of HFC-23 reported in the column “other” in future documents on CP data and prospects for compliance. Relevant implementing agencies were requested to continue assisting the respective Governments in clarifying discrepancies between their CP and Article 7 data for 2021 and to report back to the 93^rd meeting.

Evaluation

Final report on the evaluation of regional networks of national ozone officers (decision 92/5)

The Executive Committee noted the final report on the evaluation of regional networks of national ozone officers.^[6] It also noted with appreciation the work of the OzonAction programme and its regional networks, and the contributions of the implementing and bilateral agencies, the Multilateral Fund Secretariat and the Ozone Secretariat to these regional meetings. The Committee requested that OzonAction implement the roadmap presented in the final report and report to the 96^th meeting on the progress made in its implementation. The Senior Monitoring and Evaluation Officer was also requested to present an update to the 97^th meeting on the implementation of this decision reflecting discussions of the Executive Committee at its 96^th meeting on the matter.

Desk study on the evaluation of enabling activities for HFC phase-down (decision 92/6)

The Committee noted the desk study on the evaluation of enabling activities for HFC phase-down.^[7] Article 5 countries, bilateral and implementing agencies, and the Secretariat were invited to consider the findings and lessons learned, and where applicable the suggestions made in the desk study (paragraph 186), when designing, implementing, reporting and assessing the results of future projects to support the implementation of the Kigali Amendment. The Senior Monitoring and Evaluation Officer was requested to follow up and report on the implementation of the suggestions to the 95^th meeting.

Draft terms of reference for an external assessment of the evaluation function of the Multilateral Fund (decision 92/7)

The Executive Committee approved the terms of reference for an external assessment of the evaluation function of the Multilateral Fund.^[8]

Programme implementation

Status reports and reports on projects with specific reporting requirements^[9] (decisions 92/8 to 92/18)

The Executive Committee noted that bilateral and IAs would report to the 93^rd meeting on 39 projects with implementation delays and 17 projects recommended for additional status reports and approved the recommendations on ongoing projects with specific issues. The Committee also requested the Secretariat to send letters to two Governments and relevant lead IAs, regarding possible cancellation of tranches of the HCFC phase-out management plans (HPMPs) for the two countries.[10]

For reports on projects with specific reporting requirements, the Executive Committee took note of or took decisions, to approve or follow up on specific issues, on, those related to: the HPMPs for 13 countries[11] and for the Pacific island countries; the HFC investment project for Jordan; the ODS disposal pilot project for Brazil; the HCFC demonstration project on low-global-warming-potential (GWP) alternative technologies for Saudi Arabia; the progress in the implementation of activities listed in decision 83/41(e) for China; and the project to control emissions of HFC-23 generated in the production of HCFC-22 in Argentina.

2023 consolidated project completion report^[12] (decision 92/19)

The Executive Committee requested bilateral and IAs to submit to the 93^rd meeting the outstanding project completion reports (PCRs) for multi-year agreements (MYAs) and individual projects and provide the reasons for failing to do so. Lead and cooperating IAs were urged to closely coordinate the finalization of their portion of PCRs to allow the lead IA to submit the completed PCRs in a timely manner. Bilateral and IAs were also requested to include relevant and useful information about the lessons learned and the reasons for any delays to enable the formulation of recommendations to improve future project implementation or replicate good practices. All those involved in the preparation and implementation of MYAs and individual projects were invited to consider the relevant lessons learned from PCRs when preparing and implementing future projects.

Business planning

Update on the status of implementation of the 2023–2025 consolidated business plan of the Multilateral Fund^[13]

The Executive Committee noted that the total value of activities submitted to the 92^nd meeting amounted to US $31,154,966 (including US $3,822,128 for HFC-related activities), including US $1,544,028 for project proposals not included in the 2023 business plans.

Tranche submission delays^[14] (decision 92/20)

28 out of 53 activities related to tranches of HPMPs that were due for submission to the 92^nd meeting were submitted on time. Relevant bilateral and IAs indicated that the late submission of the tranches of HPMPs due for submission at the 92^nd meeting would have no impact, or was unlikely to have an impact, on compliance with the Montreal Protocol, and that there was no indication that any of the countries concerned were in non‑compliance with the Montreal Protocol control measures. The Secretariat will send letters to the relevant Governments regarding the decisions on tranche submission delays.

Project proposals

Overview of issues identified during project review^[15]

Verification of compliance of selected low-volume-consuming countries with their HCFC phase-out management plan agreements (decision 92/21)

The Executive Committee noted the submissions by the relevant bilateral and IAs in their 2023 work programmes of and decided to consider, under agenda item 9(d) on projects recommended for individual consideration, the funding requests for verification reports for stage I or II of HPMPs for 17 countries. The Secretariat was requested to select from the 92^nd meeting onwards, in consultation with the bilateral and IAs, a sample of 20 per cent of the low-volume-consuming (LVC) countries with ongoing HPMPs for the purpose of verifying their compliance with the agreements. Bilateral and IAs acting as lead agencies were requested to include the related costs of verification in their work programmes submitted at the same meeting.

Request for funding additional activities to maintain energy efficiency in the servicing sector for low-volume-consuming countries, submitted as stand-alone projects (decision 89/6) (decision 92/22)

The Executive Committee decided to allow the bilateral and IAs to submit requests for activities referred to in decision 89/6(b) separately from HPMP tranche requests, including a revised Agreement, on the understanding that those activities were integrated into the ongoing tranche implementation plans and submitted 10 weeks in advance of the relevant Executive Committee meeting and that a progress report on the implementation of the activities would be included in the tranche progress reports associated with the requests for future tranches.

Bilateral cooperation^[16] (decision 92/23)

The Executive Committee requested the Treasurer to offset the costs of the bilateral projects approved at the 92^nd meeting in the amount of US $552,388 (including agency support costs) against the balance of the bilateral contribution of the Government of Australia for 2023 and in the amount of US $305,100 (including agency support costs) against the balance of the bilateral contribution of the Government of Germany for 2021-2023.

Approved projects (decisions 92/24-92/35)^[17]

Funding of US $29,253,988, including agency support costs was approved for: renewals of institutional strengthening (IS) projects for 31 countries^[18] (US $9,252,249); project preparations for stage III of HPMPs for two countries[19] (US $96,900); verification of compliance of 17 countries [20] with their HPMP Agreements (US $573,900); preparation for Kigali HFC implementation plans (KIPs) and/or HFC investment‑related activities for 6 countries[21] (US $970,140); new stages II/III of HPMPs for two countries[22] (US $4,809,185); tranches of HPMPs for 17 countries^[23] (US $12,460,855); stage I of the KIP for one country[24] (US $380,385); preparation for a pilot project on energy efficiency for one country[25] (US $33,900); a tranche of an approved HFC-23 emissions control plan for one country[26] (US $414,690); a HFC-related investment project for one country[27] (US $148,785) and an investment project on additional activities to maintain energy efficiency for the servicing sector under decision 89/6(b) for one country[28] (US $113,000).

Update to the report on end-user incentive schemes funded under the approved HCFC phase-out management plans to reassess the effectiveness of demonstration and pilot projects directed to end users, including updated results from the projects, the analysis of cost effectiveness, a discussion of how decision 84/84 had affected such projects, and other observations (decision 84/84(e)) (decision 92/36)

Following the introduction of document UNEP/OzL.Pro/ExCom/92/43 by the Secretariat and initial exchange of views, an informal group meeting for the members concerned was held to discuss the matter further. Subsequently, the Executive Committee decided to continue applying decision 84/84 in the consideration of end-user incentive schemes submitted for funding under the HPMPs except for technology demonstration projects with a limited number of end users or to end-user leakage-reduction programmes. End-user-related projects submitted for funding under KIPs may also be considered on a case-by-case basis. The Committee requested Article 5 countries and bilateral and IAs, when designing end-user incentive schemes, to consider factors that would contribute to the sustainability and scalability of the adoption of low-GWP alternatives by end users, such as potential energy-efficiency gains and opportunities for additional modalities and sources of funding, whenever possible and on a voluntary basis. The Secretariat was requested to update the present report, for the first meeting in 2028, to include updated project results, cost-effectiveness analysis, a discussion of the impact of the decision on such projects and other observations, so to allow the Committee to reassess the effectiveness and sustainability of such incentive schemes and demonstration projects. The Secretariat was also requested to develop, in collaboration with the bilateral and IAs, a system to record and report consistently on the phase-out/phase-down achieved through end-user projects and on energy-efficiency gains, where applicable, to be applied to any end-user projects approved from the 93^rd meeting onward.

Matters related to the Kigali Amendment to the Montreal Protocol

Development of the cost guidelines for the phase-down of HFCs in Article 5 countries

Analysis of the level and modalities of funding for HFC phase-down in the refrigeration servicing sector (decision 92/37)

Following discussions at previous meetings, document UNEP/OzL.Pro/ExCom/92/44 was introduced and the contact group constituted to continue considering the matter had reached consensus regarding the eligible incremental costs in the refrigeration servicing sector for stage I of the KIPs.

The Committee decided that Article 5 countries that had an average HFC consumption in the servicing sector during the baseline years of up to 360 metric tonnes would be provided funding, as shown in the table below, on the understanding that project proposals would still need to demonstrate that the funding level was necessary to achieve at least the 10 per cent of the Montreal Protocol HFC reduction target.

*Plus 20 per cent funding for countries committing to reduce consumption by 10 per cent of the average HFC consumption in the baseline years

For Article 5 countries with average HFC consumption above 360 metric tonnes and below 25,000 metric tonnes in the servicing sector, funding would be provided to be deducted from their starting point for aggregate reductions in HFC consumption, at a level up to US $5.10/kg on the understanding that project proposals would still need to demonstrate that the funding level was necessary to achieve at least the 10 per cent HFC reduction target. For those countries with consumption above 25,000 metric tonnes will be considered on a base-by-case basis. Further, the Executive Committee also decided that those countries which could achieve the 10 per cent reduction step in HFC consumption in line with the compliance schedule of the Montreal Protocol, could receive funding up to the level determined for LVC countries with average HFC consumption in servicing in the baseline years between 300 and 360 metric tonnes, on the understanding that they must include in their HFC phase-down plans, as a minimum, the requirements described in the previous paragraph.

Draft guidelines for funding the phase-down of HFCs, including consideration of operationalizing paragraph 24 of decision XXVIII/2 (paragraphs 233 and 268 of document UNEP/OzL.Pro/ExCom/91/72 and decision 91/64(a) and (b))

Following progress of discussions at previous meetings, the Executive Committee continued to discuss the matter after documents UNEP/OzL.Pro/ExCom/92/45 and 92/46 were introduced. The Committee considered the definition of small and medium-sized enterprises in the commercial refrigeration including a separate category for microenterprises with a consumption of 1 metric tonne or less.

Regarding the issue of the starting point for sustained aggregate reductions, the Committee reflected on the paper provided by the Secretariat and asked clarification questions on the methodology presented in the paper.

Following the report of the contact group, the Executive Committee agreed to pursue, at its 93^rd meeting, discussion of this agenda item, including the working text on the cost-effectiveness thresholds contained in annex XX to the meeting report.

Energy efficiency

Operational framework to further elaborate on institutional aspects and projects and activities that could be undertaken by the Multilateral Fund for maintaining and/or enhancing the energy efficiency of replacement technologies and equipment in the manufacturing and servicing sectors when phasing down HFCs in the categories set out in document UNEP/OzL.Pro/ExCom/89/12 in the context of implementing options 1 and 2 in table 3 of the document (paragraph 252 of document UNEP/OzL.Pro/ExCom/91/72) (decision 92/38)

Discussions continued from previous meetings based on document UNEP/OzL.Pro/ExCom/92/47. Following the report of the contact group, the Executive Committee requested the Secretariat to develop a report for consideration at the 93^rd meeting containing: any relevant additional activities beyond those listed in subparagraph (b)(i) of decision 91/65; information on additional costs and savings while implementing the activities, taking into account the payback associated with use of energy-efficient equipment and other benefits to the consumer; options for funding modalities in the Multilateral Fund as well as possible implications of their operation, including with respect to the aforementioned information, taking into account the parameters in paragraph 21 of document UNEP/OzL.Pro/ExCom/91/64; updated information on the role of other institutions addressing energy efficiency, where appropriate; and a proposed methodology for monitoring and reporting on the progress of these projects, taking note of relevant methodologies, where appropriate. The Committee also decided to support action through the Multilateral Fund to maintain and/or enhance energy efficiency when phasing down HFCs, without prejudice to funding levels.

Report on consultations with the secretariats of the Global Environment Facility and the Green Climate Fund and other relevant funding institutions on opportunities for sharing information on policies, projects and relevant funding modalities relating to maintaining and/or enhancing energy efficiency while phasing down HFCs (paragraph 259 of document UNEP/OzL.Pro/ExCom/91/72)

Continuing discussions started at the 91^st meeting the Executive Committee concluded its consideration of the report on consultations with the Secretariats of the Global Environment Facility and the Green Climate Fund and other relevant funding institutions contained in document UNEP/OzL.Pro/ExCom/92/48. The Committee also noted that the Secretariat would continue its consultations with the relevant institutions and would report to the Executive Committee any new information on these consultations on an annual basis as part of the report on Secretariat activities.

Report on the local installation and assembly subsector identifying to the extent possible the types of equipment and refrigerants that characterize that subsector and the challenges in transitioning to low-global-warming-potential alternatives (decision 91/39(b)) (decision 92/39)

Documents UNEP/OzL.Pro/ExCom/92/49 and Corr.1were introduced, and an exchange of views was held in the plenary. The Executive Committee noted the report, and general appreciation was expressed for the information provided on the key role of the local installation and assembly subsector in supporting transition to low-GWP technologies. Topics discussed included: the difficulty in distinguishing between enterprises in that subsector and those operating in the manufacturing and servicing sectors in terms of their consumption, that local installation and assembly subsector enterprises acted as a bridge between the manufacturers and the end users, and that they played a key role in facilitating the transition to low-GWP technologies; the current lack of relevant standards, regulations and components, which made it hard for this subsector to use those technologies; and the lack of technical capacity and low compliance awareness of these enterprises.

Following discussions in a contact group, the Committee invited Article 5 countries, through the bilateral and IAs, to provide to the Secretariat, on a voluntary basis, by 20 September 2023, information on the local installation and assembly subsector. The Secretariat was requested, taking into account the information provided by the Article 5 countries, to prepare a paper containing information on the types of activities that Article 5 countries could undertake, on the nature of the assistance required and on supply chain issues that needed to be resolved to address consumption in the local installation and assembly subsector in their KIPs for consideration at the 93^rd meeting; and to consider projects in the local installation and assembly subsector in the context of KIPs on a case-by-case basis.

Draft template for an Agreement for stage I of Kigali HFC implementation plans (decision 91/38(c))

Following the report of the contact group to consider document UNEP/OzL.Pro/ExCom/92/50, the Executive Committee agreed to pursue, at its 93^rd meeting, consideration of the draft template for an Agreement for stage I of KIPs and to use, inter alia, the working text contained in annex XXI to the meeting report as the basis for subsequent discussions.

Operational policy on gender mainstreaming for Multilateral Fund-supported projects: improved project requirements, including specific outputs and outcomes and related key performance indicators for the systematic application of the policy (decision 90/48(e)(i)) (decision 92/40)

The Executive Committee noted the report outlining the improved project requirements, outputs and outcomes and performance indicators for the systematic application of the operational gender mainstreaming policy of the Multilateral Fund contained in document UNEP/OzL.Pro/ExCom/92/51, and requested bilateral and IAs to include the mandatory requirements and performance indicators contained in annex XXII to the meeting report when submitting stages of multi-year agreement projects, such as HPMPs or KIPs, for consideration at the 94^th and subsequent meetings.

Results framework and a scorecard that fit the operations of the Multilateral Fund (decision 89/1(c)(i)) (decision 92/41)

Following the introduction of documents UNEP/OzL.Pro/ExCom/92/52 on a results framework that fits the operations of the Multilateral Fund and UNEP/OzL.Pro/ExCom/92/53 on a scorecard for the Multilateral Fund, the Executive Committee discussed the need to effectively gather information on the outcomes and outputs; how the results framework and the scorecard should be simplified to lighten the work of the Secretariat, and that only a limited number of indicators should be used. The two documents should be updated over time as lessons were learned during implementation.

Following a discussion and consultations in an informal group, the Committee noted the information provided relative to a results framework that fits the operations of the Multilateral Fund, contained in document UNEP/OzL.Pro/ExCom/92/52 and requested the Secretariat to develop a revised results framework and scorecard for consideration at the 93^rd meeting, taking into account the discussions at the 92^nd meeting.

The Committee also noted the communication tool for the achievements of the Multilateral Fund since its inception referred to in document UNEP/OzL.Pro/ExCom/92/53 and requested the Secretariat to disseminate the communication tool.

Draft report of the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol to the Thirty-fifth Meeting of the Parties

The Chief Officer introduced document UNEP/OzL.Pro/ExCom/92/54 which contained the draft report to the Meeting of the Parties and explained the new structure of the report and described the changes therein.

The Executive Committee agreed to authorize the Secretariat to finalize the report of the Executive Committee to the Thirty-Fifth Meeting of the Parties to the Montreal Protocol in light of the discussions held and decisions taken at the 92^nd meeting, and to submit it to the Ozone Secretariat following clearance by the Chair.

Report of the Sub-group on the Production Sector^[29] (decision 92/42)

The Sub‑group on the Production Sector (Australia (facilitator), Brazil, China, Cuba, Finland, Italy, Kenya, and the United States of America) met twice in the margins of the meeting and took a decision on one agenda item.

2020–2021 investigation of HCFC dealers in China (decision 91/71(b)(ii))

At the recommendation of the Sub-group, the Executive Committee noted the report on the investigation of HCFC dealers in China in 2020 and 2021, submitted by the Government of China, through the World Bank. It also invited the Government of China, through the World Bank, to include information on activities that the Government had undertaken or would undertake towards implementation of the recommendations contained in the investigation report in the progress report of the second tranche when the third tranche of the HCFC production phase-out management plan was submitted.

Other matters

Dates and venues of the 93^rd meeting of the Executive Committee^[30] (decision 92/43)

The Committee decided to hold the 93^rd meeting in Montreal, Canada, at the International Civil Aviation Organization, from 15 to 19 December 2023, instead of from 11 to 15 December 2023 as originally decided in decision 91/73(b).

HFC phase-down in advance of the Kigali Amendment targets (decision 92/44)

Presenting a draft decision thereon, the representative of the United States of America raised, for consideration by the Executive Committee, the possibility of approving, on a case-by-case basis, a phase down of HFCs that was more rapid than required under the Kigali Amendment. He explained that the Committee could follow the approach taken in relation to HCFC phase-out under decision 60/15 and that any accelerated phase down of HFCs would be entirely voluntary for Article 5 countries where there was a strong national level of commitment. The Executive Committee decided that proposals for projects that reduced HFC consumption in advance of Montreal Protocol targets could be considered on a case-by-case basis for countries that had a strong national level of commitment in place to support such reductions.

Attendance at the 92^nd meeting of the Executive Committee