7 Mobilisation 2: Pledging Funds for Patching the Hole

The international consensus on the need to preserve the ozone layer is reflected in the establishment of a Multilateral Fund (MLF) to support projects to eliminate ozone depleting substances. Between 1991 and March 2007 the MLF received contributions of about US$ 2,200 million from 49 developed countries (according to the United Nations scale of assessment).

To date expenditures of US$ 2,164 million have been approved to support some 5,500 projects in 144 “Article 5” Parties, out of the 191 Parties to the protocol. National Ozone Units (NOUs) have been established in 140 countries as government focal points for implementation of this multilateral environmental agreement. Projects supported by the MLF and completed through 2005 have eliminated the consumption of 190,625 ozone depletion potential (ODP) tonnes and have phased out production of more than 116,197 ODP tonnes.

Financial and technical assistance is provided in the form of grants or concessional loans and delivered through four implementing agencies: United Nation Environment Programme (UNEP), United Nations Development Programme (UNDP), United Nations Industrial Development Organization (UNIDO) and The World Bank. Up to 20 per cent of the contributions can be delivered through the Parties’ bilateral agencies in the form of eligible projects and activities. Funds are used for activities including the closure of ODS production plants and industrial conversion, technical assistance, information dissemination, training and capacity building of personnel aimed at phasing out the ODS used in a broad range of industrial sectors. The MLF Secretariat is based in Montreal, Canada.

Story ideas
How has implementation of this treaty impact­ed on small & medium sized enterprises?

Have jobs been created or lost as a result of the phase out?

How has ozone protect­ion affected busines­ses bottom line?

How has ozone protect­ion affected consumers’ pocketbook?

What companies have be­nefited from the techno­logy change, which ones have lost?

Stratospheric ozone, tropospheric ozone and the ozone “hole”

Although the Montreal Protocol has made considerable progress in the global drive to protect the ozone layer, the work is far from complete. There are still several issues that Parties to the protocol need to address before we can be sure the ozone layer is safe for present and future generations:
  • Momentum towards achieving a total phase-out must be sustained. All scientific analysis predicting the recovery of the ozone layer relies on the assumption of full compliance with the phase-out agreed. Between the beginning of 2007 and the end of 2009, developing countries will have to, for example, eliminate the last 15% of their production and consumption of CFCs and carbon tetrachloride. Experience shows that this last fraction will be the hardest to phase out, particularly because the majority of the remaining CFCs are to service millions of refrigerators and air conditioners;
  • Illegal trade continues and needs to be dealt with to ensure that continued legal ODS uses are not diverted to illegal uses;
  • Effective control mechanisms for new chemicals threatening the ozone layer are essential;
  • Continued monitoring of the ozone layer is needed to ensure the healing process is taking its expected course.
  • Control of “essential uses”, “critical uses” and “basic domestic needs” exemptions: These exemptions are a way of escape for countries to avoid the phase-out of ODSs if not properly controlled – to the extent that it might eventually have an impact on the recovery of the hole.

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