Chair Statement to MOP29

Statement by the Chair of the Executive Committee of the

Multilateral Fund for the Implementation of the Montreal Protocol to the

Joint Eleventh meeting of the Conference of the Parties to the Vienna Convention and

29th Meeting of the Parties to the Montreal Protocol

Montreal, 20-24 November 2017

Mr. President, distinguished delegates.

On behalf of the Executive Committee of the Multilateral Fund, I am pleased to report to the Parties on the relevant decisions taken since the 28th meeting of the Parties in 2016.

Mr. President, in my statement today I will share some of the significant achievements during the reporting period focusing on actions related to HCFC phase-out and those in respect of the Kigali Amendment. I draw your attention to document 29/6 which includes full information on policy matters related to the Kigali Amendment; other policy matters; projects, their implementation and monitoring; and business planning, financial and administrative matters.

In the period under review, the Committee continued its intensive work on monitoring the implementation of HCFC phase-out management plans, referred to as HPMPs, and of an HCFC production phase-out management plan, referred to as an HPPMP. Article 5 countries are now focussing on the 35 per cent reduction target for HCFC consumption and production by 1 January 2020 and beyond. The number of countries with an approved HPMP has increased to 144 following the approval of stage I of an HPMP for Mauritania and South Sudan. In addition, thirty countries now have an approved stage II of an HPMP.[1]Only one country does not have an approved HPMP.[2]The full implementation of the HPMPs approved until now will address about 60 per cent of the total baseline for HCFC consumption of Article 5 countries including almost all HCFC consumption in the foammanufacturing sector and a significant amount in the air-conditioning manufacturing sector. Moreover, in approving HPMPs, the Committee continued to give priority to the introduction of lowGWP technologies to the extent possible. With respect to servicing, all countries are continuing to address the refrigerationservicing sector as part of their HPMPs.

The Executive Committee has addressed a number of matters related to the Kigali Amendment.

I am pleased to report that the Executive Committee accepted, with appreciation, the additional contributions to the Fund announced by a number of non-Article 5 Parties to provide fast-start support for implementation of the Kigali Amendment. As at 14 November 2017, the total income to the additional contributions pledged amounted to over US $14 million.Of the additional funds received, US$12.5million were approved for the HFCrelated projects comprising enabling activities, project preparation, and one standalone HFC investment project.

In response to the decision XXVI/9 of MOP, the Executive Committee commissioned surveys of ODS alternativesin 127 countries. With respect to HFCs and HFC blends, the results of surveys in 119 countries indicate an overall annual growth rate for the period 2012 to 2015 of about 22 per cent. The majority of consumption was found to be in the refrigeration and airconditioning sector with a small amount in the foam sector. Considering the wealth of information in the surveys, bilateral and implementing agencies were requested to use the findings and the lessons from the results when undertaking enabling activities, with particular attention to strengthening data collection and reporting on HFCs and HFC blends. The experience acquired by countries in completing the survey and the lessons learned will help countries develop data-gathering systems with a view to establishing their HFC baselines. The Committee has requested the Secretariat to prepare an addendum to the ODS alternative surveys report to provide information and data on nonHFC alternatives.

The Executive Committee agreed to submit cost guidelines for funding the phasedown of HFC consumption and productionto the 30th MOP and to finalize the guidelines as soon as possible thereafter, taking into account the views and input provided by the Parties.

At present, the template of the draft guidelines includes the principles agreed in decisionXXVIII/2 including flexibility in implementation; the cut-off date for eligible capacity; second and third conversions; sustained aggregate reductions in HFC consumption and production; categories eligible for incremental cost in the consumption manufacturing sector, the production sector and the refrigeration servicing sector; and eligibility of Annex F substances subject to high-ambient-temperature exemptions.

The Committee approved guidelines for the submission of requests for enabling activities and decided to prioritize the additional contributions for such requests.Subsequently it approved total funding of US $8.85 million, including support costs, from the additional contributions for 59countries to undertake a range of activities to help their national ozone units to fulfil their initial Kigali Amendment obligations. As per the guidelines, activities may consist of, but are not limited to, those to facilitate and support the early ratification of the Kigali Amendment, the initial activities identified in paragraph 20 of decision XXVIII/2, and national strategies.

With regard to institutional strengthening, the Executive Committee decided to consider increasing funding for institutional strengthening at a future meeting in accordance with paragraph 20 of decision XXVIII/2.

In order to gain experience in the incremental capital costs associated with the phase down of HFCs, the Executive Committee agreed to consider HFCrelated projects in the consumption manufacturing sector.The first HFC investment project was approved at a cost of US$3.35million for a domestic refrigeration manufacturing facility in Bangladesh to convert from HFC-134a to isobutane. Furthermore,total funding of US$256,800was approved for the preparation of six additional investment projects to eliminate the use of HFCs in the domestic and commercial refrigeration sectors, and two investment projects in the polyurethane foam sector. Funding for these projects was provided through the additional contributions to the Multilateral Fund.

As regardsrefrigeration servicing, the Fund Secretariat will prepare a document on all aspects related to the refrigeration servicing sectorthat support the HFC phase down.

Following consideration of the matter of emissions of HFC-23 as a by-product from the production of HCFC-22, the Executive Committee agreed to consider possible cost-effective options for compensation for HCFC22 swing plants to allow for compliance with the HFC-23 by-product control obligations. The Committee commissioned, through the Secretariat,an independent evaluation of costeffective and environmentally sustainable options for HFC23 destruction from HCFC-22 production facilities. Furthermore, implementing agencies were invited to submit proposals for feasible technology demonstration for HFC-23 by-product mitigation or conversion technologies. Funding has already been approved for the preparation of one technology demonstration project to convert HFC23 byproduct to valuable organic halides at a cost of US $32,100.

In the context of discussions on business planning for 2018-2020, the Executive Committee requested the Secretariat to prepare 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.

IMPLEMENTING AGENCIES

I would like to briefly address the main achievements of the implementing agencies of the Multilateral Fund during this reporting period

UNDP

In 2017, UNDP continued to assist 47 countries with the implementation of HPMPs and assisted 18 countries in preparing their stageII of HPMPs. UNDP started the implementation of stage II of the HPMP for another nine countries and four countries are expected to submit their requests for stage II in 2018 and beyond. UNDP has assisted a number of Article 5 countries to undertake demonstrations of climate friendly and energy-efficient alternative technologies to HCFCs, and feasibility studies on district cooling, and assisted 11 Article 5 countries to undertake surveys of ODS alternatives. In addition, in support of the recently approved Kigali Amendment, UNDP assisted 10 countries to request funding for enabling activities to support the early ratification of the Kigali Amendment and has provided support to another three countries to develop stand-alone investment projects to phase down the use of HFCs through replacement with suitable lower GWP technologies.

UNEP

UNEP OzonActionis currently assisting 102 Article 5 countries with the implementation of HPMPs and 104 countries with institutional strengthening projects. The OzonAction Compliance Assistance Programme (CAP) assists all 147 Article 5 Parties to comply with their commitments through the provision of CAP services,the unique regional networks of ozone officers, and the clearinghouse together with capacity building of ozone officers, refrigeration technicians and customs officers. Recent areas of focus include standards, certification, safe refrigerant management, licensing and quota systems, and high ambient temperature issues. This year, UNEP with partners organised the first international conference on ODS management in the fishing sector and strengthened partnerships with expert associations to develop capacity building and training tools in refrigerant management. UNEP assisted 79 countries to undertake the nonODS alternatives surveys and initiated activities for all national ozone officerto prepare for the Kigali Amendment.

UNIDO

As part of its 50th anniversary celebrations, UNIDO organized a Third Donor Meeting which included the “Planet Panel Discussion” that addressed the latest challenges and new ways forward vis-à-vis the Montreal Protocol and its Kigali Amendment, and issued several publications and video materials featuring the work of UNIDO. UNIDO also hosted an expert group to discuss the challenges and ways forward for ratification of the Kigali Amendment and facilitated dialogue amongst the 55countries attending.UNIDO is currently implementing HPMPs in 74 countries, including six stage II of HPMPs approved since the 28th MOP. Seven demonstration projects on low-GWP alternatives to HCFCs and two feasibility studies on district cooling are at advanced stage of implementation. Surveys on ODS alternatives for 27 countries as well as two ODS destruction projects have been successfully completed providing valuable information to the Executive Committee. UNIDO is initiating the implementation of HFC enabling activities in 17 countries.

World Bank

On occasion of the 30thAnniversary of the Montreal Protocol, the World Bank sees it opportune to highlight cumulative achievements of its client countries through Multilateral Fund assistance.By the end of 2016, World Bank implemented projects have resulted in reductions of 330,000 ODP tonnes of consumption and production of ozone depleting substances in exchange for more than US$1 billion in grants.The majority of the Bank’s Montreal Protocol client countries have approved stage II of HPMPs that will eliminate 5,700 ODP tonnes of consumption, equivalent to 31.8 million tons of CO2 avoided annually. Finally, last week three World Bank client countries received financial support to enable Kigali Amendment ratification and one country received project preparation for a HFC investment project in the commercial refrigeration sector.

Mr. President, distinguished delegates.

I wish to thank everyone here today for their strong commitment and dedication to the implementation of the Montreal Protocol. In this respect, I would like to take this opportunity to address the Chair and members of the 2016 Executive Committee and the members of the 2017 Executive Committee, the Fund Secretariat, and the bilateral and implementing agencies, and express my sincere thanks to them for their hard work and commitment.

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[1] Angola, Argentina, Armenia, Brazil, Chile, China, Colombia, DominicanRepublic, Egypt, Guyana, India, Indonesia, IslamicRepublic of Iran, Jordan, Kenya, Kyrgyzstan, Lebanon, Malaysia, Mexico, Republic of Moldova, Oman, Pakistan, Panama, Peru,. Philippines (the), Sudan, Timor Leste, Uruguay, the BolvarianRepublic of Venezuela, and Viet Nam.

[2]The SyrianArabRepublicdoes not have an approved HPMP.