October 3, 2007—The World Bank and its staff have received 24 awards in recognition of their “extraordinary assistance [and] contributions” to developing countries in the global effort to protect the ozone layer.
The awards were given at an international conference in Montreal marking the 20th anniversary of the Montreal Protocol, the international agreement responsible for phasing out 95 percent of the world’s production and consumption of Ozone Depleting Substances.
Speaking at commemoration ceremonies, Kathy Sierra, the Bank’s Vice President for Sustainable Development, told delegates to the conference that “the World Bank has been closely engaged in the ozone agenda the last 15 years in its role as a Multilateral Fund implementing agency. It is proud to have been in the forefront of innovative project modalities and approaches which addressed emerging country needs while respecting the Fund’s demand for accountability, cost-effectiveness, and sustainability.”
The World Bank became a key partner in Montreal Protocol implementation after agreeing to serve as one of four implementing agencies under the Multilateral Fund in 1991. The Bank has assisted developing countries in their phase-out efforts by supporting both fledgling country programs which first identify the scope of ozone depleting substance use and mature, policy-oriented, national-level strategies focused on the final phase-out of ozone-depleting consumption.
Ozone depletion leads to increasing ultraviolet (UV) radiation at the Earth’s surface, which ultimately leads to higher incidence of skin cancer in humans. Without the Montreal Protocol, levels of ozone-depleting substances in the atmosphere were projected to increase tenfold by 2050. This could have resulted in up to 20 million more cases of skin cancer and 130 million more cases of eye cataracts relative to 1980.
A new focus for action
At the 20th anniversary conference, environment ministers and senior officials from 191 countries reconvened to try for a repeat performance. They agreed on the following to accelerate the phase-out of the last major category of ozone-destroying chemicals in widespread use – hydro chlorofluorocarbons, or HCFCs:
• Set a baseline that is the average of 2009 consumption and 2010 production. • Freeze consumption and production at the baseline levels in 2013. • Complete the phase-out of production and consumption in 2030, on the basis of these reduction steps: 10% by 2015, 35% by 2020, and 67.6% by 2025, and allowing for serving an annual average of 2.5% during the period 2030-2040.
Marco Gonzalez, Executive Secretary, Ozone Secretariat; John Baird, Minister of the Environment, Canada; Katherine Sierra, Vice President for Sustainable Development, World Bank; Achim Steiner, Executive Director, UNEP Click for an enlarged view
HCFCs not only damage the upper atmosphere's protective ozone layer, but also are a potent greenhouse gas. Human activities cause the emission of a set of chlorine- and bromine-containing chemicals that lead to the reduction of atmospheric ozone levels. HCFCS are used in millions of home appliances, such as air conditioners and refrigerators, and for making foam.
The UN estimates that an accelerated phase-out could lead to a reduction of 3.5 percent of the world's greenhouse gas emissions, or 22 billion tonnes of carbon dioxide-equivalent between 2010 and 2050.
“While we honor the success of the Montreal Protocol and the Multilateral Fund,” said Sierra, “we must not lose focus on the important and challenging work ahead. Efforts must be sustained while taking advantage of the momentum gained in many Article 5 countries. I give my wholehearted wishes of success and wherewithal to Article 5 countries for completing the remaining and most challenging work ahead of the 2010 phase-out target.”
Article 5 countries are the approximately 120 developing nations which have been allowed to delay implementation of controls on CFC production and consumption.
What has been achieved
By the end of 2006, the Bank’s Multilateral Fund (MLF) projects in 25 countries had resulted in reductions of over 259,000 ODP tons with a US$687 million cumulative disbursement. This represents 69 percent of all the phase-out achieved under the MLF by all implementing and bilateral agencies for only 44 percent of the total cost. The World Bank MLF portfolio had grown to US$891 million as of July 2007.
Countries with economies in transition (CEIT) do not qualify for assistance from the Multilateral Fund but have been eligible for assistance under the GEF. The World Bank, as an implementing agency under the GEF, provided assistance to nine CEIT countries with nearly US$93 million of GEF funding throughout the 1990’s and into 2000 which contributed to decreasing and eliminating the consumption and production of over 230,000 ODP tons (the baseline level).
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