2011 has been a transition year for the Bank's Montreal Protocol program, with clients working to sustain the phase-out of previously implemented ODS activities, while launching efforts to address the first two globally mandated consumption reduction targets for hydrochlorofluorocarbons (HCFCs): a freeze in consumption by 2013 and a 10% reduction by 2015. Building on our twenty years of experience in support of the Protocol, the Bank remains focused on assisting clients to develop projects that strategically address their HCFC phase-out obligations.
During 2011, the Executive Committee (ExCom) of the Multilateral Fund for the Implementation of the Montreal Protocol cleared US $1 million for Argentina to participate in the Bank's Global Chiller Replacement Project; approved new funding to support the preparation of national and sector HCFC strategies in Argentina, the Philippines, and Thailand; and approved funding for a series of larger scale HCFC investment projects, on the condition that performance targets are achieved, in a number of countries as highlighted below:
- Vietnam -- Funding of US $9.76 million for Vietnam to implement the HCFC Phase-out Management Plan (HPMP) it developed with the support of the Bank;
- Indonesia -- A US $2.7 million project to allow enterprises in Indonesia's foam sector to begin conversion away from the use of HCFCs;
- Jordan -- A US $2.3 million project targeting the country's air-conditioning manufacturing sector to assist Jordan in supporting achievement of the 2015 reduction target; and,
- China -- A US $73 million foam sector project to assist Chinese industry in reaching the 2015 10% reduction target.
The funding approved for China has been the largest HCFC-related approval to date and followed on a year of intense negotiations with donors, during a time when the adequacy of MLF funding was being hotly debated. The China approval sent a signal of future funding needs, given the steep rate of growth in HCFC consumption being witnessed in emerging economies with a rapidly growing consumer base.
At the 23rd Meeting of the Parties to the Montreal Protocol held in Bali in November, Parties negotiated a three year replenishment of the MLF (2012-2014) valued at US $450 million. From a policy perspective, amendments to the Protocol regarding the inclusion of HFCs within its purview, proposed by North America and Micronesia, continued to garner increasing support from a number of countries. However, action did not advance to discussion through a formal contact group, given the view held by some Parties that the proposed amendments overstepped the mandate of the Protocol.