Multilateral Fund for the Implementation of the Montreal Protocol
The Multilateral Fund was set up by the Parties to the Montreal Protocol to assist developing countries to comply with the terms of the Montreal Protocol, an international agreement that sets out a timetable for the phase-out of ODS in both developed and developing countries. The Multilateral Fund provides assistance to countries that are Parties to the Montreal Protocol and whose annual per capita consumption and production of CFCs and halons is less than 0.3 kg on the date of entry into force of the Montreal Protocol or any time thereafter until 1 January 1999. The developing countries that meet these criteria are referred to as Article 5 countries. Contributions to the Multilateral Fund are provided by the non-Article 5 countries.
The Kigali Amendment, which was adopted at the Twenty-eighth Meeting of the Parties to the Montreal Protocol (MOP) on 15 October 2016, added HFCs, non-ODS greenhouse gases that do not damage the ozone layer but have a high global-warming potential (GWP), to the list of substances controlled under the Protocol. The Kigali Amendment entered into force on 1 January 2019. As at 5 February 2020, it has been ratified by 93 Parties. The Montreal Protocol’s timetable for the phase-down of HFCs in both Article 5 and non-Article 5 countries is set out in Annex F of the Protocol.
A group of 17 non-Article 5 Parties has provided fast-start support for the implementation of the Kigali Amendment, that is additional to their regular contributions to the Fund. The additional contributions have been made available to Article 5 countries that had an HFC consumption baseline year between 2020 and 2022 and that had ratified or formally indicated their intent to ratify the Kigali Amendment and take on early HFC phase down obligations in order to support their enabling activities, such as capacity building and training in handling HFC alternatives, Article 4B licensing, reporting, and project preparation activities, taking into account, but not restricted to, relevant guidelines and decisions of the Executive Committee.
Funding size varies according to replenishment term. The MLF is replenished on a three-year basis by the donor countries. The most recent replenishment period accumulated USD 540 million (2018-2020). In the context of the Kigali amendment USD 25 million have been pledged by a group of donor countries to enable early action on HFCs.