The Montreal Protocol on Substances that Deplete the Ozone Layer

The Montreal Protocol on Substances that Deplete the Ozone Layer is a global agreement to protect the Earth’s ozone layer by phasing out the chemicals that deplete it. This phase-out plan includes both the production and consumption of ozone-depleting substances. The landmark agreement was signed in 1987 and entered into force in 1989.

The parties to the Protocol meet once a year to make decisions aimed at ensuring the successful implementation of the agreement. These include adjusting or amending the Protocol, which has been done six times since its creation. The most recent amendment, the Kigali Amendment, called for the phase-down of hydrofluorocarbons (HFCs) in 2016. These HFCs were used as replacements for a batch of ozone-depleting substances eliminated by the original Montreal Protocol. Although they do not deplete the ozone layer, they are known to be powerful greenhouse gases and, thus, contributors to climate change.

The Montreal Protocol provided a set of practical, actionable tasks that were universally agreed on. The Protocol has successfully met its objectives thus far and continues to safeguard the ozone layer today. Thanks to the collaborative effort of nations around the world, the ozone layer is well on its way to recovery.

Decision XVII/42: Financial matters: Financial reports and budgets

The Seventeenth Meeting of the Parties decided in Dec. XVII/42:

Recalling decision XVI/44 on financial matters,

Noting the financial report on the Trust Fund for the Montreal Protocol on Substances that Deplete the Ozone Layer for the biennium 2004-2005 ended 31 December 2004;11

Recognizing that voluntary contributions are an essential complement for the effective implementation of the Montreal Protocol;

Welcoming the continued efficient management demonstrated by the Secretariat of the finances of the Montreal Protocol Trust Fund;

  1. To approve the 2006 budget for the Trust Fund in the amount of $4,678,532 and to take note of the proposed budget of $4,690,667 for 2007, as set out in annex IV to the report of the seventh meeting of the Conference of the Parties to the Vienna Convention for the Protection of the Ozone Layer and the Seventeenth Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer;
  2. To authorize the Secretariat to draw down $586,668 in 2006;
  3. To approve, as a consequence of the draw-downs referred to in paragraph 2 above, total contributions to be paid by the Parties of $4,091,864 for 2006 and note the contributions of $4,690,667 for 2007, as set out in annex V to the report of the seventh meeting of the Conference of the Parties to the Vienna Convention for the Protection of the Ozone Layer and the Seventeenth Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer;
  4. Also to approve that the contributions of individual Parties shall be listed in annex V to the report of the seventh meeting of the Conference of the Parties to the Vienna Convention for the Protection of the Ozone Layer and the Seventeenth Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer;
  5. To authorize the Secretariat to maintain a constant operating cash reserve of the estimated annual planned expenditures that will be used to meet the final expenditures under the Trust Fund. In 2005, Parties contributed 7.5 per cent of the approved budget for 2005; in 2006, the operating cash reserve will increase to 8.3 per cent, and in 2007 it will increase to 15 per cent;
  6. To express its concern over delays in payment of the agreed contributions by Parties, contrary to the provisions in paragraphs 3 and 4 of the terms of reference for the administration of the Trust Fund for the Montreal Protocol on Substances that Deplete the Ozone Layer;
  7. To urge all Parties to pay their contributions promptly and in full and further to urge Parties that have not done so to pay their contributions for prior years as soon as possible;
  8. To encourage Parties, non-Parties, and other stakeholders to contribute financially and with other means to assist members of the three assessment panels and their subsidiary bodies with their continued participation in the assessment activities under the Protocol;
  9. Also to encourage Parties, non-Parties and other stakeholders to contribute financially and with other means to assist in the provision of financial assistance to the Methyl Bromide Technical Options Committee;
  10. To invite Parties to notify the Secretariat of the Montreal Protocol of all contributions made to the Montreal Protocol Trust Fund at the time such payments are made;
  11. In accordance with rule 14 of the rules of procedure, to request the Executive Secretary to provide Parties with an indication of the financial implications of draft decisions which cannot be met from existing resources within the budget of the Montreal Protocol Trust Fund;
  12. To request that the Secretariat of the Montreal Protocol ensure the implementation of the decisions adopted by the Meeting of the Parties as approved, within the budgets and the availability of financial resources in the Trust Fund;
  13. To allow the Secretariat to make transfers up to 20 per cent from one main appropriation line of the approved budget to other main appropriation lines;
  14. To request the Secretariat to inform the Open-ended Working Group on all sources of income received, including the reserve and fund balance and interest, as well as actual and projected expenditures and commitments, and to request the Executive Secretary to provide an indicative report on all expenditures against budget lines;
  15. Also to request the Open-ended Working Group to keep under review the financial information provided by the Secretariat, including the timeliness and transparency of that information.

 

Annex IV: Trust Fund for the Montreal Protocol on Substances that Deplete the Ozone Layer: revised approved 2005 and approved 2006 and 2007 budgets
Annex V: Trust Fund for the Montreal Protocol: scale of contributions for 2006 and 2007