The Multilateral Fund, a financial mechanism established in 1990 to support the implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer, has been replenished to support the phase-out of Hydrofluorocarbons (HFCs), harmful cooling gases mainly used in refrigerators and air conditioners. ALSO READ: Kigali Amendment faces crucial test as countries negotiate funding Parties to the 38th Meeting of the Parties (MOP38) to the Montreal Protocol on Saturday, November 7, reached an agreement at Kigali Convention Centre on a package of key decisions, including a $695 million replenishment of the Multilateral Fund for 2027-2029, according to the Montreal Protocol Ozone Secretariat. This funding mechanism under the Montreal Protocol plays a vital role in supporting Article 5 Parties to meet their obligations and advance the global phase-out and phase-down of controlled substances. ALSO READ: Climate philanthropies pledge $100m in support of Kigali Amendment Elizabeth Maruma Mrema, United Nations Assistant Secretary-General and Deputy Executive Director of the United Nations Environment Programme (UNEP), said that over the past decade, the Multilateral Fund had supported enabling activities around the world through millions of dollars in investment. “This has helped governments establish reporting systems, strengthen regulatory frameworks and lay the foundations for effective implementation of the Kigali Amendment [to the Montreal Protocol],” she said. ALSO READ: US ratifies Kigali Amendment to phase out climate super-pollutants The fund has also translated ambition into action through the approval of 91 Stage I Kigali HFC Implementation Plans. She said these investments contribute to the avoidance of more than 78 million tonnes of carbon dioxide-equivalent emissions. “And the work goes beyond phasing down hydrofluorocarbons,” Mrema said. “Through assistance to 127 developing countries, the fund is strengthening national capacities to collect, transport and manage used and unwanted controlled substances in an environmentally sound manner. This is an important contribution to more circular and sustainable approaches to refrigerant management.” As the only implementing agency of the Multilateral Fund mandated to deliver the Montreal Protocol's clearing-house functions, UNEP OzonAction provides a bridge between global commitments and national implementation. ALSO READ: REMA urges switch to climate-friendly fridges Rwanda is advancing its climate and ozone agendas together, with clear links to emissions reduction and resilience,” said Faustin Munyazikwiye, Deputy Director General of the Rwanda Environment Management Authority (REMA). Munyazikwiye spoke about how the country's climate commitments, environmental policies and implementation of the Kigali Amendment to the Montreal Protocol can support coordinated action. During negotiations in Kigali, parties also adopted decisions on issues ranging from HFC-23 emissions to improving the efficiency of the Protocol's processes. Also known as trifluoromethane (CHF₃), HFC-23 is a powerful greenhouse gas that contributes to global warming. It is mainly produced as a by-product during the manufacture of HCFC-22, another chemical used in refrigeration and air-conditioning systems. Key highlights and decisions from the negotiations The 38th Meeting of the Parties (MOP38) to the Montreal Protocol concluded with mixed feelings on Saturday morning. ALSO READ: Environmentalists buoyant as the Kigali Amendment enters into force While a breakthrough was achieved on replenishing the central funding mechanism under the Montreal Protocol, the closing plenary was dominated by discussions about the status of Central Asian States (CAS) in relation to the Eastern European States Regional Group (EEG). Parties agreed to provide $695 million in new contributions and $335 million in carry-over funding for the Multilateral Fund for the Implementation of the Montreal Protocol (MLF) for 2027-2029. Several agenda items were overshadowed by the controversy surrounding the Eastern European States Regional Group (EEG), one of the five geographical groups used by the United Nations to organise countries for diplomatic discussions, representation and elections to international bodies. Under the Montreal Protocol, the EEG is a regional grouping of countries that coordinates nominations and representation in the Protocol's governing and technical bodies. The disagreement affected nominations for the MOP38 Bureau, the Executive Committee of the Multilateral Fund and the Implementation Committee under the Protocol's Non-Compliance Procedure. The decisions adopted included the 2027-2029 replenishment of the fund; advancing resource-efficient operations of the Montreal Protocol; emissions of hydrofluorocarbon-23 (HFC-23); the organisation of the Technology and Economic Assessment Panel (TEAP) and its technical options committees; changes in TEAP membership; and the status of ratification of the Kigali Amendment. They also included eight decisions relating to compliance and data reporting proposed by the Implementation Committee, as well as financial reports and budgets for the Montreal Protocol. Parties approved a budget of $5.76 million for the Protocol's Trust Fund for 2027. The MOP also agreed that MOP39 would be held in Nairobi from 25 to 29 October 2027. What was not agreed Parties could not reach agreement on two implementation issues. On strengthening Montreal Protocol institutions, the contact group discussed how licensing systems and data reporting could be improved to prevent illegal trade. Parties disagreed on whether the Secretariat should produce further reports identifying common features of licensing systems. They also disagreed on whether a report on available tools and best practices to improve the tracking and monitoring of controlled substances should cover domestic online marketplaces and e-commerce platforms. On enhancing regional atmospheric monitoring of controlled substances, the contact group sought to ensure consistency between the three funding streams for establishing additional monitoring stations: the Montreal Protocol Trust Fund, a Multilateral Fund funding window and an EU grant. While the EU sought to align governance arrangements, some potential voluntary host countries for monitoring stations raised concerns about legal liability and the protection of sovereign data.
