Post‑meeting summary of part II of the 89th meeting and the 90th meeting of the Executive Committee
The second part of the 89th meeting took place from 16 to 18 June 2022 and was attended by the representatives of the 14 Executive Committee member countries and participants co‑opted from 24 other countries. The 90th meeting immediately followed and took place from 20 to 23 June 2022. Both meetings were held at the headquarters of the International Civil Aviation Organization (ICAO), Montreal, Canada, in person and online, for any participants unable to attend in person due to coronavirus disease (COVID-19) pandemic restrictions. Mr. Hassan Ali Mubarak of Bahrain presided as Chair of the Executive Committee during the meetings. Representatives of implementing and bilateral agencies, UNEP as the Treasurer and the Executive Secretary of the Ozone Secretariat participated as observers. The President of the Implementation Committee and members of the task force on the replenishment of the Multilateral Fund of the Technology and Economic Assessment Panel (TEAP), representatives of the Environmental Investigation Agency, the Institute for Governance and Sustainable Development, Natural Resources Defense Council and the Refrigerant Gas Manufacturers’ Association of India also attended as observers.
Following a previous decision by the Executive Committee, the 89th meeting was devoted to policy-related items deferred from previous Committee meetings, and six decisions were taken at the second part of the meeting. At the 90th meeting, the Committee took a total of 54 decisions, and approved project and work programme activities for 50 countries with a value of US $18,554,871, including agency support costs for IAs.
The Executive Committee noted with appreciation the report on Secretariat activities, which included that the Secretariat, with input from bilateral and implementing agencies (IAs), had provided a comprehensive response to the recommendations of the audit of the Multilateral Fund by the UN Office of Internal Oversight Services (OIOS). As a result, five of the six recommendations had been closed as they were considered by OIOS as having been implemented.
Status of contributions and disbursements (decision 90/1)
As at 20 June 2022, the balance of the Multilateral Fund stood at US $431,449,726 in cash; pending a decision by the Parties on the use of the fixed exchange-rate mechanism (FERM) for the period 2021–2023, the loss resulting from the FERM remained unchanged at US $30.1 million. The Executive Committee urged all Parties to pay their contributions to the Multilateral Fund in full and as early as possible and requested the Chief Officer and the Treasurer to continue to follow up with countries that had outstanding contributions.
Report on balances and availability of resources (decision 90/2)
Implementing agencies returned balances of US $3,360,846 against completed projects to the Multilateral Fund leading to the total resources available for new commitments amounted to US $434,810,571. The Executive Committee requested bilateral and IAs to disburse or cancel commitments not needed for completed projects and projects completed “by decision of the Executive Committee” and to return the balances at the 91st meeting. UNDP, UNEP and UNIDO were requested to disburse or cancel commitments for projects completed over two years previously and to return the balances at the 91st meeting.
Country programme data and prospects for compliance (decision 90/3)
112 countries submitted their country programme data (CP) reports for the year 2021, including 20 received after the issuance of the document. The Executive Committee approved the updated revised format for Section B of the CP data reports, on the understanding that the data required in the column relating to the manufacture of HFC blends would be reported on a voluntary basis. The Secretariat was requested to update the practical manual for CP data reporting to include information on ways to report HFC data in CP reports in order to facilitate reconciliation of that data with HFC data reported under Article 7 of the Montreal Protocol.
Evaluation (decisions 90/4 to 90/5)
The Executive Committee invited Article 5 Parties, bilateral and IAs and the Secretariat to take into account, where appropriate, the findings of the desk study for the evaluation of demonstration projects for low-global-warming-potential alternatives to HCFCs,  in project design, implementation and reporting related to future technology demonstration activities associated with HFC phase-down (decision 90/4). The Committee noted the update on the status of the second phase of the evaluation of regional networks of national ozone officers. The Committee approved the terms of reference for the desk study for the evaluation of enabling activities for HFC phase-down (decision 90/5).
Status reports and reports on projects with specific reporting requirements (decisions 90/6 to 90/28)
The Executive Committee noted that bilateral and IAs would report to the 91st meeting on 40 projects with implementation delays and 23 projects recommended for additional status reports and approved the recommendations on ongoing projects with specific issues. It requested the Secretariat to send letters to the Governments of the Congo and Saint Kitts and Nevis, as well as UNEP as the lead implementing agency, regarding possible cancellation of the HPMP (stage I, third tranche) and the HPMP (stage I, second tranche) in the respective countries.
For reports on projects with specific reporting requirements, it took decisions on those related to HPMPs for 15 countries, a demonstration project for low-GWP alternatives to HCFCs for Saudi Arabia, a project to control emissions of HFC-23 generated in the production of HCFC-22 for Argentina, and a project for the conversion from HFC to propane of the facility manufacturing large commercial unitary roof-top air-conditioning units in Jordan. It also approved the extension of the completion dates for HPMPs for 16 countries, and the extension of the completion dates of enabling activities for HFC phase-down for 16 countries, on the understanding that no further extension would be requested.
The Committee agreed to defer, until the following in-person meeting, three reports on projects with specific reporting requirements pertaining to China.  The Committee noted the report on the disbursement of incremental operating costs (IOCs) under the industrial and commercial refrigeration and air-conditioning (ICR) sector plan under stage I of the HPMP for China, and approved an extension of financial completion of the plan to 31 December 2022 to allow for the disbursement of IOCs, on the understanding that no further extension would be requested.
2022 Consolidated project completion report (decision 90/28)
The Executive Committee urged bilateral and IAs to submit to the 91st meeting the project completion reports (PCRs) for multi-year agreements (MYAs) and individual projects that were due, and if they were not going to submit them, to provide the reasons. Lead and cooperating agencies were urged to closely coordinate their work in finalizing their portion of PCRs to allow the lead IA to submit the completed PCRs according to schedule. The Committee encouraged bilateral and IAs to ensure the inclusion of relevant and useful information about the lessons learned and the reasons for any delays, beyond anecdotal evidence, with a view to enabling the formulation of actionable recommendations for improvements in future project implementation or the replicability of good practices, and invited all those involved in the preparation and implementation of MYAs and individual projects to take into consideration the relevant lessons learned from PCRs when preparing and implementing future projects. The Committee also requested UNIDO to complete its update of the PCR for the refrigeration servicing sector in China in line with decision 88/30, and decided to provide guidance to and request the SMEO, in line with decision 89/1(b), to explore ways and means to collect better data, improve database accessibility and improve access to online information from MYA PCRs and individual PCRs, in the context of the information strategy to be reviewed by the Secretariat, and to include such issues in the draft monitoring and evaluation work programme for 2023.
Update on the status of implementation of the 2022–2024 consolidated business plan of the Multilateral Fund (decision 90/29)
The Executive Committee noted that the total value of activities submitted to the 90th meeting amounted to US $18,550,280 (including US $2,872,500 for HFC-related activities and US $1,043,745 for project proposals not included in the 2022 business plans). It also noted the report by UNIDO on discussions held with the Government of Iraq on the issues raised in the assessment of its qualitative performance, in line with decision 88/8(b).
Tranche submission delays (decision 90/30)
17 out of 44 activities related to tranches of HPMPs that were due for submission to the 90th meeting were submitted on time. Relevant bilateral and IAs indicated that the late submission of the tranches of HPMPs due for submission at the first meeting of 2022 would have no impact, or was unlikely to have an impact, on compliance with the Montreal Protocol, and that there was no indication that any of the countries concerned were in non‑compliance with the Montreal Protocol control measures. The Secretariat will send letters to the relevant Governments regarding the decisions on tranche submission delays.
Continued use of the principles to be applied in respect of eligible incremental costs for HCFC phase-out projects in stage II of HCFC phase-out management plans (decision 74/50) (decision 90/31)
The Executive Committee reaffirmed that the principles of eligible incremental costs of HCFC phase-out projects for stage II of HPMPs established in decision 74/50 would continue to be applied in the future stages.
Verification reports of low-volume-consuming (LVC) countries’ compliance with their HPMP agreements (decision 83/48)
The Executive Committee requested relevant bilateral and IAs to include in the amendments to their respective work programmes, due for submission at the 91st meeting, funding in the amount of US $30,000, plus agency support costs, for verification reports for stage II of the HPMPs for 17 countries.
Approved projects (decisions 90/32, and 90/35 to 90/47)
Funding of US $19,061,470, including agency support costs, was approved for: renewals of institutional strengthening projects (US $3,426,559) for 25 countries; project preparation for stage III of the HPMP for Argentina (US $96,300); verification of compliance of Kyrgyzstan with their HPMP Agreement (US $32,700); and preparation for the Kigali HFC implementation plans (KIPs) and/or investment-related activities for 16 countries (US $2,563,100). Funding for new stages II/III of HPMPs was approved for nine countries (first tranche amounting to US $5,661,467). Additionally, funding was approved for the tranches of stage I of the HPMP (US $525,752) for five countries; and for tranches of stage II of the HPMP (US $6,404,411) for five countries.
The Executive Committee requested the Treasurer to offset the costs of the bilateral projects approved at the 90th meeting in the amount of US $721,388 (including agency support costs) against the balance of the bilateral contribution of the Government of Germany for 2021–2022.
Current monitoring, reporting, verification and enforceable licensing and quota systems developed with support from the Multilateral Fund (decision 89/2)
At part II of the 89th meeting, a contact group was constituted, and the Committee subsequently decided to defer further consideration of the overview of current monitoring, reporting, verification and enforceable licensing and quota systems developed with support from the Multilateral Fund to the 91st meeting, taking into consideration any outcomes of the 44th Meeting of the Open-ended Working Group and the Thirty-Fourth Meeting of the Parties.
Review of institutional strengthening projects, including funding levels (decision 74/51(d)) (decision 89/3)
The contact group constituted at part I of the 89th meeting, reconstituted at part II of the meeting to further discuss the working text appended to the report of part I of the 89th meeting. The Committee subsequently decided to defer consideration of this matter to the 91st meeting, on the basis of the working text contained in Annex I of the report of part II of the 89th meeting. The Committee also requested that the Secretariat discuss with the bilateral and IAs matters related to reviewing the existing format of terminal reports and requests for extension of IS funding, to select a set of performance indicators that could be used consistently by all Article 5 countries, and to report back to the 91st meeting.
Update of the analysis of the implications of parallel or integrated implementation of HCFC phase-out and HFC phase-down activities (decision 84/86(b)(i)) (decision 89/4)
At part II of the 89th meeting, the Executive Committee requested the Secretariat to prepare an analysis related to the capacity of the Multilateral Fund institutions to address HFC phase-down, for its consideration at the 91st meeting.
Report on the review of the implementation of the operational policy on gender mainstreaming for Multilateral Fund-supported projects (decision 84/92(e)) (decision 90/48)
The Executive Committee noted the report and the gender mainstreaming checklist for projects and the list of gender indicators to facilitate reporting, found in annexes II and IV, respectively, to document UNEP/OzL.Pro/ExCom/84/73, which provided guidance to the bilateral and IAs that they might take into account on a voluntary basis when implementing the operational gender mainstreaming policy of the Multilateral Fund. The Committee also encouraged bilateral and IAs to continue ensuring that the policy was applied to all Montreal Protocol projects and requested them to provide a brief report on key gender mainstreaming results achieved as part of their annual progress reports, as of 2023, on the basis of the information available. The Committee requested the Secretariat to develop by the 92nd meeting, improved project requirements, including specific outputs and outcomes, and related key performance indicators for the systematic application of the gender mainstreaming policy; incorporate within the proposed Multilateral Fund scorecard, when developed, an overarching results statement on gender mainstreaming on the basis of the reports by the bilateral and IAs requested; and to further review and provide an update on the implementation of the policy for the consideration of the Committee at its last meeting in 2024.
Matters related to the Kigali Amendment to the Montreal Protocol
Development of the cost guidelines for the phase-down of HFCs in Article 5 countries: Draft criteria for funding (decision 83/65(d)) (decision 90/49)
The matter was discussed at part II of the 89th meeting and continued at the 90th meeting. A contact group was formed. Discussions focused on the issue of the starting point for sustained aggregate reductions in HFC consumption and production, the cost-effectiveness thresholds, and the duration and level of IOCs. The contact group agreed that in the interim, for the aerosol, fire extinguishing, metered-dose inhaler, solvent and mobile air-conditioning sectors, cost-effectiveness would be considered on a case-by-case basis, and for the domestic refrigeration manufacturing sector, the cost-effectiveness threshold of US $13.76/kg would be used. The Secretariat prepared various scenarios in relation to the possible units of measurement and methodologies that might be used in determining the starting point.
The reconstituted contact group at the 90th meeting continued its discussion on the basis of working texts on cost-effectiveness thresholds, disposal and the starting point for sustained reductions of HFCs, contained in Annexes II, III and IV, respectively, to the report of part II of the 89th meeting, but could not conclude its work on the starting point, or the duration and level of IOCs. The Committee agreed to pursue consideration of the non-resolved issues relating to the development of the cost guidelines for the phase-down of HFCs in Article 5 countries on the basis of inter alia the working documents on the cost-effectiveness thresholds and the starting point for sustained aggregate reductions in HFC consumption and production, contained in Annexes XXIII and XXIV, respectively, to the meeting report, at its 91st meeting.
The contact group reached agreement on the issue of disposal. The Committee decided to provide flexibility for Article 5 countries to include activities related to the environmentally sound management of used or unwanted controlled substances, including disposal, taking into account paragraphs 19 to 24 of document UNEP/OzL.Pro/ExCom/89/9 and lessons learned from previous ODS disposal projects, including in relation to the integration with hazardous waste rules and regulations, in the following plans:
· Refrigeration servicing sector plans under HPMPs, on the understanding that proposals for undertaking such activities would be submitted to the Executive Committee, either as part of new stages of HPMPs or subsequent tranches of approved stages of HPMPs;
· Stage I of KIPs.
The Committee also requested the Secretariat to develop, for its at the 91st meeting, criteria for a funding window to provide Article 5 countries with assistance to prepare an inventory of banks of used or unwanted controlled substances and to develop a plan for the collection, transport and disposal (including consideration of recycling, reclamation and cost-effective destruction) of such substances; and decided to continue its deliberations on operationalizing paragraph 24 of decision XXVIII/2 of the Meeting of the Parties, in the context of the discussion of the cost guidelines for the phase-down of HFCs in Article 5 countries.
Potential strategies, policy measures and commitments, as well as projects and activities that could be integrated within stage I of HFC phase-down plans for Article 5 countries to ensure limits on growth and sustainable reductions in HFC consumption (decision 88/75) (decision 89/5)
At part II of the 89th meeting, the Executive Committee encouraged bilateral and IAs and Article 5 countries, in accordance with their national circumstances, to take into account, where appropriate and feasible, the ideas and suggestions contained in document UNEP/OzL.Pro/ExCom/88/71, while designing HFC phase-down strategies, including developing KIPs, taking into account the compliance obligations as per the agreed HFC phase-down schedule for Article 5 Parties.
Analysis of the level and modalities of funding for HFC phase-down in the refrigeration servicing sector (decision 88/76)
The matter was discussed at part II of the 89th meeting and continued at the 90th meeting, based on additional information provided by the Secretariat, such as that non-LVC countries were categorized into four groups on the basis of their HCFC consumption and level of manufacturing; different levels of funding were proposed for each group, special cases were identified, and specific modalities of funding were proposed for each one; and that the overall level of funding for the servicing sector for all Article 5 countries was calculated according to the level of funding proposed for each group of countries. Diverse views were expressed on the additional information.
Discussion in a contact group included proposals on funding for LVC countries and exchange of views on methodologies, the realities that Article 5 countries were facing and the principles of financing that the Fund had applied in the past. The Executive Committee reconstituted the contact group at its 90th meeting, considering several proposals and counterproposals on financing for non-LVC and LVC countries, but a conclusion could not be reached there. The Committee thus agreed to pursue consideration of this matter at its 91st meeting.
Synthesis report describing best practices and ways for the Executive Committee to consider operationalizing paragraph 24 of decision XXVIII/2 (decision 84/87(b))
At part II of the 89th meeting, interest was expressed in continuing the discussion in a contact group. The Executive Committee subsequently agreed to include the issue in the deliberations of the contact group on the HFC cost guidelines.
Analysis of and information on the incremental costs and their duration, and the cost-effectiveness of all approved investment projects in the relevant manufacturing sectors and sub-sectors (decision 84/87(a))
At part II of the 89th meeting, the Executive Committee took note of documents UNEP/OzL.Pro/ExCom/89/10/Rev.1 and UNEP/OzL.Pro/ExCom/89/10/Add.1 and further agreed to take into account the information contained in these documents during the discussion of the development of the cost guidelines for the phase-down of HFCs in Article 5 countries in the contact group constituted under that agenda item.
Paper on ways to operationalize paragraph 16 of decision XXVIII/2 and paragraph 2 of decision XXX/5 of the Parties (decision 84/88) (decision 89/6)
At part II of the 89th meeting, the Executive Committee considered the following additional activities for inclusion in existing and future HPMPs for LVC countries, when needed for the introduction of alternatives to HCFCs with low or zero global-warming potential (GWP) and for maintaining energy efficiency in the refrigeration servicing sector:
· Pilot projects designed for and targeted towards end users, relating primarily to energy efficient small-capacity refrigeration, air-conditioning and heat-pump (RACHP) equipment using alternative low-GWP technologies to address challenges related to market acceptance;
· Updating of training material to strengthen components related to good practices and energy efficiency during assessment, installation, maintenance and servicing of RACHP equipment, including safety considerations when addressing refrigerants with differing operating characteristics with regard to flammability, toxicity and pressure;
· Coordination and collaboration between the national ozone units and relevant authorities and bodies to include appropriate consideration of low-GWP refrigerants during the development of cooling and energy efficiency plans, which among others
include minimum energy performance standards (MEPS) and, as appropriate, labelling and testing programmes, and standards for RACHP equipment;
· Development and implementation of competency-based certification schemes for technicians and the strengthening of national institutions for such systems including for energy efficiency and safety; and
· Awareness and outreach programmes to promote the introduction of MEPS and labelling systems; the mandatory certification of technicians; and the introduction of energy-efficient RACHP equipment operating with low- or zero-GWP refrigerants.
The Committee also decided to provide 100,000 US $ and 120,000 US $ as additional funding for countries whose baseline consumption in the refrigeration sector is less than 120 mt and between 120 and 360 mt respectively, when needed, for the above activities, on the understanding that Article 5 countries would have flexibility in using the additional funding to address specific needs that might arise during project implementation relating to introduction of alternatives to HCFCs with low- or zero-GWP refrigerants and for maintaining energy efficiency in the refrigeration servicing sector.
Report identifying options, including the relevant procedures and conditions for mobilizing financial resources for maintaining and/or enhancing energy efficiency when replacing HFCs with low-global-warming-potential alternatives (decision 87/51) (decision 90/50)
The matter was discussed at part II of the 89th meeting and continued at the 90th meeting. Views on the three funding options identified by the Secretariat, namely: regular contributions to the Multilateral Fund funding; funding through additional contributions by donor countries outside the Multilateral Fund replenishments; and negotiated funding arrangements with identified institutions, were exchanged and interest in the proposed funding window for pilot projects was expressed.
The Executive Committee requested the Secretariat to develop, for its consideration at the 91st meeting, criteria for pilot projects to maintain and/or enhance energy efficiency of replacement technologies and equipment in the context of the HFC phase-down, and to prepare, also for its consideration at the same meeting, an operational framework to further elaborate on institutional aspects and projects and activities that could be undertaken by the Multilateral Fund for maintaining and/or enhancing the energy efficiency of replacement technologies and equipment in the manufacturing and servicing sector when phasing down HFCs in the categories set out in the document, in the context of implementing options 1 and 2 in table 3 of the document, taking into consideration the comments made by the Executive Committee during its 89th and 90th meetings. The Secretariat was also requested to continue its consultations with the secretariats of the Global Environment Facility and the Green Climate Fund and other relevant funding institutions on opportunities for sharing information on policies, projects and relevant funding modalities relating to maintaining and/or enhancing energy efficiency while phasing down HFCs, and to report back to the Committee at its 91st meeting.
Key aspects related to HFC-23 by-product control technologies (decision 83/67(d)) (decision 89/7)
At part II of the 89th meeting, the Executive Committee confirmed that:
· HFC-23 by-product was destroyed to the extent practicable in the context of Multilateral Fund-supported projects when up to a maximum of 0.1 kg of HFC-23 by-product was emitted per 100 kg of the relevant Annex C, Group I or Annex F substance produced;
· HFC-23 by-product controls would be eligible independent of whether the relevant production that generated the HFC-23 was for controlled or for feedstock uses;
· The term “production” in the context of HFC-23 by-product emission control projects supported by the Multilateral Fund meant the total amount of relevant Annex C, Group I or Annex F substance produced for all uses, including controlled and feedstock uses, irrespective of any subsequent destruction, recycling, and reuse.
The Committee also decided when approving projects to control HFC-23 by-product emissions from production lines that would continue to produce the relevant Annex C, Group I or Annex F substance after the completion of the project, to invite the relevant Article 5 country to consider requesting additional funding for independent verification of the HFC-23 by-product generated, destroyed, sold, stored and emitted, under the subsequent stage of its HCFC phase-out management plan, until approval of its KIP, at which time verification would continue under that plan.
Draft report of the Executive Committee to the Thirty-Fourth Meeting of the Parties
The Committee authorized the Secretariat to finalize this report in the light of the discussions held and decisions taken at the 89th and 90th meetings and, following clearance by the Chair, to submit it to the Ozone Secretariat.
Report of the Sub-group on the Production Sector (decisions 90/51 to 90/53)
The Sub‑group on the Production Sector (Brazil, Canada (facilitator), Cuba, Finland, India, Italy, the United States of America and Zimbabwe) met twice in the margins of the 90th meeting.
At the recommendation of the Sub-group, the Executive Committee noted the review of the approach used by the Government of China to report production of HCFC-133a and CFC-113a under Article 7 of the Montreal Protocol (decision 87/51(e)(ii)) and further noted that the Government of China had informed the Committee that, as of 2020, the country would report under Article 7 of the Montreal Protocol production of HCFC-133a and CFC-113a consistent with the verification reports submitted under the country’s HCFC production phase-out management plan and with the Government’s more rigorous approach to the reporting of data on those substances. The Committee also decided to defer consideration of the other two items to a future meeting, namely the draft guidelines and the standard format used for the verification of ODS production phase out, and the draft HCFC production sector guidelines.
Dates and venues of the 91st, 92nd and 93rd meetings of the Executive Committee (decision 90/54)
The Committee decided to hold its 91st meeting from 5 to 9 December 2022 in Montreal, its 92nd meeting from 12 to 16 June 2022 in Montreal, and its 93rd meeting back-to-back with the Thirty-Fifth Meeting of the Parties, at a venue to be decided.
Report of the 89th (part II) and 90th meetings
A complete record of all decisions made at the 89th (part II) and 90th meetings can be found on the meetings page.
Algeria, Bahamas, Bahrain, Barbados, Cabo Verde, Chad, Cuba, Ethiopia, Guinea, Haiti, Honduras, Indonesia, Jamaica, Lesotho, Malawi, Maldives, Marshall Islands (the), Niger (the), Panama, Qatar, Saint Kitts and Nevis, Saudi Arabia, Syrian Arab Republic, Turkmenistan and Uganda.