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End of Year Reflections on the End of Year Reflections on the

Montreal Protocol at 25 Years Montreal Protocol at 25 Years 19 December 201219 December 2012

Dr. Archalus Tcheknavorian-AsenbauerFormer Managing Director for Industrial Sectors and Environment including Climate Change and

Montreal Protocol, UNIDO

• 1990, London - The Montreal Protocol was amended to accommodate the needs of DCs for technical assistance for phasing out ODSs.

• A financial mechanism was established in the spirit of “COMMON BUT DIFFERENTIATED RESPONSIBILITIES” for addressing single environmental issues.

• The Chief Officer, Mr. Omar El Arini was appointed to manage the MLF and to establish all required prerequisites for its smooth operation in accordance with the convention’s vision and target.

• UN organizations such as UNEP and UNDP as well as the World Bank, were designated as Implementing Agencies of the MLF.

• The composition, procedures and guidelines of the Executive Committee of the MLF were also novel and greatly assisted the implementation of the Protocol.

The Multilateral Fund

• As the Managing Director of the department of Industrial Sectors and the Environment including Climate Change of UNIDO (with 150 staff of which more than half were highly industrial experts from different industrial sectors, such as chemical, metallurgy, engineering and agro-industries, as well as environmental experts), I visited Montreal in February 1992 on bilateral issues.

• By pure coincidence I came across to know during a meeting with Canadian authorities, that the Montreal Protocol Board Session was underway. I expressed my desire to attend and the Chief Officer of the MLF generously approved my attendance as observer, and provided me with the possibility of a short presentation on UNIDO industrial experience in developing countries.

• With that short appearance and presentation the Chief Officer found out that UNIDO could be an additional technical support for the successful implementation of the MP, and he facilitated the development by inviting UNIDO to the next Executive Board Meeting, in July 1992 and finally UNIDO became in October 1992 the fourth Implementing Agency of the Multilateral Fund.

UNIDO and My First Experience with the MLF

• In the very beginning UNIDO was foreseen to dedicate itself to small scale industries since both UNDP and the WB were already targeting large manufacturing enterprises.

• In that respect US $ 50,000 were allocated to UNIDO to start preparing projects for SMEs.

• But very soon it was recognized that the technical potential of UNIDO could make the difference, as the focus of the program was mostly performing changes in technology and operations of different industrial sectors in developing countries.

My Second Experience with the MLF

The Business Share of the Implementing Agencies

• UNIDO developed a large pipeline based on requests from many developing countries that could not be ignored. Therefore the ExCom requested Agencies to agree on business shares.

• A meeting took place at breakfast in a hotel where the WB team was staying. I exposed our programme and also our pipeline.

• Even though nobody was expecting any of the other Agencies to give up part of their business I was able to convince our sister Agencies, WB and UNDP, to make a significant gesture and the negotiations ended up by an agreement , that WB and UNDP reduced in favor of UNIDO their shares, which resulted to a new business shares between the implementing Agencies , giving UNIDO an unprecedented share of 25%.

• UNIDO in response, soon contributed with the introduction of innovative technologies, as well as with a plan to reduce the operation costs, especially in the refrigeration sector by shortening the period of transfer technology and trial from 4 years to 6 months, which created economic advantages for the MLF to support and finance more and other projects, and expedite the phase out process.

• I would like to pay tribute to day to all my colleagues in that period as well as my deepest thanks to them. It proved that we all together could contribute in harmony and respect, to advance the ODS phase-out in industries in DCs.I would like also to thank UNEP for their role , in facilitating the implementation of the projects, through creation Networks at national and regional level.

UNIDO Evolution

• For the last twenty years UNIDO has greatly developed its portfolio covering all sectors as well more than 80 DCs. In addition to its innovative approaches, technology promotion, expertise etc. UNIDO is today recognized as a major Implementing Agency successfully contributing to protecting the Ozone Layer as well as bringing significant climate benefit.

Approvals in 1993• Foam Sector, UNIDO’s approval amounted to $ 1,089,000.• Refrigeration Sector, UNIDO’s approval amounted to $ 4,828,900.

1994 - 1996

• 1994 – UNIDO had included in its activities the following substances: Aerosols, Halon, and Solvents.

• 1996 – UNIDO further increased its portfolio by adding in the following substances: Methyl Bromide Sector, Demonstration projects and later Phase-out Plans.

Facts & Figures

• Number of projects: over 1400• Number of countries assisted: 101 (including 29 least

developed countries)• Cumulative approvals in US $ more than 700 millions• Ozone impact: substances with more than 70,000

tonnes of ozone-depleting potential phased out• Climate impact: over 400.000.000 tonnes of carbon

dioxide equivalent avoided (CLIMATE BENEFIT)• Growing trend of UNIDO’s share of the portfolio of the

Multilateral Fund for the Implementation of the Montreal Protocol: more than 43 per cent by 2012

UNIDO’s Montreal Protocol Projects

Investment Projects

• Conversions of manufacturing facilities for a direct

phase-out of ozone depleting substances (ODS); • Ozone-depleting substances phase-out

Management Plans;• Elimination of methyl bromide in soil fumigation

and treatment of commodities;• Destruction of ozone-depleting substances;• Carbon financing.

Working the fridge line and with CFC free thermal insulation in China

Workshop for customs officer in Croatia

Non-investment Projects

• Trainings/workshops for customs officers;• Training for service technicians;• Institutional Strengthening/Capacity building;• Awareness raising activities;• Legislation/Policies.

• The MP convention, its adoption and the role of the MLF facilitating the implementation of the convention, with full integrity, and to make the best use of funds provided by industrialized countries, in a very transparent and accountable manner, the negotiations to clear the projects for implementation are unique and very professional.

• Accordingly, the MP and ODS phase-out under the convention has provided a unique experience, how developing and developed countries could advance the issues, to solve the negative impact created by humanity, to work together to eliminate, or at least reduce its vulnerability.

Lessons Learned

The Key to Success• I believe the key success is a balanced membership of the

Executive Committee, fully aware of new developments and open for new ideas, or needs to be considered to improve the development of the convention and its impact to the environment and finally humanity as a whole.

• Another key success was surely the personality of the Chief Officer who shaped the Secretariat of the Multilateral Fund to attend the needs of the ExCom as well as providing a unique tool for policy development, technical oversight, evaluation purposes as well as the managers of the MP programmes and their teams in Implementing Agencies.

• The choice of the Implementing Agencies was very well balanced, complimentary to each other with the aim to contribute to the achievement of the aim of the Protocol.

• After 22 years of MLF operations 90 % of ODS have been phased-out at cost of 2,2 billion US Dollars, and the latest scientific findings suggesting a recovery of the ozone hole in the 2070 is a testimony of the tremendous achievements to the benefit of humanity.

• I feel so honored and happy to have been one of the many professionals, politicians, generalists modestly contributing to such achievement.

Montreal Protocol – An Example to Follow

• However, the sad part of it, is having served for the last 5 years as senior adviser on climate change for UNDP / Barbados, and having participated in the last five COPs starting from COP 14 in Bali. I came to the conclusion, unfortunately, that the same participating governments, for reducing the negative impact of greenhouse gases instead of taking lessons from the Montreal Protocol are having endless and rather unfruitful negotiations.

• To my view time has come to introduce an innovative process, like MP convention , to advance the issue of climate change, which has and is going to impact to all parties, their social economy and environment specially regrettably the SIDS .

• Furthermore, I have been seeing, that in the COPs the role of the MP for the reduction of greenhouse gas emissions is not very much highlighted, nor fully recognized, which is sad, because through the implementation of the projects for phasing out ODS it also contributed significantly to mitigating climate change.

Thank you for your attention!