Context

Until about a decade ago, the lack of knowledge about atmospheric chemistry and processes led to a significant depletion of stratospheric ozone levels. Man-made chemicals, especially chlorine and bromine compounds, such as chlorofluorocarbons (CFCs), halons, and a broad range of industrial chemicals attack the ozone layer and are recognized as ozone depleting substances (ODS). Moreover, by enhancing the process of climate change they disturb food chains and so have an effect on agriculture, fisheries and biological diversity. Without the Montreal Protocol the levels of ozone-depleting substances would have been five times higher than they are today, and surface ultraviolet-B radiation levels would have doubled at mid-latitudes in the northern hemisphere. On current estimates the CFC concentration in the ozone layer is expected to decline to pre-1980 levels by 2050.

While primarily concerned with the issue of eliminating ozone depleting substances (ODS), the activities carried out by UNIDO under this service module also enable the industries concerned to achieve increased productivity and an improved economic performance in terms of lower operating costs, less maintenance and higher product quality and reliability. These activities also make a major contribution to generating employment, both by sustaining existing jobs and creating new ones.

Two MDGs are thus of particular relevance to this service module, namely MDG 7, "to ensure environmental sustainability", and MDG 1, "to eradicate extreme poverty and hunger":

• With regard to the former, UNIDO's efforts in the ten years that the Organization has been an implementing agency of the Montreal Protocol Multilateral Fund (MLF) have resulted in the cumulative elimination of 22,000 ozone-depleting potential (ODP) tonnes of annual ODS consumption from various industrial sectors of the developing countries listed in Article 5 of the Protocol.
• With regard to the latter, UNIDO has assisted approximately 1,250 industrial firms employing some 145,000 workers through its technical cooperation activities carried out in the context of the Montreal Protocol. In addition, generating and sustaining employment also occurs in non-manufacturing sectors. In the framework of its refrigerant management plans, for example, UNIDO trains workers to service and maintain refrigeration and air-conditioning equipment, while in its projects dealing with the phasing out of methyl bromide in fumigation the Organization has so far trained more than 150,000 farmers in the use of non-chemical and chemical alternatives and given them an opportunity to become more competitive in the international marketplace through the adoption of these new technologies. This development has been particularly visible in the tobacco, cut flower and horticulture sectors, where hundreds of thousands of farmers have acquired modern techniques and been able to meet the higher quality standards required by the international market.

This dual impact of the activities implemented under this service module is exemplified by a project to convert a freezer production plant in China to environmentally friendly technologies. This project resulted in the phasing out of 708 tons of CFCs and at the same time led to an increase in annual production of freezers from 650,000 in 1995 to more than 1 million units in 2001 without the installation of new production capacities. The company increased its exports to developing countries from a few thousand to 170,000 units during the same period. Under an agreement with a US firm, 500,000 freezers were exported in 2002.

While by the end of 2000 almost all countries had successfully achieved the freeze of their CFC consumption at the average level of 1995-1997, they now have to focus their efforts to reduce the consumption and production of CFCs by 50 per cent from their freeze level by January 2005. In the case of carbon tetrachloride (CTC) the target reduction is 85 percent and in methyl bromide 20 percent. The next reduction target date for consumption and production of CFCs by 85 per cent is January 2007, and by 2010 no more CFC, CTC and halons should be produced or consumed by Article 5 countries.

Accordingly, in order to enable the respective countries to meet their forthcoming compliance obligations on time the Executive Committee of the Multilateral Fund decided to:

• Map the remaining compliance needs of each country until 2010.
• Prioritize the funding requests according to the compliance needs.
• Offer increased flexibility to recipient countries in programming and implementing their phase-out programmes.

The principles of the government and compliance driven approach, which have led to several critical decisions since the year 2000, have come fully into effect in the year 2003. UNIDO has adjusted to the new modality and provides its services accordingly. The main services now provided through this service module comprise:

• Policy, strategy and programme design;
• Institutional support; and
• Enterprise level technical assistance.
  

In addition, UNIDO is introducing a new service to generate data and information on the impact that the technology transfer undertaken in the context of the Organization's Montreal Protocol-related services have on increasing productivity, employment and export earnings.

These activities relate to the following sectors:

• Aerosols;
• Foams;
• Halons;
• Solvents;
• Methyl bromide;
• Refrigerants; and
• Process agents

An example of the innovative enterprise-level technical assistance provided by UNIDO in these fields is given by the lead taken by the Organization in promoting liquid carbon dioxide (LCD) blowing technology as the most advanced alternative solution for flexible polyurethane (PU) foam. Patent owners cooperated with UNIDO experts to promote its acceptance as an eligible alternative and formulated an appropriate manual. In order to ensure sustainability and competitiveness, each individual or umbrella project in expanded plastic foams features a technical assistance package that includes:

• The transfer of a selected blowing technology (including a license agreement in cases when the technology is protected by patent);
• The transfer of know-how as an integral part of equipment procurement and engineering services;
• The transfer of expertise and experience through consultancy services and training of personnel;
• Adaptation of the technology during commissioning and trial tests;
• Quality control of final products against the respective standard requirements; and
• Production and market cost analysis of converted processes and products.

The Montreal Protocol-related activities are closely linked to activities carried out under other UNIDO service modules with the common aim of ensuring sustainability. These include:

• Phasing-out of methyl-bromide, which is used for soil fumigation and post-harvest protection treatment, thereby contributing to a better development of the food processing industry through the use of safer raw materials;
• Conversion of technologies used by refrigerator manufacturers, which enables them to produce more efficient appliances and achieve energy reductions at national levels consistent with UNIDO's approach to industrial energy efficiency;
• Identification and application of non-ODS production technologies consistent with the objective of the service module for investment and technology promotion to bring advanced and more appropriate technologies to the marketplace;
• Assistance to local authorities in institutional strengthening for the preparation of regulations, codes of good production and maintenance practices, environmental protection, and occupational health and work place safety, which is consistent with UNIDO's goal to strengthen the legal and regulatory framework for conformity; and
• Provision of capacity building services to strengthen SMEs, which is consistent with UNIDO's goal to assist developing countries in providing an enabling environment for the growth of the private sector.

This service module has a significant global forum component, involving in particular the participation at various meetings to assess the progress of the Montreal Protocol activities. Most of the meetings in which UNIDO participates are gatherings of the policy-making bodies of the Protocol, and are the most important occasions for consultations with government officials, members of the Executive Committee (ExCom) and Secretariat of the Protocol, and the implementing agencies of the Multilateral Fund. These meetings comprise meetings of the Parties, meetings of the ExCom and its sub-committees on project review and on monitoring, evaluation & finance, and meetings of the Implementation Committee. At these meetings policy decisions are made on the current and future activities of the Fund. Furthermore, they give the Parties the possibility to make a comparative analysis among the implementing agencies based on their reported performance and provide the possibility for our Organization to be consulted on these and other substantive issues.

In the UNEP Regional Networking Meeting for ozone officers UNIDO and the other implementing agencies act as a technical resource group advising the participants about the available alternative technologies and on the applications of new decisions of the ExCom in implementing the national programmes.

Other meetings of great importance for the activity and visibility of UNIDO are the meetings of the Ozone Operations Resource Group (OORG) of the World Bank, the Earth Technologies Forum and the meeting of the Inter-Agency Advisory Group (IAG) hosted by the United Nations Environmental Programme (UNEP).

Services provided and expected outputs

(a) Policy, strategy and programme design

In order to enable Article 5 countries to meet their forthcoming compliance obligations, services will be provided to assist Governments in the development and implementation of:

• National phase-out plans (NPPs);
• Sectoral phase-out plans (SPPs); and
• Refrigerant management plans (RMPs).

These services, which will be offered under multi-year agreements, will include the provision of technical and policy advice, institutional strengthening and training support services, and assistance to Governments in the preparation of sectoral surveys and profiles to define specific strategies and requirements in various sectors. In addition, UNIDO will maintain responsibility for the supervision, monitoring, auditing, verification and reporting on the progress and results of these programmes. In this context a methodology for the collection and verification of ODS consumption data by Article 5 countries has been developed by UNIDO for use in connection with the formulation of the NPPs and SPPs, which can be adapted to the specific conditions prevailing in the individual countries.

The precise technical and financial conditions governing the implementation and reporting of the NPPs/SPPs, including the annual ODS phase-out targets ensuring the countries' compliance to the Montreal Protocol, are spelled out in the respective agreements between the Governments and the Executive Committee.

With regard to the RMPs, a significant part of the CFC consumption will be phased out by the introduction of best servicing practice and appropriate equipment for the servicing and maintenance of refrigeration equipment leading to reduced leakages, and through the establishment of a country-wide system for recovery and recycling. This will give local industries another business opportunity to produce refrigerant recovery machines for the RMPs. Apart from the favourable environmental impact, other benefits will include improved working conditions, including occupational health and safety, and the long-term employment of service technicians at service workshops where the changes in refrigerant technology will be implemented.

(b) Support institutions

This service will assist local authorities through institution-strengthening projects for the establishment of national ozone units and the training of national experts (ozone officers, customs officers, etc.). This training will cover the preparation of regulations and codes of good servicing, maintenance, safety and production practices in the context of the RMPs, as well as techniques for the demolition of ODS related equipment.

By assisting the national ozone units in a number of developing countries and economies in transition, UNIDO's Montreal Protocol-related institutional strengthening programmes provide an example for the establishment of national capacities to design, implement and monitor effective measures to foster environmental advancement and related productivity growth.

Examples of activities undertaken in the context of these services include:

• Institutional strengthening, and
• Country programme updates.

(c) Support to enterprises in the compliance period

Through this service UNIDO will assist industry in implementing the NPPs and SPPs. Specific support will be provided for the identification, acquisition and application of state-of-the-art non-ODS production technologies, reorganization and modification of production processes, assessment of the required incremental capital and operating costs, and the procurement and commissioning of equipment incorporating all required safety systems for the conversion of production lines. Assistance will also be provided for any required design modifications, for the quality certification of products to meet latest international quality and safety standards, for the recovery and recycling of refrigerants, and for the training of staff.

The activities undertaken in the context of this service will cover the following industries:

• Aerosols,
• Fumigants,
• Refrigerants,
• ODS production,
• Tobacco-fluffing,
• Foam, and
• Halons.

An example of such technology promotion and transfer activities is given by the technical assistance provided by UNIDO to developing countries in the polymer processing and plastics transformation industry for many years, which has resulted in the establishment of twelve R & D centres for plastics and polymers in various regions. Another is given by the lead taken by UNIDO in promoting LCD blowing technology as the most advanced alternative solution for flexible PU foam, as described above. As a result, UNIDO's share of LCD projects in the foam sector of the Multilateral Fund represents 32 percent in terms of ODP, 28 percent in terms of number of LCD projects and 31 percent in terms of funding.

Assistance will also be given to farmers in phasing out the use of methyl bromide for fumigation by identifying and promoting effective alternatives and providing advice, technology and equipment for their application.

Other assistance provided under this service will be aimed at promoting industrial rationalization through large-scale umbrella and sectoral programmes, optimizing available funds and contributing to the sustainability and market competitiveness of SMEs in specific sub-sectors. In addition, capacity-building services will be provided to Government and industry to enhance domestic entrepreneurial capacities, and the ability of industries, particularly SMEs, to acquire, adapt, absorb and use up-to-date technologies and facilitate market access.

(d) Generation of databases on the impact of Montreal Protocol activities

As indicated above, the transfer of technology supported by UNIDO in the context of its Montreal Protocol-related activities has broader implications than merely the reduction of ODS, and helps to increase industrial productivity, employment and exports in the beneficiary countries. While some data on this broader impact have been generated in the past on the basis of individual projects, these efforts to collect and process such broader economic data will be formalized in the future. This will enable UNIDO to refine and improve its interventions with the aim of maximizing the economic benefits of these interventions. The specific activities carried out in this connection will include:

• The collection, organization and processing of data relating to the economic impact of UNIDO's Montreal Protocol-related technology transfer activities, enabling the Organization to establish a comprehensive database of environmentally friendly (non-ODS) technologies with a full assessment of their technological, economic and financial features;
• The operation and management of a knowledge system built up around this database;
• Monitoring the diffusion and adaptation of these technologies to different economic and operational environments, and their socio-economic impact;
• Establishment of post-conversion contacts with recipient enterprises and other beneficiary groups, and continued collection of relevant data about the experiences and market performance of their products;
• The preparation and dissemination of comparative analyses of the impact on product quality based on the data so collected; and
• The dissemination and/or sharing of this knowledge within UNIDO and beyond to support relevant decision-making processes.

 RELATED PAGES