Distr.
GENERAL

UNEP/OzL.Pro.12/2
2 October 2000

ORIGINAL: ENGLISH

TWELFTH MEETING OF THE PARTIES
TO THE MONTREAL PROTOCOL ON
SUBSTANCES THAT DEPLETE THE
OZONE LAYER

Ouagadougou, 11-14 December 2000

REPORT OF THE EXECUTIVE DIRECTOR TO THE TWELFTH MEETING OF THE PARTIES TO THE MONTREAL PROTOCOL

INTRODUCTION

1. The present report reviews the status of implementation of the Montreal Protocol and the actions taken to implement the decisions of the Eleventh Meeting of the Parties to the Montreal Protocol. It also summarizes the issues that will be placed before the Twelfth Meeting of the Parties, to be held in Ouagadougou from 11-14 December 2000.

2. A report on the status of the implementation of the decisions of the Eleventh Meeting of the Parties, held in Beijing from 29 November to 3 December 1999, is annexed to the present report. Paragraph 30 of that report also briefly describes actions taken to implement some of the decisions of the Tenth Meeting of the Parties. As a result of the implementation of the provisions of the Protocol and of the decisions of the Meetings of the Parties, the Twelfth Meeting of the Parties will have, inter alia, the following matters before it for consideration and decision.

II. ISSUES BEFORE THE TWELFTH MEETING OF THE PARTIES

A. Proposed adjustments to the Montreal Protocol relating to the controlled substance in Annex E

3. A proposal to adjust Article 2H of the Montreal Protocol with a view to rectifying a technical drafting error in decision XI/4 adopted at the Eleventh Meeting of the Parties in Beijing was considered by the twentieth meeting of the Open-ended Working Group of the Parties to the Protocol in Geneva in July 2000. In preparing a draft text to correct that mistake, the proposers of the draft decision had discovered a further unintended consequence of the technical error. The figure appearing in paragraph 5 of Article 2H for calculating basic domestic needs was 15 per cent of 1991 production, but it should have been 10 per cent to retain consistency with the rest of Article 2H. The Chair of the Legal Drafting Group was confident of the intent of the original proposers of the Beijing Adjustment and of the drafting group in Beijing, and therefore a proposal to change the figure to 10 per cent had been included in the draft decision alongside the correction of the technical error.

4. The Working Group agreed to forward the draft decision and the draft adjustments to the Twelfth Meeting of the Parties, on the understanding that the proposal was of a purely technical nature and was by no means intended to introduce any new element of adjustment beyond what the Parties had agreed at the Eleventh Meeting. The draft decision and the report of the Legal Drafting Group have been forwarded to the Twelfth Meeting of the Parties as document UNEP/OzL.Pro.12/3.

5. Proposal for action. The Twelfth Meeting of the Parties may wish to consider the report of the Legal Drafting Group and approve the draft decision.

B. The need for further adjustments to the phase-out schedule for hydrochlorofluorocarbons (HCFCs) for Parties operating under paragraph 1 of Article 5

6. At the twentieth meeting of the Open-ended Working Group of the Parties, the European Community introduced a proposal for an adjustment to the Montreal Protocol relating to controls on HCFC consumption in developing countries. Following informal consultations among the interested parties and further discussion during the twentieth meeting of the Working Group, it was decided that the provisional agenda for the Twelfth Meeting of the Parties would include an item entitled "The need for further adjustments to the phase-out schedule for hydrochlorofluorocarbons for Parties operating under paragraph 1 of Article 5". It was also decided that the annotations to the agenda would refer to the European Community's proposal as well as an alternative proposal put forward by some other Parties under which the Parties would report that they had considered the matter and decided that there was no need for any adjustment.

7. Proposal for action. The Twelfth Meeting of the Parties may wish to consider the proposal by the European Community and also the alternative proposal put forward by some other Parties and make a decision.

C. Measures to facilitate the transition from chlorofluorocarbon (CFC)-based metered dose inhalers (MDIs)

8. At the twentieth meeting of the Open-ended Working Group, a representative of the European Community proposed a draft decision for adoption at the Twelfth Meeting of the Parties on measures to facilitate the transition from CFC-containing metered-dose inhalers (MDIs). Following the discussion, the Working Group agreed to set up an open-ended contact group, chaired by the representative of the European Community, to prepare a revision of the proposal, taking into account the issues raised and the amendments proposed in the debate. A revised version of the proposal from the contact group will be presented at the preparatory segment of the Twelfth Meeting of the Parties for consideration.

9. Proposal for action. The Twelfth Meeting of the Parties may wish to consider the revised version of the proposal from the contact group and make a decision.

D. Membership of the Implementation Committee

10. In accordance with the non-compliance procedure (1998), the Implementation Committee consists of 10 Parties elected for two years on the basis of equitable geographical distribution. Outgoing Parties may be re-elected for one consecutive term. In decision XI/8, the Eleventh Meeting of the Parties confirmed the positions of Mali, Poland, Saudi Arabia and the United Kingdom of Great Britain and Northern Ireland as members of the Committee for one further year and selected Argentina, Bangladesh, Czech Republic, Ecuador, Egypt and United States of America as members of the Committee for a two-year period.

11. Proposal for action. The Twelfth Meeting of the Parties may wish to select new members of the Implementation Committee for a two-year period to replace Mali, Poland, Saudi Arabia and the United Kingdom of Great Britain and Northern Ireland.

E. Membership of the Executive Committee

12. In accordance with the terms of reference of the Executive Committee of the Multilateral Fund approved by the Fourth Meeting of the Parties, the Executive Committee consists of 14 members, seven from the group of Parties operating under Article 5, paragraph 1, and seven from the group of Parties not so operating. Each group elects its Executive Committee members, which must be formally endorsed by the Meeting of the Parties. The Chair and the Vice-Chair must be selected from among the 14 Executive Committee members. The office of the Chair is subject to rotation, on an annual basis effective 1 January of the year in which the term of office falls, between the Parties operating under paragraph 1 of Article 5 and the Parties not so operating. By its decision XI/9, the Eleventh Meeting of the Parties endorsed the selection of Australia, Germany, Japan, the Netherlands, Slovakia, Sweden and the United States of America as members of the Executive Committee of the Multilateral Fund representing Parties not operating under paragraph 1 of Article 5 of the Montreal Protocol and the selection of Bahamas, Brazil, China, Dominican Republic, India, Tunisia and Uganda as members representing Parties operating under paragraph 1 of Article 5, for one year effective from 1 January 2000. The Meeting also noted the selection of India as Chair, and the Executive Committee confirmed Germany as Vice-Chair.

13. Proposal for action. The group of Parties not operating under Article 5, Paragraph 1, may wish to select the members representing them in the Executive Committee for the next year and also the Chair of the Committee for the next year. The group of Parties operating under Article 5, paragraph 1, may also select their seven representatives in the Committee and the Vice-Chair for the next year. The Twelfth Meeting of the Parties may wish to endorse the selected representatives and take note of the selected Chair and Vice-Chair of the Committee.

F. Co-Chairs of the Open-ended Working Group of the Parties to the Montreal Protocol

14. In accordance with decision XI/10 of the Eleventh Meeting of the Parties, Mr. John W. Ashe of Antigua and Barbuda and Mr. Milton Catelin of Australia have served as Co-Chairs of the Open-ended Working Group of the Parties to the Montreal Protocol for 2000.

17. Proposal for action. The Twelfth Meeting of the Parties may wish to consider the chairmanship of the Open-ended Working Group in 2001.

G. Data reporting by the Parties

16. The report of the Secretariat on information provided by the Parties in accordance with Article 7 of the Protocol (UNEP/OzL.Pro.12/4) shall be placed before the Parties for consideration. The same report will be placed before the Implementation Committee in accordance with the non-compliance Procedure for the Montreal Protocol.

17. Proposal for action. The Twelfth Meeting of the Parties may wish to consider any recommendations of the Implementation Committee at its twenty-fifth meeting to be held immediately prior to the Twelfth Meeting of the Parties, and make appropriate decisions that will enable any non-complying Parties to return to compliance.

H. Status of ratification of the Vienna Convention, the Montreal Protocol and the amendments to the Protocol

18. Since the Eleventh Meeting of the Parties, two states (Angola and Haiti) have become Parties to the Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol. Five Parties to the Montreal Protocol have ratified the London Amendment, and eight have ratified the Copenhagen Amendment, bringing the total number of Parties to the Vienna Convention to 176, the total number of parties to the Montreal Protocol to 175, the total number of parties to the London Amendment to 142 and the total number of parties to the Copenhagen Amendment to 111. The Montreal Amendment, adopted by the Ninth Meeting of the Parties in 1997, has to date been ratified by 43 Parties and entered into force on 10 November 1999. The Beijing Amendment, adopted by the Eleventh Meeting of the Parties in 1999, has to date been ratified by only one Party - Chile. It should be borne in mind that universal participation by ratification of the Amendments is necessary to ensure the protection of the ozone layer.

19. Proposal for action. The Twelfth Meeting of the Parties may wish to urge all States that have not yet done so to become party to the Vienna Convention, the Montreal Protocol and the Amendments to the Protocol as soon as possible.

I. Long-term strategy for the collection, storage, disposal and destruction of ozone-depleting substances and equipment containing ozone-depleting substances

20. The twentieth meeting of the Open-ended Working Group considered the question of disposal technologies for ozone-depleting substances (ODS), including the challenges and obstacles encountered in the development of ODS management strategies, environmental impacts and cost of the available technologies. Other issues considered were the most appropriate approach to the development of disposal programmes by Article 5 and non-Article 5 Parties, and identification of international mechanisms that could help Parties in developing programmes for the management of ozone-depleting substances. A draft decision on the disposal of controlled substances that was discussed during the meeting and forwarded to the Twelfth Meeting of the Parties is contained in document UNEP/OzL.Pro.12/8.

21. Proposal for action. The Twelfth Meeting of the Parties may wish to consider the draft decision forwarded by the Working Group and make an appropriate decision.

J. Quantities of controlled substances authorized under the essential-use process

22. Four Parties have submitted essential-use nominations for 2001 and 2002: Australia; European Community; and the United States of America have submitted nominations for CFCs; and Poland has submitted nominations for CFCs and CFC-113. The report of the Technology and Economic Assessment Panel on the nominations of these essential-use exemptions for 2001 and 2002 was considered by the Open-ended Working Group at its twentieth meeting. The Working Group's consideration of essential-use is discussed at paragraphs 20 to 36 of the report of its twentieth meeting (UNEP/OzL.Pro/WG.1/20/3), and its recommendations are contained in annex I to that report. The recommendations are also reproduced in the annex to the compendium of draft decisions being submitted to the Twelfth Meeting of the Parties (UNEP/OzL.Pro.12/8). The quantity of ozone-depleting substances already approved as essential-use exemptions for 2001 by the Meeting of the Parties amounts to 6,460.95 tonnes. This figure will be increased to 6,856.75 tonnes should the present recommendation be approved. The amount requested for the year 2002 is 6,059.95 tonnes.

23. Proposal for action. The Twelfth Meeting of the Parties may wish to make an appropriate decision on the recommendations of the Working Group.

K. Measures to make halons available for essential/critical uses by Parties operating under paragraph 1 of Article 5

24. At the twentieth meeting of the Open-ended Working Group, the representative of India introduced a draft decision pointing out that shortages of halons in various countries had recently arisen, especially when production had been or was being phased out, and that the cost of recycled halons that were available was prohibitive. Other representatives said that, in some areas, surplus of halons existed to the extent that proposals for destruction had been put forward, and that the UNEP Halon Information Clearing House was a possible source of information on where halons could be obtained. The Working Group agreed that the matter would be taken up again at the Twelfth Meeting of the Parties.

25. Proposal for action. The Twelfth Meeting of the Parties may wish to consider this matter and take an appropriate decision.

L. Use of ozone-depleting substances as process agents

26. At the twentieth meeting of the Open-ended Working Group, some representatives believed that there was a need to clarify whether or not the use of ozone-depleting substances as process agents had been counted as a use of a controlled substance prior to the Tenth Meeting of the Parties, at which their status had been clarified by decision X/14. The 1992 UNEP report, Aerosols, sterilants, carbon tetrachloride and miscellaneous uses, Volume 5,1/ was cited by one representative, who stated that the largest use of carbon tetrachloride outside CFC production was probably as an inert solvent in chlorination reactions such as in the production of chlorinated rubber. Some other representatives considered that any such discussion was premature in that the Parties had decided at their Tenth Meeting in 1998 to review the issue in 2001 on the basis of reports on the issue from the Technology and Economic Assessment Panel and the Executive Committee. Following informal consultations, the Working Group decided to re-examine the matter at its twenty-first meeting and to determine at that time whether a contact group should be set up to discuss it further.

27. Proposal for action. The Twelfth Meeting of the Parties may wish to consider this matter and make an appropriate decision.

M. Prevention of illegal trade in ozone-depleting substances and products containing ozone-depleting substances

28. A draft decision aiming at prevention of illegal trade in ozone-depleting substances and products containing ozone-depleting substances was considered by the twentieth meeting of the Open-ended Working Group of the Parties. Proposers of the draft decision hoped that, if adopted, the decision would assist customs officers in detecting ozone-depleting substances and distinguishing between products containing ozone-depleting substances and mixtures containing ozone-depleting substances, and thereby help to control illegal trade. It is believed that illegal trade is a matter likely to be of growing concern as the phase-out process steadily reduces the availability of particular substances.

29. Proposal for action. The Meeting of the Parties may wish to consider the draft decision forwarded by the Working Group.

N. New ozone-depleting substances - information on hexachlorobutadiene

30. At the twentieth meeting of the Open-ended Working Group, the representative of Canada informed the Working Group that a recent assessment in his country had identified hexachlorobutadiene as an ozone-depleting substance with an ozone-depleting potential (ODP) of 0.07 and an atmospheric lifetime of three years. He said that the substance was not currently used in Canada, but that it was listed by the Organisation for Economic Cooperation and Development (OECD) as a "high-production chemical", implying that at least one OECD member had production greater than 10,000 tons. Canada promised to send a formal notification to the Secretariat, which would be placed before the Twelfth Meeting of the Parties.

31. The information received from Canada on this substance has been communicated to all Parties as document UNEP/OzL.Pro.12/Inf.2. It has also been referred to the Scientific, Environmental Effects and Technology and Economic Assessment Panels for their assessment and comments. Comments on this substance from the Assessment Panels will be communicated to all Parties in due course.

32. Proposal for action. The Twelfth Meeting of the Parties may wish to consider the information provided by Canada and any other comments related to this substance and make an appropriate decision.

O. Request by Kyrgyzstan to be classified as a Party operating under Article 5 of the Montreal Protocol

33. Kyrgyzstan has requested that it be classified as a Party operating under Article 5 of the Montreal Protocol, citing two reasons:

1. The difficult economic situation that has necessitated the United Nations to classify it as a developing country;
2. Its per capita gross domestic product, which, while it was $340.6 for 1998, is estimated at $248.3 for 1999.

The communication from the Government of Kyrgyzstan is contained in document UNEP/OZL.Pro.12/INF/3. The per capita consumption reported by Kyrgyzstan for substances in Annex A of the Protocol for 1997 was only 0.002 kg per capita.

34. Proposal for action. The Twelfth Meeting of the Parties may wish to discuss this request and make an appropriate decision.

P. Compliance issues considered by the Implementation Committee

35. The Implementation Committee under the non-compliance procedure for the Montreal Protocol will hold its twenty-fifth meeting on 9 December 2000, immediately prior to the Twelfth Meeting of the Parties, to consider the data report on production and consumption of ozone-depleting substances under Article 7 of the Montreal Protocol (document UNEP/OzL.Pro.12/4), as well as other compliance issues. The report of the Committee will be made available at the Twelfth Meeting of the Parties.

36. Proposal for action. The Twelfth Meeting of the Parties may wish to make appropriate decisions on compliance issues that the Implementation Committee may recommend.

Q. Financial statement and budget for the Trust Fund of the Montreal Protocol

37. The financial report on the Trust Fund for the Montreal Protocol (UNEP/OzL.Pro.12/6) and the budget of the Secretariat for 2001 and 2002 (UNEP/OzL.Pro.12/5) will be placed before the Twelfth Meeting of the Parties for consideration and approval.

38. Proposal for action. The Twelfth Meeting of the Parties to the Montreal Protocol may wish to take note of the financial report and approve the proposed budget of the Montreal Protocol Trust Fund for 2001 and 2002.

1. The Beijing Declaration on Renewed Commitment to the Protection of the Ozone Layer has been widely disseminated through the OzonAction Newsletter. It was the inspiration behind this year's International Day for the Preservation of the Ozone Layer, and was discussed at the twelfth meeting of the Forum of Ministers of the Environment of Latin America and the Caribbean, held in Bridgetown, Barbados, from 2 to 7 March 2000.

2. The text of the adjustments was sent to United Nations Headquarters in New York. The Secretary-General of the United Nations, acting in his capacity as Depositary of the Montreal Protocol, transmitted the Beijing adjustments to the Parties in the six official languages of the United Nations on 28 January 2000. The adjustments entered into force on 28 July 2000.

3. On 28 January 2000, the Secretary-General, acting as Depositary, formally notified all Governments of the amendment to the Montreal Protocol adopted in Beijing in the depositary notification reference C.N.1231.1999.TREATIES-1 of 28 January 2000. Chile is the first and only party to have ratified the Beijing Amendment to date. The Amendment will enter into force on 1 January 2001, provided that at least 20 instruments of ratification of the Amendment are deposited with the Depositary by that date. In the event this condition is not satisfied, the Amendment will enter into force on the ninetieth day following the date on which the twentieth instrument of ratification is deposited with the Depositary.

4. Payments by parties to the fourth replenishment of the Multilateral Fund were worked out at the Eleventh Meeting of the Parties. Pledges were indicated in United States dollars and national currencies for parties who qualify to use the fixed-exchange-rate mechanism.

5. The United Nations Office at Nairobi (UNON), in its capacity as Treasurer of the Multilateral Fund, has proceeded with the implementation of the fixed-exchange-rate mechanism in cooperation with the United Nations Environment Programme (UNEP). In letters to the Parties calling for payments of pledges for the year 2000, UNON has informed qualified countries that they may make their payments using the fixed-exchange-rate mechanism. UNEP and UNON are keeping track of the payments to the Multilateral Fund's fourth replenishment with a view to undertaking a study for the review of the fixed-exchange-rate mechanism at the end of 2001 as called for by decision XI/6.

6. The Secretariat has informed UNON, as Treasurer of the Multilateral Fund, and Mr. Omar El-Arini, Chief Officer of the Multilateral Fund, of the amount by which the Fund has been replenished.

7. Notices requesting payment of the year 2000 instalment were sent out early this year according to each party's contribution and its eligibility to use the fixed-exchange-rate mechanism as set out in annex VI to the report of the Eleventh Meeting of the Parties.

8. The Secretariat notified Argentina, Bangladesh, the Czech Republic, Ecuador, Egypt and the United States of America of their nomination to membership of the Implementation Committee and requested details of their representation.

9. No action was required with regard to decision XI/9.

10. No action was required with regard to decision XI/10.

11. Since the Eleventh Meeting of the Parties, two states (Angola and Haiti) have become Parties to the Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol. Five Parties to the Montreal Protocol have ratified the London Amendment, and seven have ratified the Copenhagen Amendment, bringing the total number of Parties to the Vienna Convention to 176, the total number of Parties to the Montreal Protocol to 175, the total number of Parties to the London Amendment to 142 and the Copenhagen Amendment to 111. The Montreal Amendment, adopted by the Ninth Meeting of the Parties in 1997, has to date been ratified by 43 Parties. The Amendment entered into force on 10 November 1999. The Beijing Amendment, adopted by the Eleventh Meeting of the Parties in 1999, has to date been ratified only one Party - Chile. It should be borne in mind that universal participation by ratification of the Amendments is necessary to ensure the protection of the ozone layer.

12. No action was required with regard to decision XI/12.

13. The Secretariat communicated this decision to the Technology and Economic Assessment Panel.

14. In response to decision VIII/9 and the decisions on essential uses by previous Meetings of the Parties, the Secretariat sent reminders to Parties that were granted essential-use exemptions. Reporting accounting frameworks for the following Parties are contained in the April 2000 report of the Technology and Economic Assessment Panel: Australia (1998, 1999), Canada (1998, 1999), European Community (1997, 1998, 1999), Hungary (1997, 1998, 1999), Japan (1998, 1999), Poland (1997, 1998, 1999), Russian Federation (1997, 1998), Switzerland (1998) and United States of America (1997, 1998, 1999).

15. No action was required with regard to decision XI/15.

16. The Secretariat has communicated this decision to the Parties. The decision requests each non-Article 5 Party to develop a strategy for the management of chlorofluorocarbons and submit it to the Secretariat by July 2001.

17. The Secretariat sent letters of appreciation to the Scientific, Environmental Effects, and Technology and Economic Assessment Panels.

18. The Secretariat also sent a copy of decision XI/17 to the three panels and, as provided in the decision, requested them to update their 1998 reports in 2002 and submit them to the Secretariat by 1 January 2003 for consideration by the Open-ended Working Group and by the Fifteenth Meeting of the Parties to the Montreal Protocol in 2003. The Co-Chairs of the Scientific Assessment Panel have invited Parties to nominate experts to participate in the preparation of the 2002 assessment.

19. The Secretariat sent letters to the Scientific Assessment Panel, the Intergovernmental Panel on Climate Change and the International Civil Aviation Organization expressing the appreciation of the Parties for the work of those bodies and recommending that the collaboration between the two panels continue.

20. The Secretariat communicated these decisions to the Scientific Assessment and Technology and Economic Assessment Panels.

21. The approved budget for the year 2000 was $3,679,679. As at 31 August 2000, contributions towards the sums pledged for the year 2000 amounted to $1,353,248 (36.78% of the pledges).

22. Of the $4,139,955 in unpaid pledges for previous years brought forward to 1 January 2000, $1,238,102 (29.91%) had been paid as of 31 August 2000.

23. The Secretariat communicated the appreciation of the Parties to Mr. Mohamed El-Ashry, Chief Executive Officer and Chair of the Global Environment Facility.

24. The contents of paragraphs 3 and 7 of this decision were communicated to the relevant Parties for necessary action.

25. The Secretariat has communicated the contents of these two decisions to Bulgaria and Turkmenistan. A report on progress in their implementation is contained in the data report for the Twelfth Meeting of the Parties, document UNEP/OzL.Pro.12/4.

26. The group of experts on Harmonized System Customs Codes has interacted as an internet discussion group and finalized the allocation of customs codes under the Harmonized System to all pure substances (not mixtures) controlled by the Montreal Protocol.

27. This decision was communicated to Mr. Omar El-Arini, Chief Officer of the Multilateral Fund secretariat.

28. The Secretariat communicated this request by the Parties to the Technology and Economic Assessment Panel.

29. The Secretariat is following closely the arrangements being made by the Government of Burkina Faso for the Twelfth Meeting of the Parties, to be held from 11 to 14 December 2000 in Ouagadougou. The preparatory segment of the meeting will take place between 11 and 12 December 2000 and the high-level segment on 13 and 14 December 2000.

30. Additionally, the Secretariat has been following up with the Parties on their reporting and implementation of decisions X/7 (halon management strategies), X/8 (new substances with ozone-depleting potential) and X/11 (quarantine and pre-shipment exemption). A report on Party reporting and implementation will be circulated to all Parties.