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Decision IV/18: Financial mechanism

The Fourth Meeting of the Parties decided in Dec. IV/18:

I

  1. to establish the Financial Mechanism, including the Multilateral Fund provided for in Article 10 of the Montreal Protocol as amended at the Second Meeting of the Parties;
  2. to make the Multilateral Fund operative from 1 January 1993 and to transfer to it any resources remaining in the Interim Multilateral Fund on that date;
  3. to set the total contributions to the Fund for 1993 at 113.34 million and to commit to a replenishment of the Fund in order to meet on grant or concessional terms the requirements of Parties operating under paragraph 1 of Article 5 of the Protocol, in respect of agreed incremental costs as indicated by the figures 340-500 million for 1994-1996. The total contribution to the Fund for 1994 will not be less than the commitments for 1993;
  4. to establish the Executive Committee;
  5. to adopt the terms of reference for the Multilateral Fund and for the Executive Committee, as set out in Annex IX and Annex X, respectively, to the report of the Fourth Meeting of the Parties;
  6. to endorse the recommendations of the Executive Committee contained in paragraph 108 of UNEP/OzL.Pro/ExCom/8/29 and to approve the indicative list of the categories of incremental costs, as set out in Annex VIII to the report of the Fourth Meeting of the Parties, in accordance with paragraph 1 of Article 10 of the amended Protocol;
  7. to call on the Executive Committee to continue to operate under the agreements, procedures and guidelines applicable to the Interim Multilateral Fund;
  8. to accept with appreciation the offer of Canada to host the Secretariat of the Multilateral Fund on the same terms as they hosted the Secretariat of the Interim Multilateral Fund and to locate the Secretariat at Montreal, Canada;

II

  1. to request the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol, in the light of its terms of reference, and drawing on the various reports and assessments it has at its disposal, and with the cooperation and assistance of the implementing agencies, and independent advice as appropriate or necessary, to submit to the Open-ended Working Group of the Parties at its next meeting a report comprising:
    1. A report on the operation of the Financial Mechanism since 1 January 1991;
    2. Its three-year plan and budget (as required by paragraph 10 (b) of its terms of reference) based on:
      1. The needs of Parties operating under paragraph 1 of Article 5 of the Protocol;
      2. The capacity and performance of the implementing agencies; and
      3. The strategies and projects to be implemented by Parties operating under paragraph 1 of Article 5 of the Protocol;
  2. to request the Open-ended Working Group to assess the report of the Executive Committee and to make recommendations, as appropriate, to the Fifth Meeting of the Parties;
  3. to request the Open-ended Working Group to make a recommendation to the Fifth Meeting of the Parties on the level of replenishment for the Multilateral Fund for the period 1994-1996, in the light of:
    1. Decisions made by the Fourth Meeting of the Parties on this issue;
    2. The report prepared by the Executive Committee;
    3. Other assessments on the level of resources needed for the period 1994-1996 available to the Open-ended Working Group;
    4. The status of commitments and disbursements of the Financial Mechanism;
  4. to evaluate and review, by 1995, the Financial Mechanism established by Article 10 of the Protocol and section I of the present decision, with a view to ensuring its continued effectiveness, taking into account chapters 9, 33 and 34, and all other relevant chapters, of Agenda 21 as adopted by the United Nations Conference on Environment and Development, held in Rio de Janeiro in June 1992.