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Annex V: Declaration on the Multilateral Fund from the delegations of Argentina, Brazil, Chile, China, Colombia, India, Malaysia, Peru, Philippines and Uruguay

The above Article 5 countries, Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer:

Calling upon the spirit of global partnership, with common but differentiated obligations among developed and developing countries, established at the Rio Conference,

Recognizing the positive contribution of the Multilateral Fund for the encouragement of the phase-out of ODS in Article 5 countries,

Concerned about the critical financial situation of the Multilateral Fund,

Concerned also about new restrictions on the access to the already scarce resources of the Fund to Article 5 countries based on policy considerations,

Fully aware of the fact that such tendency could have a very negative impact on article 5 countries' commitment to phase-out ODS,

Acknowledging the need to channel the resources of the Multilateral Fund according to the industrial strategy adopted by Article 5 countries, inter alia, in their country programmes,

Finding the need to provide the domestic industries with elements of credibility, reliability and predictability as regards financial support from the Fund to cover incremental costs,


(a) Article 2 Parties to fulfil their financial pledges to the Multilateral Fund for the Implementation of the Montreal Protocol, in order to assure adequate resources for Article 5 Parties to meet their obligations under the Protocol in the fastest feasible timeframe and the most environmentally safe manner;


(b) Parties to assess properly the need for a new replenishment of the Multilateral Fund in order to cover the financial and technological need of article 5 countries;


(c) Parties to reiterate that, for all sectors and sub-sectors for the phase-out projects in Article 5 countries are presented to the Multilateral Fund for financing, a period of up to four years should be considered during the calculation of incremental operational costs, on the basis of costs prevailing at the time of implementation of projects; this calculation should take place on a case-by-case basis according to the specific characteristics of the projects;

(d) Parties to consider the need to assure adequate financing from the Multilateral Fund for all projects that, according to the respective industrial strategies and specific social, environmental and economic characteristics of article 5 countries, aim at phasing out ODS;

(e) Parties to reiterate the need to assure that Article 5 countries engaged in the phasing out of ODS do not suffer loss of export revenues;

(f) Parties to confirm that companies that may export ODS-free products will be fully supported by the Multilateral Fund, taking into account, inter alia, the benefit of the exchange of technologically advanced products between Article 5 countries and the overall interest in the protection of the ozone layer;

(g) Article 2 countries to ensure the transfer of the best available and environmentally safe alternative technologies to Article 5 countries under fair and most favourable conditions;

(h) Parties to ensure that the alternative technologies financed by the Multilateral Fund for industrial reconversion are adequate and predictable and will not be subject to restrictions in the forthcoming years;


(i) Parties to consider collectively and in the most democratic manner the need to halt the tendency to selectivity and restrictiveness of the Multilateral Fund, for the sake of preserving the commitments of the Montreal Protocol and for the protection of the ozone layer.