Published by the
International Institute for Sustainable Development (IISD)
Vol. 19 No. 21
Wednesday, 27 November 2002
TUESDAY, 26 NOVEMBER 2002
Delegates met in a morning plenary to discuss
process agents, the fixed-exchange-rate mechanism and the review of
the non-compliance procedure. A contact group on illegal trade also
met. Contact groups on the Multilateral Fund replenishment,
interaction between the Implementation Committee and the Executive
Committee, and ozone-depleting substance (ODS) destruction
technologies convened in the afternoon. The Implementation Committee
and a budget committee also met.
MULTILATERAL FUND REPLENISHMENT: Preparatory
segment Co-Chair Catelin announced that Finland and Nigeria will
serve as co-chairs of the Multilateral Fund replenishment contact
group, whose members will comprise: Botswana, Brazil, China,
Colombia, Dominican Republic, Indonesia, Iran, Mauritius and
Venezuela for Article 5 Parties; and Canada, France, Germany, Italy,
Japan, Netherlands, Poland, UK and US for non-Article 5 Parties.
PROCESS AGENTS: The US introduced a draft
decision on process agents submitted by Australia, China and the US
(UNEP/ OzL.Pro.14/CRP.3), stressing the complexity of the issue.
He explained that the draft decision contains a
list of uses of controlled substances as process agents, and that
listed control agents would be treated in the same manner as
feedstocks for non-Article 5 Parties. He also noted that, for
Article 5 Parties, listed controlled substances in plants in
operation before 1 January 1999 would be treated in the same manner
as feedstocks until three years after the Executive Committee
determines that the country’s process agent applications are
eligible for funding. Eligibility is dependent on criteria outlined
in decision X/14 on process agents and on the provision that
projects result in sustained national aggregate reductions in
national process agent consumption. He underscored that this draft
decision would ensure that Article 5 Parties would not be found
non-compliant for reasons beyond their control.
Several Parties, including BRAZIL, EGYPT, INDIA,
POLAND and SWITZERLAND expressed concerns with the draft decision
and, after protracted debate, the US "orphaned" the proposal.
FIXED-EXCHANGE-RATE MECHANISM: Omar El-Arini,
Chief Officer of the Multilateral Fund Secretariat, presented an
update to the final report on the fixed-exchange-rate mechanism (FERM)
for payment of contributions to the Multilateral Fund (UNEP/OzL.Pro.14/8),
which was introduced for a trial period during the current
triennium. He invited Anthony Brough, consultant to the Fund
Secretariat, to outline the update’s findings. Brough noted that,
despite a recent reversal of the general decline of currencies
against the US dollar for much of the triennium, projected losses
from the FERM would amount to US$17.7 million. He highlighted,
however, that this had not hindered allocation of funds by the
Multilateral Fund. Brough reported a lack of conclusive evidence on
the FERM’s overall impacts, remarking that, while it has
administrative advantages for contributors and thus promotes timely
payment, it introduces uncertainty for the Fund Secretariat. Noting
the variety of contribution systems that exist in the international
arena, he said three years is insufficient to evaluate the impacts
of the FERM.
AUSTRALIA, CANADA, the CZECH REPUBLIC, DENMARK
for the EU, NEW ZEALAND and NORWAY supported the continuation of the
FERM. AUSTRALIA, the CZECH REPUBLIC and NORWAY proposed calculation
of the dollar exchange rate as the average over the six months prior
to the Meeting of the Parties (MOP) before the end of the triennium.
The US called for averaging out over a longer period. The EU,
opposed by the US, suggested that Parties consider using the Euro as
the contributing currency. JAPAN expressed concern at the losses
resulting from the FERM. BRAZIL highlighted the FERM’s mixed results
and called for consideration of how to compensate for losses if the
trial period is extended.
Noting lack of consensus, Co-Chair Catelin urged
interested Parties to continue discussions bilaterally.
REVIEW OF THE NON-COMPLIANCE PROCEDURE: The
US introduced a draft decision, submitted by Australia, the EU, New
Zealand and the US, on the non-compliance procedure (UNEP/OzL.Pro.14/CRP.2).
He explained that the draft decision enables
increased continuity of participation in the Implementation
Committee by allowing, inter alia, the possibility of
Committee members to serve three consecutive terms, and the option
for incoming Committee members to invite outgoing members to
participate, in an advisory capacity, in the next Committee meeting.
He noted that the draft decision also hastens the timing of
communications between the Ozone Secretariat and Parties regarding
their compliance status from three to one-and-a-half months, and
urges Parties to submit statistical data on their annual production
of controlled substances within six months following the end of the
year to which the data relate, rather than the current nine months.
He said the draft decision urges countries elected as Implementation
Committee members to attend all meetings, and requests the Ozone
Secretariat to ensure that language difficulties do not hinder the
work of the Implementation Committee.
CANADA and JAPAN supported the draft decision,
and JAPAN, with COLOMBIA, stressed that individuals representing
their country on the Implementation Committee should serve for their
entire term. ARGENTINA and others supported: inviting outgoing
members to participate in the next Committee meeting; urging
Implementation Committee members to attend all meetings; and
requesting the Ozone Secretariat to minimize language difficulties.
ARGENTINA, with BANGLADESH, BOLIVIA, COSTA RICA, UGANDA and others,
opposed extending the length of service of Committee members beyond
two consecutive terms. With COSTA RICA, KENYA, LIBYA and others,
ARGENTINA opposed hastening the timing of communications between the
Ozone Secretariat and Parties, and with BOLIVIA, UGANDA and others,
opposed urging Parties to submit statistical data within the
proposed six months. Underscoring that the draft decision was a
"package deal", AUSTRALIA, the EU and the US withdrew their
ILLEGAL TRADE: The contact group on illegal
trade, chaired by Poland, met in the morning to discuss a draft
decision on monitoring of trade in ODS and preventing illegal trade
in ODS. Some Parties opposed undertaking a study on the labelling of
used ODS and products containing ODS, and stressed the need to avoid
language with funding implications. Parties highlighted the
potential of United Nations Environment Programme (UNEP) regional
networks and other networks for increased cooperation on illegal
trade, and agreed to request a report on the activities of regional
networks on means of combating illegal trade. They could not agree,
however, on the need for Parties to report joint efforts to the
Ozone Secretariat. A draft decision will be presented to MOP-14 on
Wednesday, 27 November.
RESEARCH UNDER THE VIENNA CONVENTION: The
contact group on research under the Vienna Convention, chaired by
Argentina, met during lunch to continue discussions on the funding
of ozone-related monitoring activities in developing countries.
Parties focused on delineating the operational details of a
voluntary trust fund under the Vienna Convention that will provide
financial support to help developing countries meet their research
and monitoring needs. A draft decision will be presented to MOP-14
on Wednesday, 27 November.
MULTILATERAL FUND REPLENISHMENT: The contact
group on the Multilateral Fund replenishment, co-chaired by Finland
and Nigeria, met in the afternoon. The group discussed the
G-77/China proposal to increase the level of funding for 2003-2005
to US$924.6 million. The G-77/China explained how their proposed
funding level was derived and the cost elements involved. Discussion
will continue in Plenary on Wednesday, 27 November.
IMPLEMENTATION COMMITTEE/EXECUTIVE COMMITTEE
INTERACTION: The contact group on interaction between the
Implementation Committee and the Executive Committee, chaired by the
US, met in the afternoon. Delegates discussed the US draft decision
on Executive Committee/Implementation Committee interaction and
agreed to amend text regarding decision-making by the Executive
Committee in situations of non-compliance, and on how the two
Committees interact with each other. A revised draft decision will
be presented to MOP-14 on Wednesday, 27 November.
ODS DESTRUCTION TECHNOLOGIES: The contact
group on ODS destruction technologies, chaired by Australia, met in
the afternoon. The group agreed on a revised draft decision that
simplifies the language and focuses on providing guidance to
Parties. The draft decision will be presented to MOP-14 on
Wednesday, 27 November.
IMPLEMENTATION COMMITTEE: The Implementation
Committee met during lunch to finalize its recommendations for
MOP-14. It agreed to recommend more than 20 decisions, covering
approximately 25 Parties found to be in various states of
non-compliance, including three non-Article 5 Parties. The Committee
also agreed to a decision welcoming the Russian Federation’s return
to compliance. The recommended decisions and full report of the
Implementation Committee will be presented to MOP-14 on Wednesday,
BUDGET COMMITTEE: The budget committee, an
informal group of interested Parties, met in the afternoon to
consider the Ozone Secretariat’s proposed 2003 and 2004 budgets for
the Montreal Protocol Trust Fund (UNEP/OzL.Pro.14/5) and proposed
2004, 2005 and 2006 budgets for the Vienna Convention Trust Fund (UNEP/OzL.Conv.6/5).
The Committee will submit its recommendations to the high-level
IN THE CORRIDORS
Delegates got down to serious business today.
Negotiations on the Multilateral Fund replenishment began in earnest
and a total of seven groups met throughout the day, generating a
level of activity unusual for an ozone meeting.
Regarding the Multilateral Fund replenishment,
some developing country delegates were doubtful that donor Parties
would accept their proposal.
Concerning illegal trade, some participants
expressed concern at the absence of Article 5 representatives during
most of the contact group, and lamented the slow progress since the
decision’s drafting at the 22nd meeting of the Open-Ended Working
Group (OEWG-22). One observer noted that discussions at OEWG-22 had
"torn the heart out" of the recommendations in the Ozone
Secretariatï¿½s study considered at that meeting, bits of which have
now been reintroduced. Notably, observers expressed satisfaction
with the emphasis on regional efforts to combat illegal trade in
THINGS TO LOOK FOR TODAY
Plenary: The Plenary will reconvene at 10:00
am on the 3rd floor to consider the remaining agenda items before
the preparatory segment, including recommendations of the
Implementation Committee and draft decisions prepared by the contact