Daily report for 25 November 2002

After opening remarks, delegates adopted the agenda with modifications, and discussed: research funding needs under the Vienna Convention; the Multilateral Fund replenishment; the status of ozone-depleting substance (ODS) destruction technologies; essential-use exemptions; interaction between the Multilateral Fund Executive Committee and the Implementation Committee; and issues related to the climate change regime.

OPENING CEREMONY

The Director General of the Italian Ministry of the Environment and Territory, Corrado Clini, emphasized the importance of concentrating on ODS phase out in developing countries, the development of technology for the destruction of dangerous substances, and combating illegal trade. Highlighting that the World Summit for Sustainable Development (WSSD) favoured partnerships to deal with sustainable development, he noted the Multilateral Fund as a concrete and effective partnership that should serve as a reference for other organizations.

Ozone Secretariat Executive Secretary Marco Gonzles welcomed delegates on behalf of United Nations Environment Programme (UNEP) Executive Director Klaus Tpfer. After highlighting a number of priority agenda items, Gonzles stressed the importance of coordination with other international bodies, including the World Trade Organization (WTO), UNEP, the UN Framework Convention on Climate Change (UNFCCC) and the Basel Convention on the Control of Transboundary Movements of Hazardous Waste.

PLENARY

ADOPTION OF THE AGENDA: Preparatory segment Co-Chair Catelin (Australia) introduced the provisional agenda (UNEP/OzL.Conv.6/1-UNEP/OzL.Pro.14/1) and reported a request from South Africa to withdraw item 6 on methyl bromide phase out in South Africa. Regarding issues under "other matters", the US proposed addressing the interaction between the Implementation Committee and the Executive Committee. COLOMBIA, with CANADA and CHINA, suggested discussing the relationship between the Montreal Protocol and the WTO, while the DOMINICAN REPUBLIC requested consideration of critical-use exemptions for methyl bromide for non-Article 5 Parties (developed countries). KENYA proposed addressing modalities and procedures for methyl bromide critical use by Article 5 Parties (developing countries), and the EUROPEAN COMMUNITY suggested discussion of expedited procedures for adding new ODS to the Protocol, and ODS recovery. CUBA called for consideration of policies for the service sector and chiller end use. ARGENTINA, with CONGO, highlighted the need to discuss research funding. CHINA, with BENIN, urged financial support for Article 5 Parties efforts to phase out ODS. The agenda was adopted with these modifications.

STATUS OF RATIFICATION: Executive Secretary Gonzles highlighted the recent ratification by Guinea Bissau of all the ozone treaties.

COP-5 BUREAU RESEARCH RECOMMENDATIONS: Fabio Fajardo-Moros (Cuba), Vienna Convention Bureau President, introduced the funding situation regarding ozone-related monitoring activities in developing countries (UNEP/OzL.Conv.6/ INF/1). ARGENTINA, with the CZECH REPUBLIC, stressed the importance of research activities, as included in the WSSD Plan of Implementation. COSTA RICA, with ARGENTINA, DENMARK for the EU, and others, noted that financial support for ozone monitoring is necessary to evaluate the Montreal Protocols effectiveness. SWITZERLAND and JAPAN asked for additional information on funding for research and observation activities. ARGENTINA supported use of the Vienna Convention Trust Fund to finance these activities. CANADA stated that any use of Vienna Convention Trust Fund surpluses should be for specific projects with specific time frames.

The EU emphasized the need for improved understanding of the relationship between ozone depletion and climate change. The CZECH REPUBLIC announced plans to contribute US$ 30,000 50,000 to a three-year support and training programme. BOLIVIA, COLOMBIA, CONGO, GEORGIA and KENYA requested support for their national monitoring efforts. BOTSWANA and EGYPT highlighted the need to take into account health effects, while CHILE suggested that scientific data be made publicly available.

The World Meteorological Organization (WMO) presented its proposal for ozone and ultraviolet (UV) measurement over a five-year period, including: ground-based column ozone calibration; UV instrument calibration; instrument repair and upgrading; operator training; and creation of new ozonesonde stations in developing countries. The WMO emphasized the pressing need for calibration, notably in 17 developing countries for 2003-2004, and highlighted the limited funding available for monitoring and calibrating even in developed countries.

The Ozone Secretariat noted that the current terms of reference for the Vienna Convention Trust Fund would not allow allocation of funds for the WMO proposal. SWITZERLAND suggested establishing a special initiative within the Trust Fund and JAPAN said the Ozone Secretariat could be mandated to manage such work under the Trust Fund. A contact group, chaired by Argentina, met during lunch to continue discussions.

MULTILATERAL FUND REPLENISHMENT: The TECHNOLOGY AND ECONOMIC ASSESSMENT PANEL (TEAP) presented the Supplementary Report on the 2003-2005 Multilateral Fund Replenishment, which addresses additional information requested by the Ad Hoc Working Group on Replenishment at the 22nd Open-Ended Working Group (OEWG-22). He noted that the Supplementary Report changes several components used to calculate the total funding requirement, including: investment projects for the CFC consumption sector; funding requirements for production phase out; Institutional Strengthening project costs; and agency support costs. The TEAP estimates the total funding requirement for 2003-2005 to be between US$530.5-568.7 million.

VENEZUELA, for G-77/CHINA, and supported by numerous Article 5 Parties, noted the importance of adequate funding for the next triennium, when Article 5 Parties must meet ODS targets. He supported the replenishment of the Multilateral Fund with US$924.6 million. CANADA, on behalf of the "Like-minded Group", with several non-Article 5 Parties, supported the TEAPs report as a good basis for discussion. The EU noted that the latest Executive Committee decisions, especially on carbon tetrachloride and methyl bromide, would assist in assessing required funding levels. IRAN, supported by INDIA, highlighted the need to avoid undesirable effects on small and family-based enterprises. BRAZIL noted concerns related to data, new Parties requests for financial assistance, and reclassification of countries. GEORGIA, supported by BOSNIA AND HERZEGOVNIA, called for a new Central and Eastern European regional network. GREENPEACE urged delegates to support the funding level proposed by Article 5 Parties and asked these Parties to choose technologies that do not contribute to ozone depletion. A contact group composed of nine Article 5 Parties and nine non-Article 5 Parties was established to continue discussions.

DATA REPORTING: Introducing ODS data reported by Parties (UNEP/OzL.Pro/14/3), Executive Secretary Gonzles said 131 Parties have submitted data for 2001 and 157 for 2000. He noted that the Implementation Committee has discussed this information in detail and will forward its recommendations to MOP-14.

ESSENTIAL-USE EXEMPTIONS: Executive Secretary Gonzles recalled that seven Parties applied for exemptions for 2003 and 2004, amounting to 6,000 and 5,000 tonnes respectively, and that OEWG-22 recommended a draft decision to this effect. Noting that these requests are significantly smaller than the 16,000 tonnes approved for 1996, he highlighted non-Article 5 Parties adoption of new technologies.

POLAND and UZBEKISTAN said that their submitted exemption nominations are not included in the list. Recalling decision XI/ 15, which eliminates certain uses from the global exemption for laboratory and analytical uses from 2002, POLAND reported that non-ODS alternatives are not yet fully developed for such uses. He suggested, and the TEAP agreed, that Poland apply for an emergency-use exemption.

STATUS OF ODS DESTRUCTION TECHNOLOGIES: AUSTRALIA, supported by CANADA and the EU, proposed to finalize its draft decision on the status of ODS destruction technologies submitted at OEWG-22. JAPAN queried whether the destruction and removal efficiencies stipulated in the draft decision represent mandatory obligations and are achievable. Emphasizing the issues complexity, the TEAP stated that the efficiencies could be achieved in "virtually all" facilities if properly managed.

ILLEGAL TRADE: The Ozone Secretariat recalled draft decisions on illegal trade developed at OEWG-22. A contact group was established to continue discussions.

CLARIFICATION OF TERMINOLOGY: POLAND, supported by the US, underscored the need to avoid future discrepancies and the problems involved in changing the meaning of certain terms due to prior national ratification. Co-Chair Catelin requested Poland and the US to prepare a draft decision.

INTERACTION WITH THE CLIMATE CHANGE REGIME: The Ozone Secretariat introduced the UNFCCC COP-8 decision on the relationship between efforts to protect the ozone layer and the global climate system (UNEP/OzL.Pro.14/INF/5). AUSTRALIA, with COLOMBIA, expressed disappointment with the COP-8 decision, but stated that she would not oppose it if given further information on its financial implications. ARGENTINA supported linking the two conventions, while JAPAN recommended preparing a report containing factual analysis and policy elements. The EU said it will submit a draft decision on this matter.

APPLICATION BY ARMENIA FOR RECLASSIFICATION: ARMENIA, supported by AUSTRALIA, CANADA, the EU, the US and the CZECH REPUBLIC on behalf of the Eastern European Group, requested reclassification as an Article 5 Party, emphasizing its small size and low Gross Domestic Product. Responding to a query from MAURITIUS, the Ozone Secretariat clarified that Armenias CFC consumption is 0.01 kg per capita per year, below the threshold of 0.3 kg required for Article 5 Party classification. The US, supported by AUSTRALIA, CANADA and the EU, stated that Armenia should not have access to the Multilateral Fund until it ratifies the London Amendment. Delegates agreed to forward a draft decision to the high-level segment.

EXECUTIVE COMMITTEE/IMPLEMENTATION COMMITTEE INTERACTION: The US introduced its draft decision (UNEP/OzL.Pro.14/CRP.1) on interaction between the Executive Committee and the Implementation Committee, noting problems faced by the Executive Committee when assessing projects for funding where non-compliance by Article 5 Parties is implied. He said the Executive Committees inclination is to refer any decision to the Implementation Committee or MOP, but stressed that this delays the Partys return to compliance. He highlighted the draft decisions aims to: minimize the duration of non-compliance; clarify that Executive Committee project approval would not condone non-compliance or prejudice decisions of the Implementation Committee; and confirm that the Implementation Committee cannot direct the Executive Committee without the MOPs approval.

ARGENTINA, CHINA, IRAN, MAURITIUS, ST LUCIA and others highlighted the respective roles of the two Committees in helping Parties achieve compliance and called for dialogue between them. The DOMINICAN REPUBLIC expressed concern over criteria for determining whether a country is in compliance. BOSNIA AND HERZEGOVINA, CHINA, MAURITIUS and UGANDA cited circumstances that lead countries to non-compliance, including inadequate financial support, administrative hurdles and lack of capacity building, especially in low-consuming countries. CHINA, with MAURITIUS, said countries under such circumstances should not be "abruptly" categorized as non-compliant and denied funding. Delegates agreed to continue discussion in a contact group chaired by the US.

IN THE CORRIDORS

Consensus seems to be emerging in the ozone research contact group to establish a new fund under the Vienna Convention, financed by voluntary contributions. Some participants were sceptical, however, that such a step would secure even the relatively small amount of funding that is so urgently needed to preserve the continuity of the Dobson ozone data sets.

THINGS TO LOOK FOR TODAY

Plenary will reconvene at 10:00 am. A legal drafting group will convene at 9:00 am in the German Room C-629 to consider matters referred by the Implementation Committee. The contact group on illegal trade will meet at 9:00 am in the Lebanon Room D-209. The budget group will meet in the Canada Room A-356 at 2:00 pm and the Multilateral Fund replenishment group will meet in the Ethiopia Room C-285 at a time to be decided.