Remaining Challenges

Ratification is Incomplete.
Eleven countries have not yet ratified the ozone treaties, and many more have not yet ratified the London, Copenhagen, Montreal and Beijing Amendment.

Complying with the Montreal Protocol
Some countries with economies in transition are having difficulty complying with the Montreal Protocol. This is due to the economic recession and political transition since 1989. The Russian Federation and a few other countries admitted in 1996 that they would be unable to follow the phase-out time-table for CFCs. Many have, however, managed to complete the phase-out by the year 2002. The Parties asked the GEF to provide this assistance, and it has thus far allocated over $160 million to these countries. In addition, the World Bank's Special Initiative raised $19 million from Austria, Denmark, Finland, Germany, Italy, Japan, Norway, Sweden, UK and US to close down the production of CFCs and Halons in the Russian Federation by the year 2000. The GEF has approved a further $60 million to assist these Parties with the phase-out of HCFCs and Methyl Bromide.

Illegal Trade
Although all new CFCs are now banned in industrialized countries, millions of CFC-dependent refrigerators, automobile air conditioners, and other equipment are still in service. Alternatives are available to service this equipment, but they can be more expensive. Recycled CFCs may be used to maintain existing equipment, but it is difficult to distinguish between new and recycled CFCs. In addition, while most consumption is forbidden, industrialized countries still produce some CFCs in order to meet their own essential uses and to supply developing countries, as permitted by the Protocol. In the US, CFCs are heavily taxed and the market price is high. As a result, some traders illegally sell perhaps 20,000 tonnes of new CFCs in the industrialized countries every year in the guise of recycled substances or as exports to developing countries. Smugglers are subject to imprisonment and heavy fines, and national licensing systems are being established to better track imports and exports.

Consumption of Methyl Bromide
Some countries imposed controls on this chemical because of its toxicity even before the concern about its ozone depletion potential first arose. However, since many countries have not yet ratified the 1992 Copenhagen Amendment which introduced controls on methyl bromide, there is a risk that consumption could spread to more countries and to more uses.

Concentrations of Halons Continue to Increase
Even though production ended in 1994,concentrations of Halons continue to increase. This is because Halons in existing fire-fighting equipment get emitted whenever there is a fire. This is a concern because the bromine contained in Halons is 50 times more efficient than the chlorine in CFCs in depleting ozone. An expert panel is exploring the implications of de-commissioning existing Halons systems and destroying the Halons they contain.

Meeting the Phase-out Schedules by Developing Countries
With the arrival of the freeze on CFC production and consumption for the Article 5 Parties, the grace period granted to them by the Montreal Protocol has now ended. The Article 5 Parties have entered the “compliance” period in which they will have to achieve specific reductions in the national production and consumption of CFCs.

Developing countries must implement their phase out of CFCs, Halons and carbon tetrachloride according to the schedule. Asian countries, in particular, have been increasing their consumption due to their high rates of economic growth and must now stabilize this consumption and begin reversing it. While consumption levels in the developed countries – which had been much higher on both a per-capita and a national basis – have been virtually phased out, the Montreal Protocol can only succeed if the developing countries – with 80% of world population – phase out these substances despite their growing economies. The Multilateral Fund will play an essential role in ensuring that this happens.

A large number of used CFC-based refrigerators are being exported to developing countries by countries that have phased out CFCs. These sales could make the future CFC phase out by developing countries more difficult by stimulating a large demand for CFCs to maintain this equipment.

CFCs are being replaced by HFCs, which have a large global warming potential. The Kyoto Protocol on climate change has included HFCs in the basket of six gases whose emissions are to be reduced by the industrialised countries. Are the two global protocols sending confusing signals? Does the Kyoto Protocol hinder the implementation of the Montreal Protocol? The Parties to the Montreal Protocol as well as the Parties to the Climate Change Convention now have the reports of their scientific and technical panels on how to minimise the emissions of HFCs. Implementation of the panels’ recommendations by governments is important.