Decision XXXI/1: Terms of reference for the study on the 2021–2023 replenishment of the Multilateral Fund for the Implementation of the Montreal Protocol

Recalling the parties’ decisions on previous terms of reference for studies on the replenishment of the Multilateral Fund for the Implementation of the Montreal Protocol,

Recalling also the parties’ decisions on previous replenishments of the Multilateral Fund,

1. To request the Technology and Economic Assessment Panel to prepare a report for submission to the Thirty-Second Meeting of the Parties, and to submit it through the Open-ended Working Group at its forty-second meeting, to enable the Thirty-Second Meeting of the Parties to adopt a decision on the appropriate level of the 2021–2023 replenishment of the Multilateral Fund;
2. That, in preparing the report referred to in paragraph 1 of the present decision, the Panel should take into account, among other things:
   1. All control measures and relevant decisions agreed upon by the parties to the Montreal Protocol and the Executive Committee of the Multilateral Fund, including decision XXVIII/2, and the decisions of the Thirty-First Meeting of the Parties and the Executive Committee at its meetings, up to and including its eighty-fifth meeting, insofar as those decisions will necessitate expenditure by the Multilateral Fund during the period 2021–2023;
   2. The need to consider the special needs of low‑volume-consuming and very-low-volume-consuming countries;
   3. The need to allocate resources to enable all parties operating under paragraph 1 of Article 5 of the Montreal Protocol (Article 5 parties) to achieve and/or maintain compliance with Articles 2A–2J of the Protocol, taking into account decision XIX/6 of the Meeting of the Parties, and the reductions and extended commitments made by Article 5 parties under approved hydrochlorofluorocarbon (HCFC) phase-out management plans, and decision XXVIII/2, and noting that the Panel in its supplementary report shall provide any information or clarification as requested by any party relating to the allocation of resources;
   4. Decisions, rules and guidelines agreed by the Executive Committee at all its meetings, up to and including its eighty-fifth meeting, in determining eligibility for the funding of investment projects and non‑investment projects;
   5. The need to allocate resources for Article 5 parties to comply with the Kigali Amendment to the Montreal Protocol, including the preparation and, if needed, the implementation of phase-down plans for hydrofluorocarbons (HFCs) that could include early activities in the servicing/end users sector in order to comply with the Kigali Amendment by addressing the high growth rate in HFC consumption;
   6. The need to allocate resources to the low-volume-consuming countries for the introduction of zero-global-warming-potential or low-global-warming-potential alternatives to HFCs and to maintain energy efficiency in the servicing/end users sector, in line with any relevant decisions of the Executive Committee;
   7. Three scenarios representing different potential levels of ratification of the Kigali Amendment when estimating the funding requirement for the phase-down of HFCs;
   8. The cost of supporting a limited number of stand-alone projects transitioning out of HFCs, in accordance with paragraph 4 of decision XXX/5;
3. That the Panel should provide indicative figures of the resources within the estimated funding required for phasing out HCFCs that could be associated with enabling Article 5 parties to directly transition from HCFCs to the use of low-global-warming-potential or zero-global-warming-potential alternatives, taking into account global warming potential, energy use, safety and other relevant factors. The indicative figures should be provided for a range of typical scenarios, including a low-volume-consuming country, a small manufacturing country and a medium-sized manufacturing country;
4. That, in preparing the report, the Panel should consult widely, including all relevant persons and institutions and other relevant sources of information deemed useful;
5. That the Panel should strive to complete the report in good time to enable it to be distributed to all parties two months before the forty-second meeting of the Open‑ended Working Group;
6. That the Panel should provide indicative figures for the periods 2024–2026 and 2027–2029 to support a stable and sufficient level of funding, on the understanding that those figures will be updated in subsequent replenishment studies.