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Decision XXXV/27: Financial reports and budgets for the Montreal Protocol on Substances that Deplete the Ozone Layer

Document type: Decision
Reference number: XXXV/27
Date: Oct 27, 2023
Source: UNEP, InforMEA

Status: Active
Subject: Waste & hazardous substances, Air & atmosphere
Treaty: Montreal Protocol on Substances that Deplete the Ozone Layer (Sep 16, 1987)
Meeting: Thirty-Fifth Meeting of the Parties
Website: ozone.unep.org

Abstract

Recalling decision XXXIV/24 on financial reports and budgets for the Montreal Protocol on Substances that Deplete the Ozone Layer,

Taking note of the financial report for the Trust Fund for the Montreal Protocol on Substances that Deplete the Ozone Layer for the fiscal year 2022,[1]

Recognizing the voluntary contributions of parties as an essential complement for the effective implementation of the Montreal Protocol,

Welcoming the continued efficient management by the Secretariat of the finances of the Trust Fund for the Montreal Protocol,

Recognizing that maintaining the level of contributions significantly lower than the expenditures will result in a rapid reduction in the cash balance, and that this will need to be taken into account when considering future levels of contributions,

To request the Executive Secretary to prepare budgets and work programmes for the years 2025 and 2026, based on the projected needs, for two budget scenarios:
To request the Executive Secretary to indicate in future financial reports of the Trust Fund the amounts of cash on hand and the status of contributions to the Trust Fund;
To request the Executive Secretary to ensure the full utilization of the programme support resources available to it in 2024 and in later years and, where possible, to offset programme support resources against the administrative components of the approved budget;
To request the Executive Secretary to continue to prepare fact sheets for the presentation of future budgets;
To request the Executive Secretary to continue to provide regular information on earmarked contributions and to include that information, where relevant, in the budget proposals of the Trust Fund to enhance transparency with regard to the actual income and expenses of the Trust Fund;
To request the Executive Secretary to enter into discussions with any party whose contributions have been outstanding for two or more years with a view to finding a way forward, and to report to the Thirty-Sixth Meeting of the Parties on the outcome of those discussions to enable further consideration by the parties of how to address the matter;
To express its appreciation regarding the fact that a number of parties have paid their contributions for 2023 and prior years, and to urge those parties that have not done so to pay their outstanding contributions promptly and in full and all parties to pay their future contributions promptly and in full;
To encourage parties and other stakeholders to contribute financially and by other means to assist the members of the three assessment panels and their subsidiary bodies with a view to ensuring their continued participation in assessment activities under the Montreal Protocol;
To reaffirm that a working capital reserve shall be maintained at a level of 15 per cent of the annual budget, to be used to meet the final expenditures under the Trust Fund, noting that the working capital reserve shall be set aside from the existing cash balance;
To authorize the Executive Secretary to draw down from the cash balance the funds required to cover the shortfall between the level of contributions agreed upon in paragraph 3 above and the approved budget for 2024 as set out in paragraph 1 above;
To approve the contributions to be paid by the parties in the amount of 3,743,099 dollars for 2024 and to take note of the contributions for 2025 as set out in table B of the annex to the present decision;
To authorize the Executive Secretary, on an exceptional basis, to draw down from the available cash balance for 2023 in an amount of up to 491,550 dollars for specific activities listed in table A of the annex to the present decision, which includes an indicative amount for a workshop in 2024, as called for in paragraph 4 of decision XXXV/11 provided that the cash balance is not reduced to below the working capital reserve;
To approve the budget of 5,852,835 United States dollars for 2024 and to take note of the indicative budget for 2025, as set out in table A of the annex to the present decision, to be considered further by the Thirty-Sixth Meeting of the Parties to the Montreal Protocol;
1. A zero-nominal-growth scenario based on the 2024 approved budget;
2. A scenario based on recommended adjustments to the zero-nominal-growth scenario, indicating the added costs or savings related thereto;
To request the Executive Secretary to prepare indicative options for party contributions for the year 2025, for each scenario identified in paragraph 13 above for:
1. Contributions assuming the use of 20 per cent of the presented scenario from the cash balance as of 1 January 2024;
2. Contributions assuming the use of 10 per cent of the presented scenario from the cash balance as of 1 January 2024;
3. Contributions equal to the budgeted expenses for 2025;
4. Contributions equal to the level of contributions in 2024 using the remaining amount from the cash balance;
To stress the need to continue to ensure that the budget proposals are realistic and represent the agreed priorities of all parties to help to ensure a sustainable and stable fund and cash balance, including contributions.

Annex to decision XXXV/27

Table A
Approved 2024 and noted 2025 budgets

(United States dollars)

Budget line	Cost category	2024	2025
	Personnel costs
1100	Employee salaries, allowances and benefits	1 759 500	1 794 700
1200	Consultants	85 000	85 000
	Meeting costs
1321	Conference services costs: Open-ended Working Group meetings	798 000	650 000
1322	Conference services costs: preparatory meetings and meetings of the parties	663 000	667 000
1323	Communication costs of Article 5[2] assessment panel members and organizational costs of panel meetings	55 000	55 000
1324	Conference services costs: Bureau meetings	25 000	25 000
1325	Conference services costs: Implementation Committee meetings	125 000	125 000
5401	Hospitality	25 000	25 000
	Subtotal: Meeting costs	1 691 000	1 547 000
	Travel of Article 5 parties and experts
3301	Travel of Article 5 parties: assessment panel meetings	350 000	350 000
3302	Travel of Article 5 parties: preparatory meetings and meetings of the parties	400 000	400 000
3303	Travel of Article 5 parties: Open-ended Working Group meetings	365 000	365 000
3304	Travel of Article 5 parties: Bureau meetings	15 000	15 000
3305	Travel of Article 5 parties: Implementation Committee meetings	65 000	65 000
	Subtotal: Travel of Article 5 parties and experts	1 195 000	1 195 000
1600	Travel on official business
1601	Staff travel on official business	195 000	195 000
1602	Conference services staff travel on official business	15 000	15 000
	Subtotal: Travel on official business	210 000	210 000
	Other operating costs
4100	Expendable equipment	15 000	15 000
4200	Non-expendable equipment	15 000	15 000
4300	Rental of premises	34 000	34 000
5100	Operation and maintenance of equipment	22 000	22 000
5200	Reporting costs	75 000	75 000
5300	Sundry	15 000	20 000
	Subtotal: Other operating costs	176 000	181 000
5201	Public awareness and communication	63 000	57 800
	Total direct costs	5 179 500	5 070 500
	Programme support costs	673 335	659 165
	Total: Core budget	5 852 835	5 729 665
	Additional activities funded from cash balance
5404	Communication campaign	160 000	100 000
5408	Digital tools: maintenance and enhancements	40 000	40 000
3308	Contingency – Travel of Article 5 parties: preparatory meetings and meetings of the parties^a	50 000	-
3309	Contingency – Travel of Article 5 parties: Open-ended Working Group meetings^a	45 000	-
3310	Conference services costs and travel of Article 5 parties – Life-Cycle Refrigerant Management workshop	140 000
	Sub-total: Additional activities funded from cash balance	435 000	140 000
	Programme support costs	56 550	18 200
	Total: Additional activities	491 550	158 200
	Grand total	6 344 385	5 887 865

^a In the event that travel costs for Article 5 parties are not covered by the core budget, the contingency lines will bridge any potential gap between the budget and the expenditure for 2024. Recognizing that this is a one-off solution, the Executive Secretary is requested to ensure that the estimated costs of participation of Article 5 parties are reflected in the proposed core budget scenarios for 2025.

Appendix to table A

Explanatory notes for the 2024 budget of the Trust Fund for the Montreal Protocol on Substances that Deplete the Ozone Layer

Cost category	Budget line	Notes
Employee salaries, allowances and benefits	1100	The estimates under this category have been increased by 2 per cent over the approved 2023 budget to allow for inflation. The costs of a United Nations Volunteer to support the work of the Secretariat are included in this category. The category also includes other costs related to staff (e.g., medical services, stress counselling, host country services and security).
Consultants	1200	The estimates for consultants remains at the level of the 2023 approved amount.
Meeting costs	1300	This category includes venue costs, editing and translation of meeting documents, interpretation during the meeting and report-writing. Conference servicing staff time and travel costs are also included in this category.
	1321	The estimates for the forty-sixth meeting of the Open-ended Working Group are based on the costs of the meeting held at the International Civil Aviation Organization in Montreal in 2022.
	1322	The estimates for the Thirty-Sixth Meeting of the Parties are based on costs of the Thirty-Fifth Meeting of the Parties held in Nairobi, since the hosting arrangements for the Thirty‑Sixth Meeting of the Parties were not known at the time of preparing the budget. It was therefore assumed, for purposes of the budget, that the meeting would be held at the seat of the Secretariat in Nairobi. In accordance with decision XXXV/26, the Thirty-Sixth Meeting of the Parties will be held in Bangkok. The actual costs may, therefore, differ from these estimates. 2024 being the year of back-to-back meetings of the Conference of the Parties and the Meeting of the Parties, the approved budget for the meeting of the Conference of the Parties under the Vienna Convention Trust Fund will complement the budget for the Thirty-Sixth Meeting of the Parties, and savings may be allocated for other activities in 2024.
	1323	Communications and meeting costs for the assessment panels, associated technical options committees and subsidiary bodies are maintained at the level of the 2023 approved amount. The budget is used for the organization of meetings and for an allowance for the co-chairs from Article 5 parties^a to cover communication costs related to the work of assessment panels.
	1324	The budget for the meeting of the Bureau of the Thirty-Fifth Meeting of the Parties is kept at the same level as the 2023 approved amount owing to uncertainty regarding the translation and interpretation requirements.
	1325	The proposed budget for Implementation Committee meetings in 2024 includes the cost of two meetings, one held back to back with the forty-sixth meeting of the Open-ended Working Group and the other held back to back with the Thirty-Sixth Meeting of the Parties. The budget amount is kept at the same level as the 2023 approved amount.
	5401	The hospitality cost covers receptions at the forty-sixth meeting of the Open-ended Working Group and the Thirty‑Sixth Meeting of the Parties and has been maintained at the level of the 2023 approved amount.
Travel of Article 5 parties and experts	3300	The participation of representatives of Article 5 parties and countries with economies in transition in various Montreal Protocol meetings is budgeted at $5,000 per representative per meeting calculated on the basis of economy class fare using the most direct and economical route and United Nations daily subsistence allowances.
	3301	The cost of travel by experts to meetings of the assessment panels has been maintained at the level of the 2023 approved amount.
	3302	The cost of travel by representatives to the Thirty-Sixth Meeting of the Parties is kept at the level of the 2023 approved amount.
	3303	The cost of travel by representatives to the forty-sixth meeting of the Open-Ended Working Group is kept at the level of the 2023 approved amount.
	3304	Includes the cost of travel of members to the meeting of the Bureau of the Thirty-Fifth Meeting of the Parties and to the Thirty-Sixth Meeting of the Parties, kept at the level of the 2023 approved amount.
	3305	Includes the cost of travel of Implementation Committee members from Article 5 parties to participate in its seventy‑second and seventy-third meetings, to be held back to back with the forty-sixth meeting of the Open-ended Working Group and the Thirty-Sixth Meeting of the Parties, respectively. The budget has been kept at the level of the 2023 approved amount.
Travel on official business	1600	The budget includes travel by Secretariat staff to organize and/or participate in meetings of the Montreal Protocol and other relevant meetings, such as the meetings of the ozone officers under the regional networks of the OzonAction programme, to provide substantive support to meetings of importance to the ongoing work of the Secretariat to implement the decisions and requests of the parties.
	1601	The travel budget for Secretariat staff and conference services staff has been maintained at the level of the 2023 approved amount.
	1602	The travel budget for conference services staff is used for undertaking exploratory missions.
Other operating costs	4100 – 5300	The category includes expendable/non-expendable equipment, the rental of office premises, the operation and maintenance of equipment, reporting costs, sundry costs, public awareness campaigns and communication.
	4100	The budget includes the cost of software licences, stationery, office supplies and consumables. The cost has been maintained at the level of the 2023 approved amount.
	4200	This budget line provides for the cost of computers, peripherals and furniture. The cost has been maintained at the level of the 2023 approved amount.
	4300	The rental cost for the Secretariat’s offices in Nairobi has been increased by $2,000 from the 2023 approved amount to allow for any possible increases.
	5100	For the operation and maintenance of equipment, the budget includes the service-level agreements for printers and photocopying machines, information technology support provided by the United Nations Office at Nairobi, and insurance of equipment. The cost has been increased by $2,000 from the 2023 approved amount to allow for any possible increase.
	5200	The reporting costs include reporting and coverage at the forty-sixth meeting of the Open-ended Working Group and the Thirty-Sixth Meeting of the Parties, assessment panel reports, ad hoc translation, editing of documents not related to meetings, and publications. The cost is at the same level as for 2023.
	5300	The sundry budget includes telecommunication costs, freight costs and staff training costs. The budget has been reduced by $5,000 from the level of the 2023 approved amount.
Public awareness and communication	5201	Includes website and web tools’ maintenance and hosting, awareness-raising campaigns, visual materials, branding of meetings and the World Ozone Day celebration. The World Ozone Day budget has been increased by $5,000 to allow more Article 5 parties to benefit from the support provided by the Secretariat for the day’s celebrations.
Additional activities funded from the cash balance	5404	The budget will be used for awareness-raising campaigns to complement the budget requested under the category “Public awareness and communication”.
	5408	Enhancement and maintenance of existing digital tools.
	3308	Contingency for travel of Article 5 parties to the Meeting of the Parties.
	3309	Contingency for travel of Article 5 parties to the Open-ended Working Group meeting.
	3310	Conference services costs and travel of Article 5 parties – Life-Cycle Refrigerant Management workshop

^a From parties operating under paragraph 1 of Article 5 of the Montreal Protocol.

Table B
Parties’ contributions to the Trust Fund for the Montreal Protocol on Substances that Deplete the Ozone Layer

(United States dollars)

	Name of party	Adjusted United Nations scale with 22 per cent maximum assessment rate considered^a	2024 contributions by parties	2025 contributions by parties
1	Afghanistan	–	–	–
2	Albania	–	–	–
3	Algeria	0.109	4 080	6 245
4	Andorra	–	–	–
5	Angola	–	–	–
6	Antigua and Barbuda	–	–	–
7	Argentina	0.718	26 876	41 139
8	Armenia	–	–	–
9	Australia	2.107	78 867	120 724
10	Austria	0.678	25 378	38 847
11	Azerbaijan	–	–	–
12	Bahamas	–	–	–
13	Bahrain	–	–	–
14	Bangladesh	–	–	–
15	Barbados	–	–	–
16	Belarus	–	–	–
17	Belgium	0.827	30 955	47 384
18	Belize	–	–	–
19	Benin	–	–	–
20	Bhutan	–	–	–
21	Bolivia (Plurinational State of)	–	–	–
22	Bosnia and Herzegovina	–	–	–
23	Botswana	–	–	–
24	Brazil	2.010	75 236	115 166
25	Brunei Darussalam	–	–	–
26	Bulgaria	–	–	–
27	Burkina Faso	–	–	–
28	Burundi	–	–	–
29	Cabo Verde	–	–	–
30	Cambodia	–	–	–
31	Cameroon	–	–	–
32	Canada	2.624	98 219	150 346
33	Central African Republic	_	_	_
34	Chad	_	_	_
35	Chile	0.419	15 684	24 007
36	China	15.228	569 999	872 513
37	Colombia	0.246	9 208	14 095
38	Comoros	–	–	–
39	Congo	–	–	–
40	Cook Islands	–	–	–
41	Costa Rica	–	–	–
42	Côte d’Ivoire	–	–	–
43	Croatia	–	–	–
44	Cuba	–	–	–
45	Cyprus	–	–	–
46	Czechia	0.339	12 689	19 424
47	Democratic People's Republic of Korea	–	–	–
48	Democratic Republic of the Congo	–	–	–
49	Denmark	0.552	20 662	31 628
50	Djibouti	–	–	–
51	Dominica	–	–	–
52	Dominican Republic	–	–	–
53	Ecuador	–	–	–
54	Egypt	0.139	5 203	7 964
55	El Salvador	–	–	–
56	Equatorial Guinea	–	–	–
57	Eritrea	–	–	–
58	Estonia	–	–	–
59	Eswatini	–	–	–
60	Ethiopia	–	–	–
61	European Union	2.496	93 428	143 013
62	Fiji	–	–	–
63	Finland	0.416	15 571	23 835
64	France	4.311	161 365	247 006
65	Gabon	–	–	–
66	Gambia	–	–	–
67	Georgia	–	–	–
68	Germany	6.101	228 367	349 567
69	Ghana	–	–	–
70	Greece	0.324	12 128	18 564
71	Grenada	–	–	–
72	Guatemala	–	–	–
73	Guinea	–	–	–
74	Guinea-Bissau	–	–	–
75	Guyana	–	–	–
76	Haiti	–	–	–
77	Holy See	–	–	–
78	Honduras	–	–	–
79	Hungary	0.228	8 534	13 064
80	Iceland	–	–	–
81	India	1.042	39 003	59 703
82	Indonesia	0.548	20 512	31 399
83	Iran (Islamic Republic of)	0.370	13 850	21 200
84	Iraq	0.128	4 791	7 334
85	Ireland	0.438	16 395	25 096
86	Israel	0.560	20 961	32 086
87	Italy	3.184	119 180	182 433
88	Jamaica	–	–	–
89	Japan	8.019	300 159	459 462
90	Jordan	–	–	–
91	Kazakhstan	0.133	4 978	7 621
92	Kenya	–	–	–
93	Kiribati	–	–	–
94	Kuwait	0.234	8 759	13 407
95	Kyrgyzstan	–	–	–
96	Lao People’s Democratic Republic	–	–	–
97	Latvia	–	–	–
98	Lebanon	–	–	–
99	Lesotho	–	–	–
100	Liberia	–	–	–
101	Libya	–	–	–
102	Liechtenstein	–	–	–
103	Lithuania	–	–	–
104	Luxembourg	–	–	–
105	Madagascar	–	–	–
106	Malawi	–	–	–
107	Malaysia	0.347	12 989	19 882
108	Maldives	–	–	–
109	Mali	–	–	–
110	Malta	–	–	–
111	Marshall Islands	–	–	–
112	Mauritania	–	–	–
113	Mauritius	–	–	–
114	Mexico	1.219	45 628	69 845
115	Micronesia (Federated States of)	–	–	–
116	Monaco	–	–	–
117	Mongolia	–	–	–
118	Montenegro	–	–	–
119	Morocco	–	–	–
120	Mozambique	–	–	–
121	Myanmar	–	–	–
122	Namibia	–	–	–
123	Nauru	–	–	–
124	Nepal	–	–	–
125	Netherlands (Kingdom of the)	1.375	51 468	78 783
126	New Zealand	0.308	11 529	17 647
127	Nicaragua	–	–	–
128	Niger	–	–	–
129	Nigeria	0.182	6 812	10 428
130	Niue	–	–	–
131	North Macedonia	–	–	–
132	Norway	0.678	25 378	38 847
133	Oman	0.111	4 155	6 360
134	Pakistan	0.114	4 267	6 532
135	Palau	–	–	–
136	Panama	–	–	–
137	Papua New Guinea	–	–	–
138	Paraguay	–	–	–
139	Peru	0.163	6 101	9 339
140	Philippines	0.212	7 935	12 147
141	Poland	0.836	31 292	47 900
142	Portugal	0.352	13 176	20 168
143	Qatar	0.269	10 069	15 413
144	Republic of Korea	2.570	96 198	147 252
145	Republic of Moldova	–	–	–
146	Romania	0.311	11 641	17 819
147	Russian Federation	1.863	69 734	106 744
148	Rwanda	–	–	–
149	Saint Kitts and Nevis	–	–	–
150	Saint Lucia	–	–	–
151	Saint Vincent and the Grenadines	–	–	–
152	Samoa	–	–	–
153	San Marino	–	–	–
154	Sao Tome and Principe	–	–	–
155	Saudi Arabia	1.182	44 243	67 725
156	Senegal	–	–	–
157	Serbia	–	–	–
158	Seychelles	–	–	–
159	Sierra Leone	–	–	–
160	Singapore	0.503	18 828	28 820
161	Slovakia	0.155	5 802	8 881
162	Slovenia	–	–	–
163	Solomon Islands	–	–	–
164	Somalia	–	–	–
165	South Africa	0.244	9 133	13 980
166	South Sudan	–	–	–
167	Spain	2.130	79 728	122 042
168	Sri Lanka	–	–	–
169	State of Palestine	–	–	–
170	Sudan	–	–	–
171	Suriname	–	–	–
172	Sweden	0.870	32 565	49 848
173	Switzerland	1.132	42 372	64 860
174	Syrian Arab Republic	–	–	–
175	Tajikistan	–	–	–
176	Thailand	0.367	13 737	21 028
177	Timor-Leste	–	–	–
178	Togo	–	–	–
179	Tonga	–	–	–
180	Trinidad and Tobago	–	–	–
181	Tunisia	–	–	–
182	Türkiye	0.844	31 592	48 358
183	Turkmenistan	–	–	–
184	Tuvalu	–	–	–
185	Uganda	–	–	–
186	Ukraine	–	–	–
187	United Arab Emirates	0.634	23 731	36 326
188	United Kingdom of Great Britain and Northern Ireland	4.368	163 499	250 272
189	United Republic of Tanzania	–	–	–
190	United States of America	21.958	821 910	1 258 120
191	Uruguay	–	–	–
192	Uzbekistan	–	–	–
193	Vanuatu	–	–	–
194	Venezuela (Bolivarian Republic of)	0.175	6 550	10 027
195	Viet Nam	–	–	–
196	Yemen	–	–	–
197	Zambia	–	–	–
198	Zimbabwe	–	–	–
	Total	100.000	3 743 099	5 729 665

^a General Assembly resolution 76/238 on the scale of assessments for the apportionment of the expenses of the United Nations stipulates a maximum assessment rate of 22 per cent for the period 2022–2024.

[1] UNEP/OzL.Pro.35/5.

[2] From parties operating under paragraph 1 of Article 5 of the Montreal Protocol.