Decision XXXVII/6: Terms of reference for the study on the 2027–2029 replenishment of the Multilateral Fund for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer

The Thirty-Seventh Meeting of the Parties,

Recalling the decisions of the Meetings of the Parties on previous terms of reference for studies on the replenishment of the Multilateral Fund for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer,

Recalling also the decisions of the Meetings of the Parties on previous replenishments of the Multilateral Fund,

Decides:

1. To request the Technology and Economic Assessment Panel to prepare a report for submission to the Thirty-Eighth Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer, and to submit it through the Open-ended Working Group of the Parties to the Montreal Protocol at its forty-eighth meeting, to enable the Thirty-Eighth Meeting of the Parties to adopt a decision on the appropriate level of the 2027–2029 replenishment of the Multilateral Fund for the Implementation of the Montreal Protocol;
2. That, in preparing the report referred to in paragraph 1 above, the Panel should take into account, among other things:
   1. All control measures and decisions agreed on by the Meetings of the Parties to the Montreal Protocol and the Executive Committee of the Multilateral Fund, including those relevant to decision XXVIII/2, and the decisions of the Meetings of the Parties up to and including the Thirty-Seventh Meeting of the Parties and of the Executive Committee up to and including its ninety-eighth meeting, insofar as those decisions will necessitate expenditure by the Multilateral Fund during the period 2027–2029;
   2. The special needs of low-volume-consuming and very-low-volume-consuming countries, taking into account relevant decisions of the Executive Committee pertaining to those countries;
   3. The need to allocate resources to enable all parties operating under paragraph 1 of Article 5 of the Montreal Protocol to comply with Articles 2A to 2J of the Protocol, and the reductions and extended commitments made by parties operating under paragraph 1 of Article 5 under approved hydrochlorofluorocarbon phase-out management plans and Kigali implementation plans;
   4. The integration of digital technologies and tools within the servicing sector;
   5. A scenario to allocate resources for a funding modality to support a limited number of pilot projects to enhance regional atmospheric monitoring of substances controlled by the Montreal Protocol, taking into account decision XXXVI/1 and any other decisions of the Meetings of the Parties and the Executive Committee;
3. That, in estimating funding requirements associated with the reduction targets, the Panel will use a clearly explained compliance-based methodology that is informed by, but independent of, the business plan of the Multilateral Fund, and that applies a range of cost-effectiveness figures for the manufacturing sectors based on historical experience rather than only on the cost-effectiveness thresholds approved by the Executive Committee;
4. That, separately from the main estimated funding requirement, the Panel should prepare scenarios for varying numbers of Article 5 parties that have not yet submitted Kigali implementation plans for phasing down hydrofluorocarbons in advance of the Montreal Protocol targets on a voluntary basis;
5. That, in preparing the report, the Panel should consult widely, including all relevant persons and institutions and other relevant sources of information deemed useful;
6. 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-eighth meeting of the Open-ended Working Group;
7. That the Panel should provide indicative figures for the periods 2030–2032 and
   2033–2035 to support a stable and sufficient level of funding, on the understanding that those figures will be updated in subsequent replenishment studies;
8. That the Panel should share the details of calculations in the form of an appendix to the report to enable parties to fully understand the Panel’s analysis.