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The World Bank and The Montreal Protocol
Reducing Health Risks by Restoring the Ozone Layer
Results at a glance. Certain human activities
cause the emission of ozone depleting substances,
a set of chemicals that leads to the reduction of
atmospheric ozone levels. Ozone depletion results
in increasing ultraviolet (UV) radiation at the Earth’s
surface, which ultimately leads to higher incidence
of skin cancer in humans. The Montreal Protocol
establishes legally binding controls on production
and consumption of ozone depleting gases. Without
a Protocol, levels of ozone depleting substances in
the atmosphere would have increased tenfold by
2050, which could have led to up to 20 million more
cases of skin cancer relative to 1980. The Montreal
Protocol has been successful in reversing the
increase of ozone depleting gases in the atmosphere. In particular, the World Bank’s Montreal
Protocol program has resulted in the elimination of
nearly 70% of the global targets of ozone depleting
substances, with only 40% of the international pool
of resources available. The Bank has primarily
implemented technological conversion projects,
through which technologies based on ozone depleting gases are phased-out and replaced by others
based on ozone-friendly substances. The main
sectors targeted have been refrigeration and mobile
air conditioning, foams, aerosols, solvents, and fire
control.
short-wavelength ultraviolet radiation produced by the
sun. Excessive ultraviolet-B radiation is well known to
cause human health problems such as skin cancers,
eye cataracts, and weakening of the immune system
and it also results in damage to plant and animal
populations. The ozone layer absorbs almost all most
ultraviolet-B radiation, thus shielding the earth’s
surface.
Why is the Ozone layer important?
Ozone-depleting substances. ODS include:
v chlorofluorocarbons (CFCs), which are used in
refrigerators and air conditioners, aerosol sprays,
solvents, foams, and other applications.
v hydrochlorofluorocarbons (HCFCs) were initially
developed as CFC substitutes, but they too have
some ozone-depletion potential.
v carbon tetrachloride and methyl chloroform, which
are widely used as solvents in engineering and
manufacturing operations.
v halons, which are bromine-containing chemicals
used primarily for fire-fighting.
v methyl bromide, which is used mainly as an
agricultural pesticide and fumigant.
v certain other chemicals used as solvents, coatings, adhesives, foams, process agents, and
sterilants in a variety of sectors.
Earth’s atmosphere. The atmosphere shields the
earth’s surface from harmful radiation emanating from
the sun or other sources in space. Ozone, a form of
oxygen with three atoms instead of the usual two, is
a rare but critical component of the stratosphere.
The ozone layer. Approximately 90% of all ozone
in the atmosphere is found in the stratosphere,
beginning about 18 kilometers (11 miles) above Earth
and extending upwards to about 50 kilometers (30
miles): the “ozone layer.”
Ultraviolet radiation. The stratospheric ozone layer
is important because it protects life on Earth from
How is the Ozone Layer at Risk?
Ozone destruction. Certain man-made chemicals
containing chlorine or bromine are capable of destroying stratospheric ozone by means of chemical reactions that break down ozone molecules. When the
ozone layer becomes depleted, it loses its protective
capability. The chemicals that destroy ozone are
called “ozone-depleting substances” (ODS). These
substances can have atmospheric lifetimes of up to 65
years. Some chemical compounds, such as those
containing bromine, are more highly reactive and
destroy ozone faster than those containing chlorine.
Thus they have greater “ozone-depletion potential”
(ODP) relative to a fixed reference criterion. The
relative ozone-depletion potential of a particular
compound can be expressed quantitatively as “ODP
tons.”
T
Ozone loss. Long-term scientific measurements
beginning in 1957 have shown that the ozone layer
over the middle latitudes (30 – 60 degrees) in both
hemispheres has been depleted at an average rate of
4 – 5% per decade over the period from 1979 to 1994.
Furthermore, in the early 1980s, an “ozone hole”
resulting from a decline in ozone cover of up to 60%
began to occur seasonally over Antarctica.
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have more financial and technological resources to
adopt alternatives. Developing countries were granted
a grace period of 10 years before compliance with
Protocol phase-out schedules was required. In the
interim, by 1999 they had to “freeze” both production
and consumption of CFCs at average 1995 - 1997
levels. With the onset of compliance, developing
countries need to reduce CFCs, halons, and carbon
tetrachloride by 50% by 2005, by 85% by 2007, and
phase them out completely by 2010.
a)
Computer simulation of the ozone hole over Antarctica in
b)
September 2000 (Photo by NASA)
Protecting the Ozone Layer
The Montreal Protocol. International consensus and
concerted global action on protection of the ozone
layer have resulted in landmark international agreements. The Montreal Protocol on Substances that
Deplete the Ozone Layer was adopted in September
1987 and came into force in 1990. It is the legal
basis of global efforts to protect the ozone layer by
controlling production, consumption, and use of ODS.
Five amendments have been added to revise phaseout schedules, introduce other kinds of control
measures, and add new controlled ODS to the list of
96 chemicals now covered by the Protocol. Parties to
the Protocol have agreed to reduce and then eliminate
the use of these ODS according to specific schedules.
Ratification. One hundred and eighty countries have
ratified the Montreal Protocol. Approximately twothirds of signatories are developing countries described in Article 5 of the Protocol, as well as countries with economies in transition (CEITs), while the
remainder are developed countries.
Phase-out schedules. Under the Protocol, developed
countries had the most stringent phase-out schedules
due to the fact that they are responsible for the
majority of total emissions over time, and that they
a) Production and b) Consumption of CFC as reported
to Ozone Secretariat (UNEP)
Funding the phase-out. The Multilateral Fund,
created under the Protocol in 1990, provides technical
and financial assistance exclusively to developing
countries that would not otherwise have the technical
and financial means necessary to phase out ODS.
Parties to the Montreal Protocol stipulated the
Multilateral Fund as a financial mechanism to pay
agreed incremental costs to help Article 5 signatories
meet their Protocol obligations. Contributions come
mainly from developed countries. As of 2002, the
Fund approved nearly US$1.5 billion in funds to phase
out consumption of 221,000 ODP tons through
projects in 131 countries.
Implementing the phase-out. Four organizations
serve as implementing agencies for the Multilateral
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Fund: the United Nations Development Program
(UNDP), the United Nations Environment Program
(UNEP), the United Nations Industrial Development
Organization (UNIDO), and the World Bank.
World Bank Montreal Protocol Program
Importance of developing countries. Phasing out
ODS in developing countries is crucial to the success
of the Montreal Protocol. In 1986, before the
Montreal Protocol, industrialized countries accounted
for about 82% of the 1.1 million ODP tons of CFCs
consumed globally. However, as industrialized
countries phased out ODS, developing countries
continued production during their “grace period.” By
1999, the time the Protocol stipulated for developing
countries to freeze ODS levels, developing countries
accounted for 84% of the 150,000 ODP tons of CFCs
consumed globally.
Program’s approach. The Bank’s Montreal Protocol
Operations Unit uses a flexible, country-driven
partnership approach to effectively respond to the
needs and requests of each country. The program
relies entirely on national execution of phase-out
programs. The Bank helps client countries set up
institutional frameworks for country programs to
support project implementation by strengthening local
institutions. Operational policies, guidelines and
investment projects are developed together, so that
innovative approaches can evolve. Information and
technology transfer is facilitated to ensure that
expertise is quickly available to partner countries.
Where we started. World Bank Montreal Protocol
partners were mainly chosen from the largest ODS
producers and consumers of the developing world, to
work to maximize the phase-out impact of the
program. The focus of investment projects was
primarily determined by the availability of large, easily
identifiable enterprises with high ODS consumption,
further increasing project cost-effectiveness in terms
of Multilateral Fund resources. Three developing
countries alone, Brazil, China, and the Republic of
Korea, accounted for more than 50% of developing
country CFC consumption in 1999, the year of the
freeze. The two largest - China and Brazil – are
World Bank client countries. The Bank’s Montreal
Protocol program has also worked actively with five of
the other seven developing countries that accounted
for a further 25% of CFC consumption in 1999 –
Argentina, Mexico, Thailand, India, and Indonesia.
ODP tons to be phased-out under the Multilateral Fund and
the World Bank’s obligations and achievements as of 1999
Where we are now. The Bank has played a major
role in assisting developing countries to meet their
obligations as Parties to the Montreal Protocol. The
Bank’s Montreal Protocol program has been active for
11 years, during which it has facilitated phaseout of
over 122,100 ODP tons at a cost of roughly US$ 600
million. Over 372 projects have reached completion
as of 2003. This represents nearly 70% of the total
amount to be phased out under the Multilateral Fund
– using only 40% of the resources available for
investment projects. The Bank has partnered with 20
countries for investment projects, utilizing about 92%
of the total financing it has received from the Multilateral Fund.
Where we are headed. The major remaining challenge for the program is to help countries complete
their phase-out schedules and thus to eliminate their
use of ODS. Remaining ODS use in many countries
is concentrated in small and medium-size enterprises, in the end-user sector and in other sectors
that have not been addressed so far due to costs. In
view of the changing nature of phase-out programs the
Bank has launched four major initiatives that address
remaining ODS use:
v sector-wide phaseout, a performance-based
approach that combines comprehensive national
policy measures with financial incentives to help
all enterprises in an entire sector convert to
alternative technologies that do not involve ODS.
For example, the mobile air-conditioning sector
program in China has phased out the use of
CFCs in all new cars manufactured since 2001.
v focus on Small and Medium-sized Enterprises
(SMEs), an approach that aims at phasing out
ODS consumption by SMEs. The initiative
introduces methodology to identify and to encour-
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age enterprises to participate in phase-out
projects. The first project of this kind is being
conducted to phase-out CFC consumption by the
commercial refrigeration sector in Thailand.
v production phase-out initiatives, which target
ODS production directly. China has been
awarded US$150 million, and India US$82 million,
in Multilateral Fund grants to close down CFC
production during the coming decade. These two
projects target 67,000 ODP tons for phaseout.
v leveraging funding, which allows concessional
lending combined with grants from the Multilateral
Fund. For example, the Chiller Replacement
Program in Thailand involves an initial grant to
establish a revolving fund for replacing old CFCtype chillers with energy-saving, alternative
refrigerant technology. The savings earned will be
used to leverage additional funds to purchase
more non-CFC chillers.
Success of the Montreal Protocol so Far
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Effective
stratospheric
chlorine
15000
10000
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No
Protocol
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Montreal
1987
London
1990
5000
Copenhagen
Beijing
1992
Zero Emissions
0 1999
500
Montreal
Excess skin
1987
cancer cases
400
London
1990
No
300
Protocol
200
Copenhagen
1992
100
0
1980 2000 2020 2040 2060 2080 2100
Year
Effect of the Montreal Protocol - City names and years
What if the Montreal Protocol did not exist?
Between 1986 and 1999, the total global consumption
of CFCs was reduced from 1.1 million to 150,000
ODP tons. Calculations show that without the
Protocol, global consumption of CFCs would have
reached about 3 million ODP tons in 2010 and 8
million tons in 2060. By 2050 ozone depletion would
likely have been about 10 times worse than current
levels. This level could potentially have doubled, and
in some areas quadrupled, the amount of ultraviolet-B
radiation reaching the earth’s surface.
Potential damage. The potential human health
problems associated with this decrease in ozone
could have been staggering – an estimated 20 million
more cases of cancer and 130 million more cases of
eye cataracts. In addition, catastrophic consequences could potentially have followed due to severe
biological damage to ecosystems.
Successful outcome. If the Montreal Protocol is fully
implemented by all Parties, scientists predict that the
ozone layer should return to normal around 2050.
The World Bank’s Future Focus
Country Programs. The Bank will continue to play a
key role in supporting implementation of country
indicate where and when changes to the original 1987
Protocol took place (Source: WMO Scientific Assessment
of Ozone Depletion 2002)
programs for continued compliance with Protocol
obligations. The Bank’s National CFC Phase-out
Strategies aim to eliminate remaining CFC use by
identifying all projects needed to meet final targets in
each country. Activities in other areas –for example,
methyl bromide, carbon tetrachloride, and the
process agent sector – are also continuing in order to
meet the goal of total ODS phase-out.
World Bank Environment Strategy. On a broader
plane, the World Bank’s success as a Montreal
Protocol implementing agency addressing the global
issue of ozone depletion has provided a precedent
and a mandate for a role in a number of global
environmental issues contained in the Bank’s Environment Strategy. In addition to ozone depletion, these
issues include: climate change, loss of biological
diversity, deforestation, degradation of water resources, and desertification. The Bank’s experience
with the Montreal Protocol has shown a way forward
for solutions to global environment issues that are
critically important to the Bank’s mission of poverty
reduction and sustainable development.
9/2003
For more information on any projects mentioned in this summary, please refer to individual project briefs available from
MP Operations, the World Bank or from the website:
http://worldbank.org/montrealprotocol