The Multilateral Fund leads global efforts under the Montreal Protocol, channelling finance, facilitating cooperation and supporting environmental protection to achieve a sustainable future for all. The mission of the MLF is to support developing countries (Article 5) to eliminate ozone-depleting substances and greenhouse gases, build resilience to climate change, improve public health, and create a healthier and livable world. To achieve its mission, the Multilateral Fund (MLF) works with 144 Article 5 countries to mobilize investment in projects that phase out ozone-depleting substances and reduce emissions of potent greenhouse gases in sectors such as refrigeration, air conditioning, industrial cleaning and agriculture. By advocating for a transition to climate-friendly alternatives, MLF protects the well-being of future generations.
Over the past three decades, the Multilateral Fund (MLF) has clearly demonstrated how international cooperation, innovative financial mechanisms, and a well-planned strategic approach can deliver far-ranging benefits. Through its global initiatives, MLF phased out ozone depleting substances, mitigated climate change, contributed to the Sustainable Development Goals (SDGs) and funded projects with positive impact on people’s lives.
The Fund has been instrumental in the complete phase-out of CFCs, CTC, halons, methyl bromide and methyl chloroform in Article 5 countries, with the elimination of HCFCs expected by 2030.
Under MLF’s guidance, Article 5 countries have phased out the consumption of more than 756,000 metric tons of baseline ODS, the equivalent of 2.2 billion tons in CO2 avoided from 1991-2021.
At the rate of US$ 0.07 per ton of CO2-equivalent (CO2-eq) removed from the atmosphere, MLF has contributed to the avoidance of billions of tons of CO2-eq emissions at a fraction of the cost compared to other sectors. Between 1995 and 2021, the total avoided emissions from Article 5 countries are estimated at 51.1 gigatons of CO2-eq, a US$ 2 trillion savings to society (based on a social price of carbon of US $40/CO2-eq ton).
A total of 9,321 projects until 2022 have been approved by MLF in 144 Article 5 countries, 85% of which have been completed. These projects include the establishment of national ozone units, training programs for technicians and customs officers, and the implementation of regulatory and legislative frameworks, among others. In addition to safeguarding the environment, such initiatives spark business innovation and job creation in developing countries.
As of 2021, US$ 4 billion in financing has been allocated to developing countries through innovative financial mechanisms, such as revolving funds and performance-based payments, incentivizing the adoption of sustainable technologies and practices. Every dollar, policy and procedure is meticulously reviewed and approved by the Executive Committee to ensure compliance with the Montreal Protocol.
The Fund expands the legacy of the Montreal Protocol by contributing to the Kigali Amendment, an agreement to decrease the use of hydrofluorocarbons (HFCs) whose global warming potentials (GWPs) range from 53 to 14,800. Limiting use of HFCs will prevent the equivalent of approximately 105 billion tons in CO2 emissions, helping avert a global temperature rise of up to 0.5 degrees Celsius by 2100.
From gender equality to climate action, good health and well-being to decent work and economic growth, MLF drives progress on multiple SDGs, moving the world closer to a more sustainable and equitable future. Year after year, MLF’s impact resonates across the spectrum of SDGs, demonstrating its pivotal role in fostering a safer, healthier, and more sustainable planet for all.