Since signing the Montreal Protocol in 1991, China has complied with the Protocol's procedural requirements and has satisfied its substantive obligations for reducing ozone-depleting substances by meeting the 1999 freeze targets and making progress towards reaching the 50 percent reduction goals for 2005. The Protocol's Multilateral Fund has played a key role in China's compliance. The sector-based approach to funding, which approved sector-level funding and targets for reduction of ozone-depleting substances, has been much more effective in changing government and industry behavior than the previous project-by-project approach, which required an application and approval procedure for each individual project. Other factors contributing to China's success include the use of market-based policies and regulations, positive government leadership and capacity building, and the participation of local environmental protection bureaus in implementing the Protocol.