EU Proposes a Regulation on F-gas – Quota Allocation Subject to Payment

On March 1, 2023, members of the Committee on the Environment, Public Health and Food Safety (ENVI) adopted their opinions on amending the regulation on fluorinated greenhouse gases (F-gas) emissions with 64 votes in favor, eight against and seven abstentions, and the further target is to accelerate the transition to climate neutrality. The report is scheduled to be adopted during the March 29-30, 2023 plenary sitting and will constitute Parliament’s negotiating position with EU governments on the final shape of the legislation on F-gas.

Here is the amendment on F-gas:

1. Phase-down and total phase-out of HFC by 2050, and the form below enumerates the quota allocation.

2. Date of prohibitions on equipment is listed in Annex IV.

Fire protection equipment (2024.1.1)

Domestic refrigerators and freezers that contain F-gas (2025.1.1)

Stationary refrigerators and freezers for commercial use (self-contained equipment) that contain F-gas (2024.1.1)

Transport refrigeration in vans and ships that contain, or whose functioning relies upon F-gas (2017.1.1); in trucks, trailers and reefer containers that contain, or whose functioning relies upon F-gas(2029.1.1).

Stationary split air-conditioning and split heat pump equipment(2027.1.1)

Foams that contain F-gas (2030.1.1)

Personal care products containing F-gas (2024.1.1)

Equipment used for cooling the skin that contains, or whose functioning relies upon, F-gas with a GWP of 150 or more; (2024.1.1)

Installation and replacement of electrical switchgear;

Mobile air conditioning in passenger and cargo ships, buses, trams, and trains that contain, or whose functioning relies upon, fluorinated greenhouse gases (2029.1.1) Mini, displacement, and centrifugal chillers that contain, or whose functioning relies upon, F-gas (2027.1.1)

3. From January 1, 2024, stationary split air-conditioning equipment that contains, or whose functioning relies upon, F-gas listed in Annex I with GWP of 150 or more is prohibited; mobile air conditioning equipment, heat pump, and chillers that contain, or whose functioning relies upon, F-gas listed in Annex I with GWP of 2,500 or more.

4. The allocation of quotas is subject to the payment of the amount due which equals five euros for each tonne of CO2 equivalent of quota to be allocated in the period 2024-2026 and shall increase every three years thereafter so as to guarantee constant revenue, considering the quota phase down laid out in Annex VII.

5. In cases of unlawful production, import, export, placing on the market, or use of fluorinated greenhouse gases or of products and equipment containing those gases or whose functioning relies on those gases, Member States shall set out minimum administrative fines of at least four times the market value of the concerned gases or products and equipment concerned and maximum administrative fines of at least six times the market value of the concerned gases or products and equipment concerned. In case of a repeated infringement within a five-year period, the Member States shall set out minimum administrative fines of at least seven times the value of the gases or products and equipment concerned and maximum administrative fines of at least ten times the value of the gases or products and equipment concerned.

CIRS Comments

Since there is a good chance that this proposal will be adopted by the end of March, enterprises must pay attention to the following contents:

1. There is no additional quota for HFCs; which means the allocation of quotas is subject to payment;
2. The incoming phrase out HFCs on appliances such as refrigerators, air-conditioning, and enterprises who intend to introduce these appliances to the EU market may choose alternatives; and
3. Minimum administrative fines for non-compliance is proposed and enterprises shall make sure their products are in compliance with relevant laws and regulations.

If you need any assistance or have any questions, please get in touch with us via service@hfoushi.com.

Further Information

Fluorinated gas emission reductions to advance EU fight against climate change