EU Policy on fluorinated greenhouse gases and ozone depleting substances F-Gas/ODS stakeholder meeting London, 16 January 2009 Thomas Verheye, Marios Avraamides European Commission, DG Environment Industrial Pollution, Ozone Layer Protection, and Fluorinated Gases

Content An Industry in Transition From CFCs to HCFCs: Protecting the Ozone Layer  The Vienna Convention and Montreal Protocol  The Regulation EC (N°) 2037/2000 on Substances Protecting the Ozone Layer From HCFCs to Low GWP: Protecting the Ozone Layer and Maximizing Climate Change  The UNFCCC and the Kyoto Protocol  The Regulation 842/2006 on certain F-gases and Directive 2006/40/EC  Future F-gases regulations? More Information

An Industry In Transition Refrigerants Foam Expansion Solvents Propellants Fire Extinguishants CFCs HCFCs HFCs Refrigerants Other Thousands of tonnes

From CFCs to HCFCs Protecting the Ozone Layer Refrigerants Cleaning solvents Aerosol propellants Blowing agents for foam manufacturing ODPGWP (4AR) MP/KP Chlorofluorocarbons (CFCs) ,750 14,420 MP Hydrochlorofluorocarb ons (HCFCs) ,310 MP

Vienna Convention / Montreal Protocol Regulation 2037/ Vienna Convention  1970 discovery of ozone depletion due to chlorines and bromines 1987 Montreal Protocol as amended  Focus on consumption phase out (ltd provisions for emissions)*  Consumption = Production + Import – Export [ - Destruction**]  Phase-out = Baseline / Freeze / Reduction steps / Ban [/ Essential Uses]  Annual Reporting, Monitoring and Control (Implementation Committee) Regulation EC (N°) 2037/2000  Montreal Protocol  + use bans, recovery and leak checking provisions  + annual quota and licensing procedures… * Excluding certain ODS uses e.g. for feedstock uses ** Not mandatory; could increase production or import margin for a fixed consumption level

Vienna Convention / Montreal Protocol Regulation 2037/2000

StrengthsWeaknesses Effective policy framework contributing to: Near complete phase out of controlled ODS Clear evidence of decreasing ODS in atmosphere Prospects of ozone layer recovery between Significant indirect environmental benefits (climate) Efficient policy framework due to: Staged phase-out regimes Post-phase out exemption regimes On-line ODS licensing, Etc Complex Regulation Rigid quota and licensing procedures Extensive reporting requirements Limited means for reducing ODS/GHG emissions Synergies with other EC policies OpportunitiesThreats Early ending EC post-phase out / exemption regimes: Critical use of MB (2009) Essential use of CFCs for MDIs (2010) HCFC Production New Scientific Assessment & TEAP Reports (2006) New data on ODS/GHG "Banks“ Updated risk assessment re: recovery timing Dialogue on the future of the MP Fading Commitment to Remaining Phase-Out Growth HCFCs in Developing Countries / Phase Out Slowing Int'l reduction in ODS essential/critical uses Fading R&D prioritization and donor attention Emissions from "non-controlled" ODS? Banks, QPS, New/short-living ODS Feedstock Use Illegal / Harmful Trade Climate change impacts stratospheric temperature

Vienna Convention / Montreal Protocol Regulation 2037/ HCFC Accelerated Phase-Out (Decision XIX/6)

Vienna Convention / Montreal Protocol Regulation 2037/2000 Bank Emissions MT CO2e ( ) Approx. 3.5% of current global GHG emissions

The Regulation EC (N°) 2037/2000 (August 2008 Recast Proposal) Context  Better Regulation  2006 Scientific Assessment Report  Remaining EU ODS uses & Stakeholder consultations Objectives  Simpler Regulation (complexity & administrative burden)  Up to Date Regulation (latest changes in Montreal Protocol)  Enabling Regulation (remaining challenges banks, illegal trade, etc.) Documents  Proposed Legal Act (recast format)  Communication  Impact Assessment

The Regulation EC (N°) 2037/2000 (August 2008 Recast Proposal) Cont’d HCFC Phase Out (Selected elements)  No placing on the market and use of virgin HCFC as of 2010 (baseline)  Until 2015: Only reclaimed HCFC may be placed on the market, use of recycled HCFC only in own RAC equipment  Adjusting the HCFC production phase from 2025 to 2020 (Dec XIX/6) Enforcement / Trade (Selected elements)  Risk-based vs. random inspections  No imports of HCFC (2010 base line)  General ban on imports and exports of products and equipment, extended to those manufactured before entry into force of the use ban  Case-by case derogations (no availability of alternatives, disproportionate costs), not beyond 2019  Licensing procedure extended to products and equipment  No exports of recycled HCFC

The Regulation EC (N°) 2037/2000 (August 2008 Recast Proposal) Final Emissions & Banks (Selected elements)  Mandatory recovery of controlled substances from RAC and heat pump equipment (among others) maintained (baseline)  Admissible destruction technologies listed in Annex VII  For other products and equipment: recovery of ODS mandatory if technically and economically feasible => legal basis for COM to establish a list of such products New substances (Selected elements)  Re-establishment of Annex II: Part A: Ozone-depleting substances not yet controlled, to which the control measures apply Part B: Ozone-depleting substances not yet controlled, on which undertakings have to report

From HCFC to Low GWP Alternatives Maximizing Climate Co-benefits Principal HCFCs / GWP (full range 77 – 2,310) 22141b142b123 1, ,31077 Principal Uses/Applications RAC / Heat PumpsFoams Solvents Foams RAC RAC Fire Extinguishing HFCs currently offering HCFC alternatives (full range 77 – 14,800) 23, 134a, R404A, R407C, R507A, R410A,.. 134a, 245fa, 365mfc,...125, 227ea,… 77 – 14, Current / Potential low-GWP HCFC alternatives HC, CO2, ammonia, (low GWP R?) Hydrocarbons, CO2, ammonia (low GWP R?) CO2 / inert gases / water mist <1 - <25 <1

EU F-gas Regulation Regulation 842/2006 related to certain F-gases  To contain emissions from stationary sources  By mandatory leak checks by certified personnel  By recovery, recycling, and destruction  Also including limited placing on the market and use bans Directive 2006/40/EC relating to emissions from air-conditioning systems in motor vehicles  Maximum leak rates for HFC > 150 GWP  Ban HFC > 150 between 2011 and 2017 EU Regulatory Standards leading global action  Promoting both containment (short/medium term) and innovative zero/low GWP substitutes First Review due in 2011 * Excluding certain ODS uses e.g. for feedstock uses ** Not mandatory; could increase production or import margin for a fixed consumption level

1.Control of leakage of certain fluorinated greenhouse gases with a global warming potential (GWP) > 150 in MACs : max 40 (60) grams/year for single (dual) evaporator system  21/6/2008 for new types of vehicles/ 21/6/2009 for all new vehicles 2.The prohibition of MACs using F-Gases with GWP>150  1/1/2011 for new types of vehicles / 1/1/2017 for all new vehicles 3.Review potential extension to other categories of motor vehicles (2011)  Buses and Coaches - Categories M2 & M3  Commercial vehicles - Category N1 classes II and III Directive 2006/40/EC

Applications of F- Gases placed on the EU market

US – EC Trends in HCFC and HFC emissions EU: See EU F-gas Regulation EU: See EU ozone Regulationhttp://ec.europa.eu/environment/ozone/index.htm For illustration only

Future Global F-gas Regulation –An international Montreal Protocol style agreement to implement the global GHG reduction target? Issue “Placing on the market quota” stated in GWP terms; allow transfer of quota amongst producers/importers

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