1. EU F-Gases Proposal EU-Korea Seminar Seoul, 7-9 November 2005 Peter Horrocks DG Environment

2. Why a Proposal?
EU (15) emissions of F-Gases about 65 MTCO2 eq in 1995 (2% of total EU emissions)
98 MTCO2 eq in 2010 (2-4% total EU (15) emissions)
Increase explained by phase-out of ozone depleting substances
Refrigeration/air conditioning including mobile A/C in cars and heat pumps key sectors

3. Main Elements Containment and recovery measures
Training and Certification
Data reporting requirements
Marketing and use restrictions
Prohibition on HFCs > 150 GWP in Mobile Air Conditioning in motor vehicles

4. Legislative Process – To date
2002/2003 Preparatory Process in European Climate Change Programme
Commission Proposal on F-Gases (COM (2003) 492 final) of
Parliament’s First Reading –
Political Agreement
Common Position
Commission Communication on Common Position (COM (2005) 296 final

5. Common Position 21 June 2005 One proposal but two elements
Regulation for containment and recovery, use bans and prohibitions
Directive for phase out of HFCs > 150 GWP in mobile air conditioning systems in motor vehicles

6. Legal Base of Regulation
Commission proposal based on Article 95 – Internal Market
Directive on MACs – Article 95
Common Position provides for a dual Legal base
Containment, Recovery, Certification and Labelling under Article 175
Use bans and prohibitions under Article 95 (Articles 7, 8 and 9)

7. Scope Common Position covers:
Fluorinated greenhouse gases in Kyoto Protocol
Applies to fluorinated gases listed in Annex I together with respective GWPs
GWPs base on third assessment of IPCC
Annex I can be reviewed and updated in the light revisions under Kyoto Protocol (Article5(3))
Preparations containing fluorinated greenhouse gases with a GWP< 150 not covered by provisions of the Regulation

8. Containment Applies to stationary applications in Article 3
Obligation to minimise leakages and repair as soon as possible
Frequency of inspection schedule
Inspection by certified personnel
Leakage detectors defined
Operator defined, owner can be responsible for operator’s role
Inspection for leakage defined
Maintenance of records on inspections and servicing companies and personnel
Commission to define standard inspection requirements in Committee

9. Inspection Schedule Stationary Applications
Quantity of Fluorinated gases
Frequency of Inspections per annum
3 kg or more and 6 kg if hermetically sealed
One
30 kg or more
Two
300 kg or more
Four
30 kg and 300 kg with leakage detector
Halving of inspections

10. Recovery
Recovery an obligation for operators by certified personnel e.g. stationary equipment
Stationary equipment includes refrigeration, air- conditioning equipment, fire protection systems, equipment containing F-Gases solvents and high voltage switchgear
Recovery obligatory from refillable and non-refillable containers at end of life
Recovery in other products and equipment if technically possible and not disproportionate cost (e.g. foams, mobile air conditioning and refrigeration equipment except if serving military operations and mobile air conditioning)
Recovery to take place before final disposal or during servicing and maintenance

11. Training and Certification
Commission to establish minimum requirements and mutual recognition
Member States to establish or adjust their programmes to comply and notify Commission
Commission to establish notification format
Training and certification covers relevant personnel and companies and their relevant personnel
Operators have an obligation to ensure personnel used are trained and certified
Only certified personnel to take delivery of fluorinated ghg

12. Labelling
New Article on labelling certain products and equipment containing fluorinated greenhouse gases – chemical name, using accepted industry nomenclature and indication it contains fluorinated greenhouse gases
Applies, inter alia, to refrigeration equipment including mobile refrigeration equipment
Commission with the committee shall establish the form of the label
Aim is to assist personnel dealing with the applications

13. Review
Review of refrigeration systems in modes of transport and air conditioning systems other than those in motor vehicles
Assess effectiveness of containment measures and see if maximum leakage rates possible
Evaluate training and certification programmes in MS
Review reporting requirements
Assess need for European standards for controlling emissions of fluorinated ghg
Evaluate effectiveness of containment measures
State of technology review and best available techniques and environmental practices
Review of SF6 uses and possible revision of provisions in Regulation
Assess whether other products and equipment can be included in Annex II - prohibitions

14. Data Reporting Data reported to Commission Production Imports Exports
Uses
Emissions

15. Use Restrictions
SF6 for filling vehicle tyres from date of entry into force
SF6 in magnesium die-casting except < 850 kg a year from 1 January 2008

16. Marketing Restrictions
F-Gases in non-refillable containers –date of entry into force
HFCs and PFCs direct evaporation - self chilling drinks cans – entry into force
F-Gases Tyres –date of entry into force
PFCs fire protection systems and fire extinguishers
F-Gases windows/domestic – date of entry into force
F-Gases other windows -2 years after entry into force
F-Gases footwear – date of entry into force
F-Gases one-component foams –date of entry into force
HFCs novelty aerosols -2 years after entry into force

17. Committee
Commission to be assisted by Committee instituted by Article 18 of Regulation (EC) No 2037/2000 – Ozone Layer Regulation
Regulatory Procedure

18. Commission Position on Common Position Regulation
Many of the Parliament’s amendments that have been included in the Common Position improve transparency and clarity
Commission supported the dual legal base
Supports the Council in rejecting Parliament’s proposals to change dual legal base to sole legal base of Article 175 and further prohibitions
In general the Commission supports the Council’s Common Position

19. Issues Relevant to MACs
Legal Base
Harmonised leakage detection tests
Start and end of phase out
Coverage – HFC 152a
Review
Entry into force

20. Political Agreement – Directive MACs
Legal base remains Article 95 –internal market
Within 12 months of date of adoption of harmonised leakage detection test or no type approval for MACs with HFCs having a GWP>150 unless leakage rate is <40 grams per annum for single and <50 grams for dual evaporator systems. This applies to new vehicles from 24 months of date of adoption of harmonised leakage detection test or
The system is based on type approval, no quota system
No type approval for MACs with HFCs having a GWP>150 from and for new vehicles
MACs using HFCs with a GWP < 150 allowed
Review five years after entry into force, possible application to commercial vehicles and buses

21. Commission Position on Common Position Directive
Many of the Parliament’s amendments that have been included in the Common Position improve transparency and clarity
Neither the Council or Parliament supported the quota system but since environmental ambition maintained can accept type approval procedure
Supports the Council in rejecting Parliament’s proposal to reduce GWP of HFCs in MACs from 150 to 50 since it would exclude HFC 152a
In general the Commission supports the Council’s Common Position

22. Type approval system in the EU started in 1970 with the Council Directive 70/156/EEC on the approximation of the laws of the Member States relating to the type-approval of motor vehicles and their trailers
See:
Tell that the EU has a long tradition of regulating vehicles with a system based on the approval of the types of vehicles. The details of this system can be found in the web-site. The main point is that all car manufacturers in the world know the EU type approval system and use it to get the approval of the authorities to sell cars in the EU.

23. Commission Communication on Common Position
Many of the Parliament’s amendments that have been included in the Common Position improve transparency and clarity
Neither the Council or Parliament supported the quota system but since environmental ambition maintained can accept type approval procedure
Supports the Council in rejecting Parliament’s proposal to reduce GWP of HFCs in MACs from 150 to 50 since it would exclude HFC 152a
In general the Commission supports the Council’s common position

24. Second Reading Proposed EP Amendments - Regulation
Article 175 as legal base
Add term « circuits » to equipment
Introduces term « control of use » instead of inspection
Improved definition of hermetically sealed systems
Training and certification requirements to cover installation and servicing
Clarification of terms « companies and their relevant personnel
Registration number for each stationary application
Review of records of inspections every 2 years by competent authorities
Labelling to include global warming potential

25. Second Reading Proposed EP Amendments - Regulation
In evaluation of containment in review take into account representative data from operator records in Member States
Bans placing on market domestic refrigeration systems containing HFCs with less than 150 grams four years after entry into force
Bans placing on the market of commercial and industrial refrigeration with HFCs from
Bans placing on the market of air-conditioning equipment with HFCs from
Bans use of fluorinated gases where safe, technically feasible and cost-effective alternatives available

26. Second Reading Results
Parliament adopts 26 amendments on Regulation most technical amendments
Rejects amendments for a sole legal base of Article 175
Rejects Bans for additional products
Article allowing MS to take individual measures
Adopts Common Position on Directive apart from one amendment on fiscal incentives

27. Next Steps on F-Gas Proposal
Conciliation may not be necessary to finalise agreement by end 2005 (UK Presidency) if agreement can be reached on basis of Common Position and EP amendments
Regulation entry into force one year after approval - end 2006 then 1 January 2007
Directive entry into force two years after approval - end 2006 then 1 January 2008

28. Deciding on the F-gas Regulation 2nd reading = Common Position?
European Parliament
1st reading
2nd reading
European Commission
proposal
2nd reading = Common Position?
Common position
Council (Member States) no
Council and Parliament negotiate through „Conciliation“ procedure
Note: It is possible to agree already during “1st reading“
yes
Law

29. Responsibilities of Commission and Member States
Timetable for Implementation of Regulation Assuming entry into force – 1 January 2007
Date
Responsibilities of Commission and Member States
1 January 2007
Commission to establish standard inspection requirements for refrigeration, air conditioning, heat pumps and fire fighting systems (Article 3)
Commission to establish minimum requirements and mutual recognition for training programmes and certification for personnel in refrigeration, air conditioning, heat pumps and fire fighting sectors (Article 5)
Commission to establish format of notification (Article 5)
1 January 2008
Member States adapt training and certification requirements to meet minimum requirements- notify Commission (Article 5)
Member States to ensure companies involved in containment and recovery use qualified personnel for delivery of fluorinated greenhouse gases (Article 5)
Mid- 2007
Format for Reporting provisions (Article 6)
Commission to establish form of label (Article 7)
1 January 2011
Review by Commission – evaluate training and certification, containment measures (assess need for maximum leakage rates), technology developments and prohibitions in Annex II (Article 9)

30. Estimated Effects Applies to 25 Member States – 450 million people
Emission reduction around 21 Mtonnes of CO2 eq by 2012
15 Mtonnes of Co2 eq: containment
6 Mtonnes of CO2 eq: prohibitions and use bans
2020 around Mtonnes of CO2 eq per annum with full benefits of phase out of HFC 134a in MACs

31. Implications for Third Countries
Auto industry important growth pole in countries such as Korea
Need to build cars to meet world wide standards - develop exports and overseas facilities– as well as expanding domestic markets
The MAC standard in the future is going to move away from HFC 134a (climate change concerns)
EU market will switch away by the end of this decade probably followed by other countries
In this context, Governments and vehicle makers in car producing countries need to make strategic decision on future path for their auto industries
The Regulation will have some impact on certain products banned from being placed on the EU market from third countries
Blueprint for further action on fluorinated greenhouse gases0

32. Conclusions Contributes to meeting Kyoto objectives
Final content still to be determined
Commission objective is to ensure that environmental ambition of its proposal maintained
First step in regulating emissions of fluorinated greenhouse gases
Focus on containment and recovery – relevant sectors have to ensure that this works

33. Further Information Commission Communication 2001
Report of working group
Climate Change Unit web-site
Contact