ENVI – Phasing down the use of super greenhouse gases (F-gases)

Fluorinated greenhouse gases (F-gases) are industrial greenhouse gases whose climate warming potential can be up to 23,000 times more potent than carbon dioxide (CO2). While all other greenhouse gases have been reduced, F-gas emissions in the EU have risen by 60% since 1990. HFC-based products and equipment can have long lifetimes of up to 50 years and therefore additional legislation was needed now to prevent emissions from increasing for several decades to come. 

Through ambitious global leadership in restricting the use of such gases, Europe can maintain its competitiveness in the field of innovative refrigeration, cooling and heating technology in line with environmentally stewardship. With this legislation, the Greens actively supported innovative companies which invest in sustainable and efficient products. For example, most refrigeration and air-conditioning systems still rely on super climate damaging greenhouse gases. Fortunately, environmentally friendly alternatives exist and more than 400 European manufacturers and businesses are already working with them. 

The new legislation will also act as a stepping stone for an international agreement to phase out these super greenhouse gases. 

There are sustainable alternatives to F-gases that can replace almost all new HFC-based equipment now and in the near future. Phasing-out the use of HFCs will enhance sustainable growth, spur innovation and reward European companies that have invested in green technologies. The Green who drafted the text therefore pushed for bans on using HFCs in stationary air-conditioning and refrigeration equipment from 2020. The Greens also convinced the Parliament to go for a faster over-all phase down, to require Member States to set up recovery schemes, and to introduce a fee for using the F-gas quota.

Despite needing to compromise on the initial Green - and Parliament - ambition, the outcome of this legislation represents the single biggest contribution to climate protection achieved during this legislature. 

Importantly, the environmental integrity of the legislation and the phase-down schedule, representing 79% reductions in F-gases from current use by 2030, are maintained. Additional bans on using HFCs in the most important refrigeration and air-conditioning applications were included. The ban for HFCs used in small air-conditioning systems is crucial, as it is one of the fastest growing uses, and one where boosting European manufacturers of sustainable alternatives will bring new green jobs replacing mainly imported equipment. Furthermore, the law requires by-product emissions of fluorinated compounds from production of HFC to be destroyed or recycled, also for imports. This is significant since HFC production often occurs in third countries with no restrictions on by-product emissions (like HFC-23 emissions) or binding obligations to reduce greenhouse gas emissions. 

The Greens also pushed for an allocation fee of 10 euros per tonne of CO2-equivalent of HFCs, instead of handing the HFC-quota out for free, in line with the polluter-pays principle. The revenues could have been used to support the implementation of the new legislation, help broker an international agreement and address regional divergences within Europe.

Unfortunately, a majority of Member States did not agree to the fee.  By allocating the HFC-quota for free, there is a risk that windfall profits will flow in the pockets of the handful HFC-producers.

The Greens were able to negotiate a review in 2017 that assesses the merits of introducing an allocation fee at that stage.