EU notifies WTO of proposed Regulation on fluorinated greenhouse gases

On 9 November 2023, the European Commission notified to the World Trade Organization (WTO) of a proposed regulation to reduce emissions of fluorinated greenhouse gases (Proposal for a Regulation of the European Parliament and the Council on fluorinated greenhouse gases amending Directive (EU) 2019/1937 and repealing Regulation (EU) No 517/2014). The notification is open for comments for 60 days from the date of notification.

Fluorinated greenhouse gases

Fluorinated greenhouse gases are man-made greenhouse gases (GHG) with a high global warming potential. Examples of fluorinated GHGs are:

• Hydrofluorocarbons (HFCs)

• Perfluorocarbons (PFCs)

• Sulphur hexafluoride

• Nitrogen trifluoride

GHGs are used in common appliances such as refrigerators, air conditioners, heat pumps, fire protection, foams and aerosols. They are covered by the Paris Agreement along with CO₂, methane and nitrous oxide and account for around 2.5% of EU’s greenhouse gas emissions.

Further reductions in emissions of fluorinated gases are required to support the European Union's climate goals and comply with the Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer. Earlier this year, the European Parliament and the Council agreed on measures to reduce emissions of ozone-depleting substances.

Proposed Regulation

The European Commission’s proposed regulation include limits on the placing on the market of HCFs. It also lays down conditions for the import, export, placing on the market and further supply and use of fluorinated gases and of certain products and equipment that contain or rely on these gases.

The objective of the proposed Regulation is to implement measures aimed at reducing emissions from fluorinated GHGs that contribute to global warming. These measures are intended to contribute to achieving the objectives of the Paris Agreement, in particular to limit the global average temperature increase to 1.5 °C. At the same time, they aim to meet the EU’s commitment under the Montreal Protocol to phase down HCFs. This initiative is in line with the broader objective of protecting the environment.

The full text of the proposed Regulation is available here.

Timeline

On 5 October 2023, the European Council and the European Parliament reached a provisional agreement on the proposed Regulation, which sets 2050 as the year by which the consumption of HFCs should reach zero and 2036 as the year by which the production of HFCs (in relation to the production rights allocated by the Commission) should be phased down to a minimum (15%).

The proposed Regulation is expected to be adopted by February/March 2024 and enter into force at the same time.