New EU Legislation on F- Gases
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1 New EU Legislation on F- Gases motivation, objectives, impacts, innovation Arno Kaschl European Commission DG Climate Action Tel Aviv 31 March 2014 Climate Action
2 Relevance of fluorinated gases (F-gases) Gas GWP (AR 4, 100 year) CO 2 1 Methane 25 Nitrous Oxide 298 HFC 134a HFC 404A HFC 410A HFC Source: UNEP, 2011 PFC SF Climate Action
3 Source: European Environmental Agency,
4 Source: European Environmental Agency,
5 MOTIVATION 2050 Low Emission Roadmap (2011) Warming should be limited to 2 C EU contribution to global effort is to reduce GHG emissions by 80-95% (1990- level) Sectoral contributions F-gases are low-hanging fruits for mitigation Several suitable (safe, energy-efficient, cheap) low GWP alternatives available for most sectors Abatement costs are modest 100% 80% 60% 40% 20% 0% Power Sector Residential & Tertiary Industry Transport Non CO 2 Agriculture Non CO 2 Other Sectors 40% Current policy % 80% 60% 40% 20% 0%
6 Pre-2014 EU F-gas Policy (2006+) for our 28 EU Member States (1) F-Gas Regulation Focus on "Containment" - leak prevention in existing equipment, e.g. leak checks - training and certification of relevant personnel - recovery of gases after use - record keeping and reporting - some bans (2) MAC Directive - bans of HFCs >150 in passengers cars and light trucks Also policies on ecodesign, ecolabelling, waste,
7 OBJECTIVES New EU F-gas policy must contribute consistently and cost-effectively to the EU 2050 GHG reduction targets stimulate innovation/improve market opportunities for alternative technologies/ gases with lower GWP be consistent with international agreements be efficient and proportionate 7
8 F-gas emissions in without measures and the effects of the F-gas Regulation/MAC Directive Without existing F-gas legislation With existing '2006 F-gas legislation' & MAC Directive Legislation from 2006 can achieve a stabilization of emissions, reducing emissions by almost 50% Not sufficient for EU climate goals, Roadmap Source: Schwartz et al Additional potential from New Fgas Regluation (2015+) New Fgas Regulation will decrease emission by >70 Mt CO2eq. (two-thirds of today!)
9 New Fgas Regulation from 2015 onwards Two strategies to reduce emissions Prevent leakage and emissions Emission prevention and leak checks -> Art. 2-4 Control of by-production -> Art. 6 End of life treatment of products and equipment -> Art. 7 Training and qualification -> Art. 8 Information for users (labelling, product infos) -> Art. 10 Avoid the use of F-gases Training and qualification Ban on new applications -> Art. 9 Ban on uses -> Art. 11 Phase-down of HFC supply -> Art. 13 ff.
10 HFC phase-down the main novelty Limit HFC bulk gas & gas inside equipment placed on the EU market Schedule: freeze 2015, first step 2016, reduction of HFC supply by 79% in 2030 (in CO 2 equivalent) Baseline: reported Quota allocation based on historical sales and new entrants reserve Monitoring: Ex post, Independently verified reports
11 New EU F-gas proposal: Adoption European Parliament Council of the EU 754 Members Ministers from all directly-elected EU Member States Political Agreement reached in December 2013 European Parliament adopted on 13 March 2014 Will be in force from May 2014, apply from 2015!
12 IMPACTS Environment: By 2030 reduction of >70 Mt CO2 eq. or two-thirds compared to Proposal fully consistent with EU Low Carbon Economy Roadmap Economic: GDP impacts to 0.009%. Conservative estimation based on today's (2010) costs and availability of alternatives Social: to jobs. No safety/occupational/health risks. European Commission, 2012, Impact Assessment Climate Action
13 Summary expected emission reductions [Mt CO2 eq.] Achieved (2010) Estimate 2020 Fgas Regulation 842/ Estimate 2030 Estimate MAC Directive 2006/40/EC New Fgas Regulation (xxx/2014) Σ Cumulative emission savings by the new Fgas Regulation alone amount to 0.63 Gt by 2030, and 2.4 Gt by Total cumulative savings of all 3 pieces of legislation are estimated to be 1.5Gt by 2030, and >5Gt by Climate Action
14 / tco 2eq Abatement Costs 150 EU-27 MACC emission reduction vs. WM scenario 2030 Marginal abatement cost curve ,000 40,000 60,000 80, ktco 2 eq Source: Schwartz et al Marginal abatement costs: 49 / ton CO2 eq. Average abatement costs: / ton CO2 eq. 14 Climate Action
15 Economic effects Detailed economic modelling Effects are small, but vary by sector (Small) direct positive effects on manufacturing (Small) direct negative effects on energy sector (due to higher energy efficiency of alternatives) Different market players: F-gas producers, equipment manufacturers, importers/ exporters, service companies, end users.. Climate Action 15
16 Economic effects: Competitiveness Effects on competitiveness are small Indirect effects e.g. on retail sector are marginal Effects on consumer prices are marginal, 0,00 to -0,01% Positive effects for innovative companies selling alternative equipment ("green growth") No replacement of existing equipment required Investment costs occur only at end-of-life Burden on retailers (SMEs and micro-enterprises) is kept low De minimis clauses Climate Action 16
17 Other Economic & Social Effects Administrative costs can be kept low <0.1% of direct costs to industry for phase-down Regional effects are small ca. 1 per inhabitant higher in Southern Europe due to higher use of AC equipment Equal treatment for domestic producers and importers no trade barriers Phase-down incentivises alternatives globally 17 Climate Action
18 Refrigeration % 2010 HFC Demand INNOVATION RAC Market Approximate GWP Threshold for New Product Ban Restrictions in EU legislation Domestic refrigeration 0.2% banned from 2015 (GWP>150) Commercial Small Hermetic 0.2% banned from 2020 (>2500) and 2022 (>150) Commercial Condensing Units 4% banned from 2020 (>2500) Commercial Multipack 33% banned from 2020 (>2500) and 2022 (>150) [allowing cascades with GWP<1500] Transport Refrigeration 1% Industrial Small / Medium DX 8% banned from 2020 (>2500) Industrial Large DX 3% banned from 2020 (>2500) Industrial chillers 1% banned from 2020 (>2500) Industrial flooded 0.1% banned from 2020 (>2500) Key to Traffic Lights Ban suitable (but may need small number of exemptions in some sectors) Ban may be suitable for part of sector, but more commercial development needed Based on work by SKM Enviros Ban not suitable at this time
19 Refrigeration options For smaller equipment (e.g. domestic fridges, standalone units), suitable alternatives are fully available, e.g. hydrocarbons are a safe, more energy-efficient alternative Climate Action
20 Climate Action Source: Shecco
21 Source: Shecco
22 Refrigeration options For larger commercial refrigeration, R404a is not cool anymore! R404a has GWP of almost 4000 There are more energy-efficient options (less costs for endusers!) with lower GWP available, e.g. R407 series as a drop-in solution (supermarkets in UK do it voluntarily!) CO2 in cascades (avoid efficiency issue under high T!) <> CO2 transcritical Climate Action
23 Source: Shecco
24 Source: Shecco
25 Air-Conditioning and Heat Pumps % 2010 HFC Demand RAC Market Approximate GWP Threshold for New Product Ban Restrictions in EU legislation Small portable units 1% banned from 2020 (<150) Split systems 20% banned from 2025 (<750) Packaged systems 0.4% VRF systems 2% Small and medium chillers 6% Large chillers 2% Domestic hydronic heat pumps 1% Other heat pumps 1% MAC: cars and vans 10% banned via MAC Directive (2011 for new car types, 2017 for new cars) MAC: large vehicles 7% Key to Traffic Lights Ban suitable (but may need small number of exemptions in some sectors) Ban may be suitable for part of sector, but more commercial development needed Ban not suitable at this time Based on work by SKM Enviros
26 Fire protection Aerosols Foams RAC Market Approximate GWP Threshold for New Product Ban Restrictions in EU legislation XPS banned from 2020 (>150) Others incl. PU banned from 2023 (>150) For novelty use banned from 2009 (>150) For technical use banned from 2018 (>150) HFC-23 banned from 2016 Key to Traffic Lights Ban suitable (but may need small number of exemptions in some sectors) Ban may be suitable for part of sector, but more commercial development needed Based on work by SKM Enviros Ban not suitable at this time
27 Other restrictions Banned: Non-refillable containers (2007) Non-confined direct evaporation systems (2007) One-component foams (2008, GWP >150) SF6 in windows (2007/8), footwear (2007), tyres (2007) SF6 in Mg manufacturing processes (2008/2018) Selling Fgases to undertakings that are not appropriately certified Servicing existing refrigeration equipment with >2500 (2020)
28 EU actions on F-gases in international context Increased EU demand for alternative technologies innovation and economies of scale also in other markets hence reducing costs of a global phase-down of HFCs Show leadership in reducing the emissions gap We are actively exploring further options for international collaborations to achieve faster reductions of HFC consumption There is a unique window to save money and effort by acting now, by (i) reducing existing use of HFCs, and (ii) using low-gwp alternatives when replacing ozone depleters
29 Our proposed way forward globally: Phasing Down of HFCs under the Montreal Protocol Profit from existing and well-functioning means of implementation under MP for the same industry sectors Important cost savings are possible if we avoid that high GWP HFCs are phased in first
30 Sign of the times Other important users are also taking action, e.g. Japan, US Climate Action
31 EU-US summit 26 March 2014: Joint Statement [..] 7. Sustainable economic growth will only be possible if we tackle climate change [..]The EU and the United States demonstrate leadership and are intensifying their cooperation, including: phasing out fossil fuel subsidies, phasing down the production and consumption of hydrofluorocarbons (HFCs) under the Montreal Protocol. [..] We are committed to ambitious domestic action to limit HFC use and emissions. Climate Action
32 It`s a time machine that we hope will take us back 50 years when we should have taken effective and cost-efficient measures Modified from: Tom Toles, 2010, Washington Post Climate Action
33 Relevant studies Clodic et al., 2013, Alternatives to high GWP HFCs In Refrigeration and Air conditioning applications Schwarz et al., 2011, Preparatory Study for a review of the Fgas Regulation SKM Enviros, 2013, Possible bans for new RAC equipment (Technical paper for European Commission) SKM Enviros, 2012, Phasedown of HFC consumption in the EU Assessment of Implications for the RAC Sector European Commission, 2012, Impact Assessment Climate Action
34 To know more Climate Action
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