HFC Phase Down (Regulation)

  • Regulation, both national and international, has been one of the most important drivers for spurring investment in new technology. The figure below charts an overview of phase-downs or phase-outs that have already been imposed on the industry and some possible projections for the future. Guidance measures can be voluntary or imposed by regulation (the red triangle), but they all mean to place limits within the market. Besides guidance measures on market development, there is an underlying concern of the availability of sustainable solutions (the green triangle). When new regulations are made, they are intended to encompass these parameters and predict reasonable successful outlooks, but there are always a number of challenges that needs to be solved by industry leaders and legislators along the path of change.

    HCFCs, particularly R22, have already been phased-out in the EU and the phase-out is close to being finalized in the US and other developed countries. Developing countries began phasing out HCFCs in 2015 and will continue until 2030. It is important to remember that HCFCs like R22 are used in many different applications, which makes phasing them out a challenge as no single low-GWP refrigerant can replace them.

     

  • Refrigerants-HFC-01
  • In October 2016, the HFC phase down steps were agreed upon and became a part of the Montreal Protocol, which go into effect on January 1, 2019, pending approval. If approval is given after that date, the amendment will enter into effect 90 days afterwards. Besides the phase-down and phase-out mechanisms discussed above, many governments are applying measures for reducing high GWP refrigerants consumption, such as GWP weighted taxes. Spain, Denmark, Norway, and Sweden have imposed taxes on HFCs. Additionally, national incentives in the form of subsidies on low GWP refrigerants are currently being used in many other countries.

     

  • Refrigerants-HFC-Refrigerant-Regulations-02

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