Overview

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Under the Montreal Protocol on protecting the ozone layer, the European Union has adopted a new regulation (EU) No 517/2014 (F-GAS regulation) to control emissions from fluorinated greenhouse gases (f-gases) and reduce EU’s F-gas emissions by two-thirds by 2030 compared with 2014 levels. F-gases subject this new regulation contain three groups: hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF₆). Most of these F-Gases have high global warming potential (GWP).

They are contained or functioning in several types of products and equipment, including refrigeration, air-conditioning and heat pump equipment (of these three types called pre-charged equipment), fire protection system, electrical switchgear, foams, aerosols, solvents, and f-gas containers.

While the F-GAS regulation repeals the original Regulation (EC) No 842/2006 performed in 2006 and come into force from 1 January 2015. The 10 implementing Regulations adopted under the original Regulation remain in force and one of them regarding reporting is repealed recently by the Commission pursuant to the new F-GAS regulation.

The Commission has prepared guidance documents outlining the new obligations for the various stages of the whole lifecycle – from the production to the end of life – of F-gases, as well as FAQ document for users and technicians reporting on F-gases under the new regulation. Consequently, various actors are affected by the F-GAS regulation with specific requirements and obligations.

Obligations

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 Quota Allocation for Companies

Who is affected?

The Commission shall allocate quotas for placing hydrofluorocarbons on the market for each producer and importer for each year beginning with the year 2015. In the quota allocation process, a distinction is made between two types of companies:

1. Incumbents

Incumbents are companies that have reported, in compliance with Regulation (EC) No 842/2006, having placed more than 1 metric tonne of HFCs on the Union market in at least one year in the period 2009 to 2012. From 2015, officials conduct an evaluation every three years and give reference values to some undertakings who have applied quotas for three consecutive years.

2. New entrants

New Entrants are those companies that have not reported according to Regulation (EC) No 842/2006 in the period 2009-2012. After that, each undertaking registered for the first time is considered as a new entrant.

What is the quota allocation?

Quotas shall only be allocated to producers or importers which are established within the Union, or which have mandated an only representative established within the Union for the purpose of compliance with the requirements of this Regulation. The quotas are only allocated in tonnes CO2 equivalent.

1. For incumbents, they may thus be allocated a quota on the basis of a reference value as well as by declaring additional anticipated quantities in accordance with Article 16(1), (4) and (5), and Annexes V and VI of the Regulation.

2. While for new entrants, the quotas may be allocated to these entities on the basis of a pro-rata distribution taking into account the declared needs (refer to Annex VI of F-GAS Regulation). Declaration of need and allocation of quota is repeated on a yearly basis.

It should be noted that manufacturers or importers of pre-charged equipment cannot apply quotas on their own.

How to use the quota?

1. Transfer of quota

According to Article 18 (1), the incumbents may transfer in the registry referred to in Article 17(1) that quota for all or any quantities to another producer or importer in the Union or to another producer or importer which is represented in the Union by an only representative. It should be noted that only incumbents can make a transfer.

2. Authorisation of quota

Incumbents or to whom a quota has been transferred may authorise another undertaking to use its quota for the purpose of Article 14. As to the new entrants may only authorise another undertaking to use its quota for the purpose of Article 14 provided that the corresponding quantities of HFCs are physically supplied by the authorising producer or importer.

3. Exempted from quota allocation

-Producers or importers of less than 100 t CO₂e of HFCs per year.

-Quota allocation also not applies to the following categories of HFCs:

•  HFCs imported into the Union for destruction;

•   HFCs used or supplied as feedstock;

•   HFCs supplied directly for export out of the Union in bulk;

•   HFCs used in military equipment;

•   HFCs used in the semiconductor manufacturing sector;

•  From 1 January 2018 onwards, HFCs supplied for producing metered dose inhalers.

Registry

Registration in the Registry shall be compulsory for:

1. importers of equipment containing HFCs and

2. all entities supplying or receiving exempted gases

3. all companies who will have to report on F-gas related activities according to Article 19, such as imports of gases or pre-charged equipment, EU production, and export of gases, stocks, destruction, and others.

Reporting obligations on fluorinated gases

Who is affected?

Article 19 of the F-GAS regulation requires that production, import, including gases in equipment, export of bulk gases, feedstock use and destruction of the substances listed in Annex I or II in the regulation are reported annually by 31 March.

Actors	Undertakings	Tonnes	F-gases
Producer Importer Exporter	Produced Imported Exported	≥ 1t/y or ≥ 100 tCO2e	Annex I or Annex II
Each undertakings	Destroyed	≥ 1t/y or ≥ 1000 tCO2e	Annex I or Annex II
Each undertakings	Used as feedstock	≥ 1000 tCO2e	Annex I
Products or equipment undertakings	Placing on the market	≥ 500 tCO2e	Containing f-gases in Annex I or Annex II

Note:

•  Undertakings received quotas from transferring are expected to report by 31 March;

•  Pre-charged equipment undertakings are required to report by 31 March 2018 and every year thereafter.

What has to be reported?

Information which needs to be reported for each F-gas substance includes:

•  the total quantity of each substance produced, imported or exported and identifying the main categories of application in which the substance is used •  specifying quantities placed on the market for exempted uses •  the quantities of each substance recycled, reclaimed and destroyed •  stocks held at the beginning and the end of the reporting period •  any authorization to use quota The format of the report is set out in the Annex of Implementing Regulation (EU) No 1191/2014.

The report must be submitted to the Commission and the authority of the Member State concerned by the Registry, annually by 31 March covering the previous calendar year.

Products or Equipment subject to labelling

The following products and equipment is prohibited to enter the market, unless they are marked with a label that complies with the requirements in Article 11.

Products/ Equipment	Containing or functioning on
Refrigeration products and equipment	HFCs, PFCs
Air conditioning products and equipment	HFCs
Heat pumps	HFCs
Fire protection systems and fire extinguishers	HFCs
Electrical switchgear	SF6
Aerosol dispenser	HFCs
Containers	HFCs, PFCs, SF6
F-gas based solvents	HFCs, PFCs, SF6
Organic Rankine cycles	HFCs

Note: (Refrigeration) and (Air conditioning products and equipment) in motor vehicles are except.

Requirements of the label

To ensure the label is visible and available to installation and service technicians, it shall include following information:

•  Position of the label: Adjacent to service ports or on that part for charging or recovering the f-gases •  Form of the label: clearly legible, suitable font size and remain securely •  Information on the label: A reference that the products or equipment contains f-gases or that its functioning relies upon such gases; Accepted industry designation for f-gases concerned or the chemical name; The quantity expressed in weight and in CO2 equivalent, and the GWP of those gases; Note the hermetically sealed equipment or the tested leakage rate of less than 0.1%. •  Language of the label: in the official languages of the Member State Products or equipment subject to an exemption shall be labeled accordingly and indicating it may only be used for the purpose.

Products and Equipment subject to prohibition

The placing on the market of products and equipment listed in Annex III shall be prohibited from the date specified in that Annex under F-GAS regulation. The following is to provide the prohibitions compared to the origin regulation

Products/ Equipment	Containing	Date of prohibition
Domestic refrigerators and freezers	HFCs, GWP≥150	1 January 2015
Refrigerators and freezers for commercial use (hermetically sealed equipment)	HFCs, GWP≥2500 HFCs, GWP≥150	1 January 2020 1 January 2022
Stationary refrigeration equipment (except designed -50°C)	HFCs, GWP≥2500	1 January 2020
Multipack centralised refrigeration systems for commercial use (≥40 kW)	HFCs, PFCs, SF6 GWP≥150	1 January 2022
Movable room air-conditioning equipment	HFCs, PFCs, SF6 GWP≥750	1 January 2020
Single split air-conditioning systems (<3kg f-gases)	HFCs, PFCs, SF6 GWP≥750	1 January 2025
Foams, Extruded polystyrene (XPS) Other foams	HFCs, GWP≥150	1 January 2020 1 January 2023
Technical aerosols	HFCs, GWP≥150	1 January 2018

With an exceptionally indicated in Article 11(3), the undertakings may access to be authorised an exemption for up to four years to allow the placing on the market of these prohibitions.

Our Services

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•  Adoption of the Only Representative and user account management

•  Provide F-GAS regulation compliance strategies

•  Submit registration and quota declaration in the Registry

•  Prepare verification report and Reporting in the Registry

•  Deal with the F-GAS team with specific information

•  Communicate and negotiate with quota holder for authorisation