Compliance Market

Understanding Fluorinated Greenhouse Gases (F-Gases) and Their Environmental Impact

Applications of F-Gases and Regulatory Compliance

Fluorinated greenhouse gases (F-gases) are a group of potent chemical compounds containing fluorine. These gases have a significant impact on the environment as they contribute to global warming by trapping heat in the atmosphere.

Common Uses of F-Gases

F-gases find extensive application in various industries, including refrigeration and air-conditioning equipment, aerosols, solvents, foam blowing agents, firefighting fluids, high-voltage switchgear, and medical equipment, such as inhalers and scanners.

If your business is involved in manufacturing, supplying, using, installing, or servicing equipment containing F-gases, or if you produce or provide F-gases, it is essential to comply with stringent regulations aimed at limiting F-gas discharges. These regulations include a quota system designed to reduce F-gas availability in Europe and the UK by the year 2030.

In order to manage emissions from F-gases, which include hydrofluorocarbons (HFCs), the European Union has put into effect two legislative acts: the F-Gas Regulation and the MAC (Mobile Air Conditioning systems) Directive. The European Environment Agency (EEA) plays a crucial role by gathering data reported by companies on the production, import, export, destruction, and use of F-gases in the EU. This valuable data is published annually in the Fluorinated greenhouse gases report, aiding in monitoring and understanding the impact of these gases on the environment.

Regulation (EU) n° 517/2014 of the European Parliament and of the Council of 16 April 2014

These “F-Gases” have a significant impact on the environment, prompting the EU to take action by planning to reduce their usage by 79% by the year 2030. To achieve this goal, a Quota System was introduced, commencing on January 1, 2015, with periodic “step-down” reductions every three years.

How does it work?

As the EU website declares: “Prior to carrying out any activities that fall under Regulation (EU) 517/2014EN (the ‘F-Gas Regulation’), all must register in the F-gas Portal & HFC licensing system.

This is mandatory for companies to receive a quota, for importers of equipment containing HFCs, and for all entities supplying or receiving exempted gases such as those hydrofluorocarbons (HFCs) imported for destruction, for use as feedstock, directly exported in bulk, as well as for use in military equipment, in semiconductor manufacture or for metered dose inhalers (MDIs).”

Regulations

In 2006, the EU took a step to combat climate change by implementing the first F-Gas Regulation, known as Regulation (EC) 842/2006, which initially targeted specific industries within the sector. This served as a preparatory measure for the subsequent second F-Gas Regulation, which aimed to aggressively tackle the environmental issues associated with hydrofluorocarbons (HFCs).

Regulation (EU) 517/2014 was introduced in late 2014 to establish guidelines for the introduction of Greenhouse Fluorinated Gas (HFC) products into the EU Market.

Allocation of quota: Quotas are needed for the import and production of bulk HFCs

Quotas are allocated based on a company-specific reference value (determined every 3 years) and/or on an annual declaration of (additional) anticipated needs from a quota reserve. As an F-gas quota holder, you have the ability to manage your fluorinated gas (F-gas) quota to:

Authorisation of quota

Authorise another company to use some or all of your quota to import or manufacture pre-charged equipment.

Transfer of quota

Transfer some of your quota to another producer or importer of bulk hydrofluorocarbons (HFCs) – the most common type of F-gas. The transfer of F-gas quota refers to the process of reallocating or moving the assigned F-gas quota from one entity to another within the context of the F-Gas Regulation. This transfer allows F-gas quota holders to buy or sell their allocated F-gas allowances based on their needs, business requirements, or market dynamics.

Delegate of quota

Delegate quota authorizations to a third party. The delegation of F-gas quota assigns the responsibility and rights to manage a portion of allocated F-gas quota from one entity to another. In this context, the original quota holder (delegator) entrusts a third party (delegate) with the authority to use and manage a specific amount of F-gas quota on their behalf.

To learn more about Compliance Market