Register and apply for HFC quotas by July 1

BRUSSELS: Companies intending to market HFC refrigerants in the EU in 2015 must register and submit their applications for a quota by July 1.

Under the new F-gas regulation 517/2014, which comes into force on January 1, 2015, companies will be allocated quotas that limit future sales of these gases.  This is the first step in preparing a phase-down of HFCs in the EU, which is a major part of the new F-gas regulation.

The regulation introduces a phase-down mechanism involving a gradually declining cap on the total placement of bulk HFCs (in tonnes of CO2 equivalent) on the market in the EU with a freeze in 2015, followed by a first reduction in 2016-2017 and reaching 21% of the levels sold in 2009-12 by 2030.

Registration is required both for companies that have legally reported production or imports in the period 2009-2012 as well as so-called new entrants to the market – companies that have not previously done so.

Reporting companies will be given reference values based on their historic data. New entrants will have to declare their need for quota to the European Commission, which will allocate quotas on a pro rata basis until no more quotas are available.

Under Article 19 of the regulation, production, import, including gases in equipment, export, feedstock use and destruction of the substances listed in Annexes I or II in the Regulation are reported annually before 31 March, for the previous calendar year.

The companies affected include producers, importers or exporters that produced, imported or exported 1 tonne or 100 tonnes of CO₂e or more of HFCs, including companies (producers or importers) to which quotas have been transferred; companies that destroyed 1 tonne or 1,000 tonnes of CO₂e or more of HFCs; companies that used 1,000 tonnes of CO₂e of fluorinated greenhouse gases as feedstock; companies that placed 500 tonnes of CO₂e of HFCs contained in products or equipment on the market; companies that placed on the market pre-charged refrigeration, air conditioning and heat pump equipment where HFCs contained in this equipment have not previously been placed on the EU market.

Further information and forms here.

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