EU F-Gases Proposal EU-Korea Seminar Seoul, 7-9 November 2005 Peter Horrocks DG Environment

Why a Proposal? EU (15) emissions of F-Gases about 65 MTCO2 eq in 1995 (2% of total EU emissions) 98 MTCO2 eq in 2010 (2-4% total EU (15) emissions) Increase explained by phase-out of ozone depleting substances Refrigeration/air conditioning including mobile A/C in cars and heat pumps key sectors

Main Elements Containment and recovery measures Training and Certification Data reporting requirements Marketing and use restrictions Prohibition on HFCs > 150 GWP in Mobile Air Conditioning in motor vehicles

Legislative Process – To date 2002/2003 Preparatory Process in European Climate Change Programme Commission Proposal on F-Gases (COM (2003) 492 final) of 11.08.2003 Parliament’s First Reading – 31.03.2004 Political Agreement - 14.10.2004 Common Position - 21.06.2005 Commission Communication on Common Position 01.07.2005 (COM (2005) 296 final

Common Position 21 June 2005 One proposal but two elements Regulation for containment and recovery, use bans and prohibitions Directive for phase out of HFCs > 150 GWP in mobile air conditioning systems in motor vehicles

Legal Base of Regulation Commission proposal based on Article 95 – Internal Market Directive on MACs – Article 95 Common Position provides for a dual Legal base Containment, Recovery, Certification and Labelling under Article 175 Use bans and prohibitions under Article 95 (Articles 7, 8 and 9)

Scope Common Position covers: Fluorinated greenhouse gases in Kyoto Protocol Applies to fluorinated gases listed in Annex I together with respective GWPs GWPs base on third assessment of IPCC Annex I can be reviewed and updated in the light revisions under Kyoto Protocol (Article5(3)) Preparations containing fluorinated greenhouse gases with a GWP< 150 not covered by provisions of the Regulation

Containment Applies to stationary applications in Article 3 Obligation to minimise leakages and repair as soon as possible Frequency of inspection schedule Inspection by certified personnel Leakage detectors defined Operator defined, owner can be responsible for operator’s role Inspection for leakage defined Maintenance of records on inspections and servicing companies and personnel Commission to define standard inspection requirements in Committee

Inspection Schedule Stationary Applications Quantity of Fluorinated gases Frequency of Inspections per annum 3 kg or more and 6 kg if hermetically sealed One 30 kg or more Two 300 kg or more Four 30 kg and 300 kg with leakage detector Halving of inspections

Recovery Recovery an obligation for operators by certified personnel e.g. stationary equipment Stationary equipment includes refrigeration, air- conditioning equipment, fire protection systems, equipment containing F-Gases solvents and high voltage switchgear Recovery obligatory from refillable and non-refillable containers at end of life Recovery in other products and equipment if technically possible and not disproportionate cost (e.g. foams, mobile air conditioning and refrigeration equipment except if serving military operations and mobile air conditioning) Recovery to take place before final disposal or during servicing and maintenance

Training and Certification Commission to establish minimum requirements and mutual recognition Member States to establish or adjust their programmes to comply and notify Commission Commission to establish notification format Training and certification covers relevant personnel and companies and their relevant personnel Operators have an obligation to ensure personnel used are trained and certified Only certified personnel to take delivery of fluorinated ghg

Labelling New Article on labelling certain products and equipment containing fluorinated greenhouse gases – chemical name, using accepted industry nomenclature and indication it contains fluorinated greenhouse gases Applies, inter alia, to refrigeration equipment including mobile refrigeration equipment Commission with the committee shall establish the form of the label Aim is to assist personnel dealing with the applications

Review Review of refrigeration systems in modes of transport and air conditioning systems other than those in motor vehicles Assess effectiveness of containment measures and see if maximum leakage rates possible Evaluate training and certification programmes in MS Review reporting requirements Assess need for European standards for controlling emissions of fluorinated ghg Evaluate effectiveness of containment measures State of technology review and best available techniques and environmental practices Review of SF6 uses and possible revision of provisions in Regulation Assess whether other products and equipment can be included in Annex II - prohibitions

Data Reporting Data reported to Commission Production Imports Exports Uses Emissions

Use Restrictions SF6 for filling vehicle tyres from date of entry into force SF6 in magnesium die-casting except < 850 kg a year from 1 January 2008

Marketing Restrictions F-Gases in non-refillable containers –date of entry into force HFCs and PFCs direct evaporation - self chilling drinks cans – entry into force F-Gases Tyres –date of entry into force PFCs fire protection systems and fire extinguishers F-Gases windows/domestic – date of entry into force F-Gases other windows -2 years after entry into force F-Gases footwear – date of entry into force F-Gases one-component foams –date of entry into force HFCs novelty aerosols -2 years after entry into force

Committee Commission to be assisted by Committee instituted by Article 18 of Regulation (EC) No 2037/2000 – Ozone Layer Regulation Regulatory Procedure

Commission Position on Common Position Regulation Many of the Parliament’s amendments that have been included in the Common Position improve transparency and clarity Commission supported the dual legal base Supports the Council in rejecting Parliament’s proposals to change dual legal base to sole legal base of Article 175 and further prohibitions In general the Commission supports the Council’s Common Position

Issues Relevant to MACs Legal Base Harmonised leakage detection tests Start and end of phase out Coverage – HFC 152a Review Entry into force

Political Agreement – Directive MACs Legal base remains Article 95 –internal market Within 12 months of date of adoption of harmonised leakage detection test or 1.01.2007 no type approval for MACs with HFCs having a GWP>150 unless leakage rate is <40 grams per annum for single and <50 grams for dual evaporator systems. This applies to new vehicles from 24 months of date of adoption of harmonised leakage detection test or 1.01.2008 The system is based on type approval, no quota system No type approval for MACs with HFCs having a GWP>150 from 1.01.2011 and 1.01.2017 for new vehicles MACs using HFCs with a GWP < 150 allowed Review five years after entry into force, possible application to commercial vehicles and buses

Commission Position on Common Position Directive Many of the Parliament’s amendments that have been included in the Common Position improve transparency and clarity Neither the Council or Parliament supported the quota system but since environmental ambition maintained can accept type approval procedure Supports the Council in rejecting Parliament’s proposal to reduce GWP of HFCs in MACs from 150 to 50 since it would exclude HFC 152a In general the Commission supports the Council’s Common Position

Type approval system in the EU started in 1970 with the Council Directive 70/156/EEC on the approximation of the laws of the Member States relating to the type-approval of motor vehicles and their trailers See: http://europa.eu.int/comm/enterprise/automotive/directives/vehicles/index_map.htm Tell that the EU has a long tradition of regulating vehicles with a system based on the approval of the types of vehicles. The details of this system can be found in the web-site. The main point is that all car manufacturers in the world know the EU type approval system and use it to get the approval of the authorities to sell cars in the EU.

Commission Communication on Common Position Many of the Parliament’s amendments that have been included in the Common Position improve transparency and clarity Neither the Council or Parliament supported the quota system but since environmental ambition maintained can accept type approval procedure Supports the Council in rejecting Parliament’s proposal to reduce GWP of HFCs in MACs from 150 to 50 since it would exclude HFC 152a In general the Commission supports the Council’s common position

Second Reading Proposed EP Amendments - Regulation Article 175 as legal base Add term « circuits » to equipment Introduces term « control of use » instead of inspection Improved definition of hermetically sealed systems Training and certification requirements to cover installation and servicing Clarification of terms « companies and their relevant personnel Registration number for each stationary application Review of records of inspections every 2 years by competent authorities Labelling to include global warming potential

Second Reading Proposed EP Amendments - Regulation In evaluation of containment in review take into account representative data from operator records in Member States Bans placing on market domestic refrigeration systems containing HFCs with less than 150 grams four years after entry into force Bans placing on the market of commercial and industrial refrigeration with HFCs from 1.01.2010 Bans placing on the market of air-conditioning equipment with HFCs from 1.01.2010 Bans use of fluorinated gases where safe, technically feasible and cost-effective alternatives available

Second Reading Results Parliament adopts 26 amendments on Regulation most technical amendments Rejects amendments for a sole legal base of Article 175 Rejects Bans for additional products Article allowing MS to take individual measures Adopts Common Position on Directive apart from one amendment on fiscal incentives

Next Steps on F-Gas Proposal Conciliation may not be necessary to finalise agreement by end 2005 (UK Presidency) if agreement can be reached on basis of Common Position and EP amendments Regulation entry into force one year after approval - end 2006 then 1 January 2007 Directive entry into force two years after approval - end 2006 then 1 January 2008

Deciding on the F-gas Regulation 2nd reading = Common Position? European Parliament 1st reading 2nd reading European Commission proposal 2nd reading = Common Position? Common position Council (Member States) no Council and Parliament negotiate through „Conciliation“ procedure Note: It is possible to agree already during “1st reading“ yes Law

Responsibilities of Commission and Member States Timetable for Implementation of Regulation Assuming entry into force – 1 January 2007 Date Responsibilities of Commission and Member States 1 January 2007 Commission to establish standard inspection requirements for refrigeration, air conditioning, heat pumps and fire fighting systems (Article 3) Commission to establish minimum requirements and mutual recognition for training programmes and certification for personnel in refrigeration, air conditioning, heat pumps and fire fighting sectors (Article 5) Commission to establish format of notification (Article 5) 1 January 2008 Member States adapt training and certification requirements to meet minimum requirements- notify Commission (Article 5) Member States to ensure companies involved in containment and recovery use qualified personnel for delivery of fluorinated greenhouse gases (Article 5) Mid- 2007 Format for Reporting provisions (Article 6) Commission to establish form of label (Article 7) 1 January 2011 Review by Commission – evaluate training and certification, containment measures (assess need for maximum leakage rates), technology developments and prohibitions in Annex II (Article 9)

Estimated Effects Applies to 25 Member States – 450 million people Emission reduction around 21 Mtonnes of CO2 eq by 2012 15 Mtonnes of Co2 eq: containment 6 Mtonnes of CO2 eq: prohibitions and use bans 2020 around 40-50 Mtonnes of CO2 eq per annum with full benefits of phase out of HFC 134a in MACs

Implications for Third Countries Auto industry important growth pole in countries such as Korea Need to build cars to meet world wide standards - develop exports and overseas facilities– as well as expanding domestic markets The MAC standard in the future is going to move away from HFC 134a (climate change concerns) EU market will switch away by the end of this decade probably followed by other countries In this context, Governments and vehicle makers in car producing countries need to make strategic decision on future path for their auto industries The Regulation will have some impact on certain products banned from being placed on the EU market from third countries Blueprint for further action on fluorinated greenhouse gases0

Conclusions Contributes to meeting Kyoto objectives Final content still to be determined Commission objective is to ensure that environmental ambition of its proposal maintained First step in regulating emissions of fluorinated greenhouse gases Focus on containment and recovery – relevant sectors have to ensure that this works

Further Information Commission Communication 2001 http://europa.eu.int/eur-lex/en/com/pdf/2001/com2001_0580en01.pdf Report of working group http://europa.eu.int/comm/enterprise/chemicals/sustdev/fluorgases/gas1.pdf Climate Change Unit web-site http://europa.eu.int/comm/environment/climat/home_en.htm Contact peter.horrocks@cec.eu.int