Achieving the HFC Phase-Down in Europe EPEE Gapometer: Achieving the HFC Phase-Down in Europe October 2017

Who is EPEE? Small – medium – large size companies Over 200,000 direct employees, over €30bn turnover Production throughout Europe Main Activities: Promote Energy Efficiency Ensure responsible refrigerant management Raise awareness on market surveillance Use of all types of refrigerants

A short reminder: The EU F-Gas Regulation 2050 EU Low Carbon Roadmap Containment & Competence Regular leak checks Certification and training of installers Phase-Down Consumption Reduction of HFCs Y 2020: -37% Y 2030: -79% GWP Limits 2015: GWP 150 Fridges & Freezers 2020: GWP 150 Moveable A/C 2020: GWP 2500 New Stat. Refr. Equipment & service, maintenance 2022: GWP 150 Multipack refrigeration systems >40kW (except cascades: GWP1500) 2025: GWP 750 Single split a/c < 3kg Others 2015: Reporting obligations 2017: Traceability for pre-charged equipment 2015 – 2022: various reports

Der EU HFKW Phase-Down The biggest challenge An additional 22 MT CO2 (12%) for precharged equipment expected 2018: - 44% ! 2021: - 60% !

The Epee gapometer

EPEE GAPOMETER Roadmap for meeting EU HFC phase-down steps Monitor progress towards meeting the targets

EPEE GAPOMETER - Project Objectives to develop a Roadmap for meeting EU HFC phase down steps with in-depth understanding of contributions to HFC cuts by market sector and sub-sector by core action to monitor progress towards meeting the targets by collecting market intelligence data to identify any gaps between Roadmap and actual activity emphasis is on: understanding the challenging cuts in 2018 and 2021

How to achieve the phase-down? Priorities of the EPEE Gapometer Roadmap 1. Actions for new equipment use lower GWP alternatives design for less refrigerant charge and low leakage New equipment 2. Actions for existing equipment leak prevention retrofit with low GWP alternatives Existing equipment 3. Use of reclaimed refrigerant recovered from equipment at end-of-life recovered during retrofit of existing equipment Reclaimed refrigerant

Contributions from core actions Reduction in MT CO2 New equipment -36 -64 Existing equipment -30 -39 -24 -20 Reclaimed refrigerant

Contributions per market segment Reduction in MT CO2 -47 -15 -12 -51 -20 -14 Chiller Transport Commercial refrigeration Industrial ref. A/C Mobile A/C Others

Gapometer Market Survey Roadmap and reality: Refrigerants in new equipment Supermarkets and their company policies Reclaim & recycling of refrigerants

Refrigerants in new equipment Example: stationary a/c equipment In line with the roadmap Significant gap compared to roadmap Good progress, but difficulties for larger equipment >3kg

Refrigerants in existing equipment Example: Supermarkets & their company policies retrofits of R-404A systems helps “kick-start” HFC cuts R-404A: GWP 3922 slower start to retrofits than assumed in Roadmap but lots of trials being carried out reasonable plans for actions in 2017 to 2020 early retrofits R-407A (GWP 2107) and R-407F (GWP 1825) recent shift to R-448A and R-449A (GWP 1400) good results for ‘quick retrofits’ retrofits of R-404A much easier than for R-22 Leakage reduction: In line with Roadmap: But are the results only from good performers? Retrofit strategies: Slower start than required More needs to be done!

Reclaim and Recycling of refrigerants Sources: From equipment reaching end-of-life From equipment being retrofitted Reclaim of refrigerant can make a successful contribution to the phase-down as it does not fall under the quota

Key messages

At a glance Roadmap shows priorities Major risks if no action 44% and 60% reduction required 2018 & 2021: Biggest challenge Refrigerants with lower GWP in new equipment Leakage reduction in existing equipment R404A retrofits Re-use of refrigerants Roadmap shows priorities Refrigerant prices could jump by factor >20 Some high GWP refrigerants could become unavailable Quality of installation could suffer if rapid action needed „Good“ EU countries still exposed to any shortages Major risks if no action

Depending on market segment Main influencers Depending on market segment OEMs & designers Serial production A/C units Plug-in refrigeration Transport End users & contractors New & existing equipment Commercial refrigeration Industrial refrigeration Contractors & supply chain Infrastructure for re-use

Reclaimed refrigerant Need for action End-users and OEMs must be encouraged to use lower GWP options Lower GWP refrigerants are already available but uptake is slower than expected More flammable refrigerants: Training and development of safety standards are urgent priorities Advisors / contractors: They play an important role and must understand the need for lower GWP options and altrnative configurations Leakage reduction and R-404A retrofits Good progress by „best practice supermarkets“ but much more needs to be done as a matter of urgency Need of action also in industrial refrigeration, which is well behind supermarkets R-404A retrofits with GWP ~1400 possible: Maximising recovery and re-use of retrofitted R-404A is key to meet phase-down targets Reclaim of refrigerant makes an important contribution to HFC phase-down as they are not part of quota Higher refrigrant prices and shortages of high GWP HFCs will encourage reclaim Contractors and end-users need to maximise recovery Gas supply chain must provide supporting infrastructure: easy access to recovery cylinders, easier transport of „waste gas“, facilities for reclaim of mixed and unmixed refrigrant New equipment Existing equipment Reclaimed refrigerant

Outlook for 2018 44% cut from baseline starts in 6 months time! Gapometer Roadmap shows how the cut can be achieved but it relies on many actions by many different actors Market research shows significant progress but not enough activity yet recent significant price increases may accelerate action Without a significant increase in the uptake of the core actions in 2017 and early 2018 there could be a severe shortage of some HFC refrigerants in 2018

conclusions

The phase-down is feasible: But it won‘t be a walk in the park Conclusions The phase-down is feasible: But it won‘t be a walk in the park

We must get the balance right Energy Efficiency must not be sacrificied to low GWP

Indispensable: Training We need all solutions Indispensable: Training

Open: for new situations and solutions We have to be flexible Open: for new situations and solutions

Thank you for your attention – Questions? Contact: EPEE 46 Avenue des Arts 1000 Brussels, Belgium a.voigt@epeeglobal.org www.epeeglobal.org @EPEESecretariat @AndreaVoigt2305