The new EU F-Gas Rules and their impact in Europe and globally By Andrea Voigt, EPEE Workshop on Hydrofluorocarbon Management Bangkok – 20 & 21 April 2015

Why a Phase-Down in Europe? Not refrigerant specific: Based on CO2-equivalent Technology neutral Accelerates move towards lower GWP refrigerants Encourages containment & end- of-life recovery Promotes recycling Fosters innovation and competitiveness yet helps to reach environmental objectives Photo: BSRIA

New F-Gas Rules in Europe: Ambitious – Yet Feasible 1.Industry generally welcomes the new rules – Provide regulatory certainty and security for investments – Drive innovation and investments in new technologies 2.Industry supports the phase-down principle – Maintains flexibility and freedom of refrigerant choice 3.Industry deplores a general lack of focus on energy efficiency – Life Cycle Climate Performance assessment should have received more attention 4.Barriers to the uptake of lower GWP refrigerants need to be urgently tackled. – Standards, building codes, training

How Industry Assessed Feasibility: The Importance of Solid Data* 1.Market Segmentation – 7 main sectors ; 43 sub-sectors. 2.Assessment of each sub-sector – Market size, market growth rate, refrigerant charge, leakage rates, energy efficiency and capital cost. – Evaluation of alternative refrigerants: energy efficiency, capital, operating costs and any potential barriers to use (e.g. safety legislation). 3.Modelling of different scenarios – Assumption of refrigerant mix between now and – Phase-down scenarios assessed vs. Business-As-Usual – Assessment of economic impact in €/to of CO2 SKM Enviros, Ray Gluckman et al. 2012, Phase-down of HFC consumption in the EU

Assessment of the Economic Impact Estimated average abatement cost of the EU phase-down €25 per tonne of CO2 saved* * Highest Impact Scenario (widespread use of A2L refrigerants) Source: SKM Enviros (Ray Gluckman et al., 2012)

3 Top Priorities = 75% of Consumption* Commercial Refrigeration R-404A 40% of consumption Stationary A/C & Heat Pumps R-410A, R-407C, (R-22) 15% of consumption Mobile A/C R-134a 20% of consumption First Target in EU Various solutions available Will achieve 50% of EU emission reduction goal Major challenge High growth rate expected Move towards (mildly) flammable refrigerants Standards, Building codes, workforce need adaptation Has already started EU MAC Directive drives move towards GWP<150 *Source SKM Enviros, Ray Gluckman et al. 2012: Consumption in CO2-eq. In 2010

Expected Global Impact Imports into the EU need to comply with EU F-gas rules and HFC phase-down in the EU Short-term move away from very high GWP refrigerants such as R-404A and R-507 Uptake of lower GWP refrigerants Increased use of mildly flammable and flammable refrigerants Adaptation of standards and building codes Training of the workforce Containment, end-of-life recovery and recycling

Conclusion The EU F-Gas rules will contribute to change on a global level. Also imports need to comply. Policy decisions need to be based on solid data. There is no one-size-fits-all solution: Global action needs to leave room for growth to ensure energy efficient, safe, affordable and innovative solutions. The framework conditions (standards – codes – training of the workforce) require adaptation Industry has solutions, experience and a solid track record

Join us at our side-event on Thursday to discuss global action on HFCs! Contact details: EPEE 46 Avenue des Arts 1000 Brussels, Belgium Web: Linkedin: EPEE Secretariat 9 Thank you for your attention!