Proposal for a Regulation of the European Parliament and of the Council on certain fluorinated greenhouse gases
Date: 2003-08-11
Institutions: European Commission
Subjects: EU environmental policy, approximation of laws, clean technology, climatology, deposit on a polluting product, economic consequence, greenhouse gas, market approval, motor vehicle industry, reduction of gas emissions

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 11.8.2003
COM(2003) 492 final

2003/0189 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on certain fluorinated greenhouse gases

.

(presented by the Commission)

1.

INTRODUCTION

This proposal for a new EC Regulation on fluorinated gases is a key element of the first phase
of the European Climate Change Programme.  It will put in place a legislative framework to
reduce  emissions  of  hydrofluorocarbons  (HFCs),  perfluorocarbons  (PFCs)  and  sulphur
hexafluoride,  which  are  powerful  greenhouse  gases  covered  by  the  Kyoto  Protocol.  The
proposal  includes  provisions  on  the  containment,  reporting  and  marketing  and  use  of
fluorinated gases.

2.

THE PROBLEM TO BE ADDRESSED

2.1.

International response to climate change

Action to reduce emissions of fluorinated gases needs to be considered in the context of wider
efforts  being  taken  to  combat  climate  change.  Climate  change  is  recognised  as  one  of  the
greatest  environmental  and  economic  challenges  facing  humanity.  The  international
community  initially  responded  to  this  threat  by  adopting  in  1992  the  United  Nations
Framework  Convention  on  Climate  Change,  which  has  the  ultimate  objective  to  achieve
stabilisation  of  greenhouse  gas  concentrations  in  the  atmosphere  at  a  level  which  prevents
dangerous  anthropogenic  interference  with  the  climate  system.  This  was  followed  by  the
adoption of the Kyoto Protocol in 1997, which requires industrialised countries to reduce their
collective emissions of greenhouse gases by 5.2% below their 1990 levels for the period 2008
to 2012 (the first commitment period).

2.2.

European Community’s response to climate change

Tackling climate change is a key priority in the Sixth Environment Action Programme of the
European  Community  (2001-2010)1,  which  emphasises  that  this  will  be  an  outstanding
challenge  for  the  next  10  years  and  beyond.  Under  the  Kyoto  Protocol  the  European
Community is committed to reduce its emissions by 8% within the first commitment period:
an overall reduction of 336 million tonnes of carbon dioxide equivalent.

At  the  European  Council  in  Gothenburg  in  June  2001,  Heads  of  State  and  Government
stressed  that  combating  climate  change  is  a  major  priority  of  the  European  Union’s
Sustainable Development Strategy, and reaffirmed their strong commitment to meet the target
under the Kyoto Protocol. The European Community and the Member States have all ratified
the Kyoto Protocol2.

1

2

Decision No 1600/2002/EC of the European Parliament and of the Council of 22 July 2002 laying down
the Sixth Community Environment Action Programme, OJ L 242 of 10/9/2002.
The  EU  ratified  the  Kyoto  Protocol  pursuant  to  Council  Decision  of  25  April  2002  concerning  the
approval on behalf of the European Community of  the  Kyoto  Protocol  to  the  UNFCCC  and  the  joint
fulfilment  thereunder,  (OJ  15  May  2002,  L130,  page  1).  The  EC  and  its  Member  States  ratified  the
Kyoto Protocol on 31 May 2002.

2

                                                
2.3.

European Climate Change Programme

The European Climate Change Programme (ECCP) was established in June 2000 to identify
additional cost-effective measures that could be taken to enable the European Community to
meet  its  Kyoto  Protocol  target.  The  ECCP  was  a  multi-stakeholder  consultative  process
comprising sectoral working groups, including a working group on fluorinated gases.

The  report  on  the  first  phase  of  the  ECCP3  of  June  2001  summarised  the  outcomes  and
conclusions of the working groups.  In total, 42 cost-effective options were identified  with a
potential to reduce total greenhouse gas emissions by 664–765 million tonnes carbon dioxide
equivalent.

Fluorinated Gases Working Group

The  working  group 
industrial  sectors,
environmental  non-governmental  organisations  and  Member  States.  The  notes  of  meetings
and the reports of the working group were made available to a wider audience.

from  all  relevant 

representatives 

included 

The report of the working group of June 20014 stated that fluorinated gas emissions in 1995
were  around  65  million  tonnes  of  carbon  dioxide  equivalent  or  2%  of  total  greenhouse  gas
emissions in the European Community. The main uses of HFCs are as refrigerants, cleaning
solvents  and  foam  blowing  agents.  PFCs  are  used  in  semi-conductor  manufacture  and  as
cleaning  solvents,  and  SF6  is  used  in  high-voltage  switch  gear  and  magnesium  production.
Assuming no additional measures were taken, emissions were forecast to increase to around
98  million  tonnes  of  carbon  dioxide  equivalent  by  2010,  representing  2  to  4%  of  total
projected greenhouse gas emissions.

The  working  group  made  a  number  of  recommendations  for  action  to  reduce  emissions  of
fluorinated gases, and there was a strong consensus amongst the stakeholders for a legislative
framework at the Community level to improve the containment and monitoring of fluorinated
gases, and to introduce marketing and use restrictions for certain applications.

The first phase of the European Climate Change Programme

The Commission’s Communication “on the implementation of the first phase of the European
Climate Change Programme” of October 20015, proposed a package of 12 priority measures
to  be  brought  forward  in  2002  and  2003,  including  a  proposal  for  legislative  action  on
fluorinated gases.

The Environment Council on 12 December 2001 welcomed the intention of the Commission,
to make a proposal for a framework directive on fluorinated gases, including containment of
emissions from stationary and mobile sources, monitoring of quantities of  fluorinated gases
being placed on the market as well as marketing and use restrictions, where appropriate, for
relevant  applications  where  viable  alternatives  are  available  and  if  improvement  of
containment  if  not  feasible,  taking  into  account  existing  voluntary  initiatives  by  some
fluorinated gases industry sectors, where the development of alternatives is still ongoing.

3

4

5

European Climate Change Programme Report, June 2001
http://europa.eu.int/comm/environment/climat/eccp_longreport_0106.pdf
Fluorinated Gases Working Group Report
http://europa.eu.int/comm/enterprise/chemicals/sustdev/fluorgases/gas1.pdf
COM(2001) 580 final.

3

                                                
The European Parliament on 25 September 2002 also welcomed the Commission's intention
to make a proposal for a framework directive on fluorinated gases. It considered the expected
reductions  in  emissions  of  fluorinated  gases  and  improved  monitoring  were  measures  that
were cost-effective and that would deliver environmental benefits. Furthermore it considered
it  important  that  all  areas  of  application  are  covered  by  the  proposal  and  that  work  on  the
ozone  layer  target  and  the  climate  target  should  be  co-ordinated  in  the  European
Community’s  work  on  the  environment  in  regard  to  the  refrigeration  and  air-conditioning
sectors and as an aid to new technology.

Concurrently with the ECCP process, the Environment Council of 10 October 2000 asked the
Commission  to  “study  and  prepare  measures  in  reduction  of  all  greenhouse  gas  emissions
from  air  conditioning  in  vehicles”.  Studies  were  undertaken  to  establish  refrigerant  leakage
rates from car air-conditioning systems and to assess the impact on fuel consumption up until
2010 and beyond. The Commission also launched a stakeholder consultation process, which
culminated on 10 and 11 February, 2003 in a “Conference on Options to Reduce Greenhouse
Gas Emissions from Mobile Air Conditioners”, where 150 participants from industry, public
sector, non-governmental organisations, Member States, most accession countries, as well as
the  US,  Japan  and  Australia  discussed  the  options  for  mitigating  greenhouse  gas  emissions
from  mobile  air-conditioning.  The  stakeholder  consultation  ended  on  11  March  2003.  As  a
result of the studies and stakeholder consultation it became evident that the leakage of HFC-
134a  is  about  40%  higher  than  estimated  by  the  ECCP  working  group.  Also  this  process
provided ample evidence about the cost-effectiveness of phasing out the HFC-134a in vehicle
air-conditioning  systems.  Thus,  the  Commission  has  concluded  that  –  given  that  technical
progress  is  likely  to  further  reduce  the  costs  of  air  conditioning  based  on  alternative
refrigerants  –  a  gradual  flexible  system  to  phase-out  the  refrigerant  is  the  most  desirable
policy response. This conclusion is further emphasised in the agreement between the Council
and  the  Parliament  as  part  of  the  directive  on  EU-wide  trading  on  greenhouse  gases,  which
calls for the Commission to particularly consider measures at Community level in order that
the transport sector makes a substantial contribution to meeting the Kyoto target.

3.

THE OBJECTIVES AND APPROACH OF THE PROPOSAL

3.1.

Overall policy objective

The  overall  objectives  of  the  proposal  are  to  make  a  significant  contribution  towards  the
European  Community’s  Kyoto  Protocol  target  by  introducing  cost-effective  mitigation
measures,  and  to  prevent  distortion  of  the  internal  market  that  could  result  from  differing
national  measures  in  place  or  being  planned.  The  focus  is  on  the  protection  of  the  internal
market through the harmonisation and improvement of requirements on the containment and
reporting of fluorinated gases. This implies harmonised restrictions on the marketing and the
use of fluorinated  gases in applications where the containment of fluorinated  gases is  either
difficult to achieve or the use of the fluorinated gases is considered inappropriate and suitable
alternatives exist. The proposal is expected to reduce projected emissions of fluorinated gases
by  around  23  million  tonnes  of  carbon  dioxide  equivalent  by  2010,  and  even  greater
reductions in the period after as some provisions will not have a significant impact until then.

3.2.

The approach to reach the objectives

The Commission has given careful consideration to the most appropriate policy instrument for
the  proposed  measures  on  fluorinated  gases,  and  in  doing  so  took  into  account  the  views
expressed by the working group and other stakeholders.

4

The Commission considers that the legislative framework needs to be:

(cid:1)  comprehensive - to ensure that consistent provisions apply  across the Community for the
relevant  fluorinated  gases  in  key  sectors,  taking  into  account  the  voluntary  actions  taken
for  example  by  the  semiconductor,  switchgear  and  foam  industry,  and  the  impact  of
existing  legislation  such  as  Council  Directive  96/61/EC  on  sectors  such  as  aluminium
production. This is important as some Member States have introduced national legislation
on  fluorinated  gases  which,  based  on  preliminary  analysis,  may  be  disproportionate  in
nature and have a negative impact on the internal market.

(cid:1)  flexible - to reflect the different national circumstances of Member States; the differences

between sectors and applications and the links with other policy areas

(cid:1)  adaptable  -  to  allow  areas  where  knowledge  is  currently  not  strong  to  be  addressed  at  a

later stage as appropriate

The Commission believes that these requirements are best met through a new EC Regulation.
This approach is in line with the general aims of the White Paper on European Governance6
by  proposing  a  legislative  instrument  that  provides  the  balance  between  the  need  for  a
uniform approach and the need for flexibility in how certain provisions are implemented on
the ground. For example, the requirement to recover fluorinated gases from equipment at the
end  of  life  for  recycling  or  destruction  should  apply  to  all  such  applications  across  the
Community. On the other hand, designing  the training  and certification programmes for  the
persons involved in such activities is for the Member States to determine in the light of their
own national circumstances.

A new EC Regulation will ensure that a consistent set of containment provisions is applied to
the key sectors where both fluorinated gases and ozone depleting substances are used. Many
of the industrial sectors and enterprises affected by the proposal are also subject to Regulation
(EC)  2037/2000,  which  introduced  similar  containment  provisions  for  ozone  depleting
substances.  It  would  be  appropriate  to  ensure  that  the  approach  enables  Member  States  to
build on the existing frameworks and minimise impacts on the internal market.

The link with Regulation (EC) 2037/2000 is  very  important. At  the  international level  there
are  growing  links  between  the  Montreal  and  Kyoto  Protocols  at  both  the  scientific  and  the
policy  level.  For  example,  the  1999  report  of  the  HFC  and  PFC  Task  force  of  the  UNEP
Technology and Economic Assessment Panel7 noted that HFCs, and to a lesser extent PFCs,
are  needed  to  replace  ozone  depleting  substances  in  some  applications.  This  is  particularly
important in the European Community, where the phase-out of the use of CFCs, HCFCs and
other  ozone  depleting  substances  foresees  a  transition  to  fluorinated  gases  in  some
applications.  The  proposal,  therefore,  is  designed  to  ensure  that  the  phase-out  of  ozone
depleting substances is not undermined.

6

7

COM(2001) 428 of 25.07.2001
The implications to the Montreal Protocol of the inclusion of HFCs and PFCs in the Kyoto  Protocol,
UNEP, October 1999.

5

                                                
The  evolution  of  the  EC  Regulation  is  another  important  factor.  It  was  evident  from  the
working group discussions that it would not be possible to put in place a fully comprehensive
framework for the containment of fluorinated gases since a number of issues required further
research. The Commission’s approach, therefore, is to move forward in two stages. First this
proposal  will  establish  the  framework.  Second  there  will  be  a  period  of  monitoring  and
evaluation after which the Commission will consider the need for strengthening the existing
controls  and  the  need  for  introducing  additional  measures  to  ensure  that  the  objective  is
achieved.  Among  these  additional  measures,  the  Commission  will  be  exploring  whether
environmental  agreements  are  a  suitable  policy  instrument  for  reducing  emissions  and
improving  monitoring  of  fluorinated  gases  for  some  sectors.  The  ECCP  working  group
identified  semi-conductor  manufacture,  the  operation  of  high  voltage  switch  gear  and  the
foam production as sectors that should be examined further.

3.3.

Legal basis of the proposal

This proposal puts in place measures to reduce emissions of fluorinated gases that will help
the European Community  and Member  States  meet  their  Kyoto  Protocol  targets,  and  which
also affect the use and placing on the market of products. This proposal is designed to ensure
that the internal market is protected through the harmonisation of requirements on monitoring,
containment and marketing and use of  fluorinated gases. This is important because Member
States are taking or planning measures at national level that could affect the internal market.
In  terms  of  choosing  the  appropriate  legal  basis  for  this  proposal,  it  is  necessary  to  assess
where its centre of gravity lies. Taking into account the centrality of the provisions about the
use and placing on the market of products, and the likelihood of increasing distortions to the
internal market if the proposal were not made, it is appropriate for the proposal to be based on
Article 95 of the EC Treaty.

3.4.

Subsidiarity and proportionality

The  proposal  takes  account  of  the  principles  of  subsidiarity  and  proportionality.  It  takes
account  of  the  need  to  minimise  distortions  to  the  internal  market  by  introducing  a  level
playing  field  for  all  enterprises  affected.  The  containment  and  recovery  provisions  can  in
principle achieve the internal market objective while ensuring a high degree of environmental
protection, but uniform marketing and use restrictions are needed where containment does not
work  or  the  use  of  fluorinated  gases  is  considered  inappropriate.  Moreover,  Member  States
need  flexibility  to  implement  other  provisions,  such  as  the  training  and  certification
programmes,  in  the  light  of  their  own  national  circumstances.  The  need  to  take  legislative
action  to  reduce  fluorinated  gases  has  been  established  and  is  strongly  supported  by  all
stakeholders.  The  economic  costs  of  the  proposal  have  been  assessed  and  the  measures  are
shown to be cost-effective and proportionate.

4.

MAIN ELEMENTS OF THE PROPOSAL

4.1.

Article 3: containment

This  Article  contains  provisions  designed  to  improve  the  containment  of  fluorinated  gases.
The provisions cover the following aspects:

(cid:1)  duty to prevent and minimise leakage

(cid:1)  mandatory inspections for leakage

6

(cid:1)  leakage detection systems

(cid:1)  maintenance of records

Further  background  information  on  containment  measures  is  available  in  the  report  of  the
working group and in a technical study undertaken for the Commission8

Duty to prevent and minimise leakage

The requirement to take all measures that are technically and economically feasible to prevent
and minimise leakages imposes a duty on all persons responsible for emissions of fluorinated
gases.

Leakage inspections

The  implementation  of  the  emission  control  provisions  of  Regulation  (EC)  2037/2000  has
shown that carrying out regular checks for leakage is one of the most effective ways to reduce
emissions from equipment. The requirement for stationary refrigeration, air-conditioning and
heat-pump equipment and fire protection systems is for at least one leakage inspection a year
to be carried out by competent personnel, but the frequency of inspections varies depending
on the quantity of fluorinated gas contained in the equipment.

Quantity  of  fluorinated
gas in equipment

Frequency  of  inspection  per
annum

3 kilograms or more

Once

30 kilograms or more

Four

300 kilograms or more Monthly

Leakage detection systems

All  owners  of  stationary  refrigeration,  air-conditioning  and  heat-pump  equipment  and  fire
protection systems containing 300 kilograms or more of fluorinated gas are required to install
leak  detection  systems.  The  competent  authority  has  the  power  to  vary  the  frequency  of
leakage inspections where leak detection systems are installed.

Maintenance of records

There  is  a  requirement  for  all  owners  of  stationary  refrigeration,  air-conditioning  and  heat-
pump  equipment  and  fire  protection  systems  containing  3  kilograms  or  more  of  fluorinated
gas  to  maintain  records.  These  should  include  information  on  the  quantity  and  type  of
fluorinated  gas  installed  and  on  amounts  added  and  recovered  during  servicing.  This
information  must  be  kept  available  and  can  be  requested  by  either  the  relevant  competent
authority  or  the  Commission.  These  data  can  be  used  by  the  Member  States  and  the
Commission  to  improve  information  on  leakage  rates  from  various  types  of  equipment  to
improve their monitoring and forecasting of emissions.

8

Assessment of the costs and implication on emissions of potential regulatory frameworks for reducing
emissions of HFCs, PFCs and SF6, Enviros 1 March 2003
http://europa.eu.int/comm/environment/climat/eccp.htm

7

                                                
4.2.

Article 4: recovery

Fluorinated  gases  must  be  recovered  for  recycling,  reclamation  or  destruction  from  the
cooling  circuits  of  all  refrigeration,  air-conditioning  and  heat  pump  equipment,  from
equipment containing solvents, from fire protection systems and fire extinguishers and  from
high voltage switch gear. Unused fluorinated gas contained in refillable containers must also
be recovered. The recovery of fluorinated gases from all other products and equipment shall
be done if it is technically feasible and cost-effective to do so.

4.3.

Article 5: training and certification programmes

Member  States  will  be  required  to  establish  programmes  to  provide  for  the  training  and
certification of personnel involved in making inspections for leakage, and for those involved
in  the  recovery,  recycling,  reclamation  and  destruction  of  fluorinated  gases.  Member  States
must  notify  the  Commission  about  these  programmes  in  a  format  to  be  agreed  by  the
Management Committee. Member States shall give recognition to certificates issued in other
Member States.

4.4.

Article 6: reporting

The reporting requirements for fluorinated gases relate to producers, importers and exporters
of quantities above one tonne per year. Data on the production, importation, export, recycling
and  destruction  of  fluorinated  gases  must  be  submitted  to  the  Commission  annually.  These
data will also identify the applications where these fluorinated gases are used. For producers
and  importers,  the  reports  will  include  an  estimate  of  the  expected  emissions  over  the  life-
cycle  of  the  substance.  This  information  will  be  used  by  the  Commission  to  check  the
accuracy  of  the  level  of  emissions  reported  to  UNFCCC.  The  Commission  will  protect  the
confidentiality of data.

4.5.

Control of use and placing on the market

There are a number of controls on the use of fluorinated gases and the placing on the market
of  products  and  equipment  containing  fluorinated  gases.  These  restrictions  are  necessary
either  because  it  is  difficult  to  reduce  fluorinated  gas  emissions  from  these  applications  or
because the  use  of  fluorinated  gases  is  considered  inappropriate.  In  such  circumstances,  the
use  and  placing-on-the-market  controls  are  proposed  because  technically-feasible  and  cost-
effective alternatives are available. Further background information on these applications and
the alternatives is in the report of the working group and in a technical study undertaken for
the  Commission9.  This  study  provides  detailed  in-depth  analysis  of  the  potential  impacts  of
introducing these controls and was fully considered by the working group.

4.6.

Article 7: control of use

Magnesium die-casting

The  use  of  sulphur  hexafluoride  will  be  prohibited  from  1  January  2007  except  for
magnesium die-casting where the annual consumption of sulphur hexafluoride  is  below  500
kilograms. For this size of operation the alternatives are not yet a cost-effective option.

9

Costs  and  impacts  on  emissions  of  potential  regulatory  framework  for  reducing  emissions  of  HFCs,
PFCs and SF6, Ecofys 18 February 2003.

8

                                                
Vehicle tyres

The  use  of  sulphur  hexafluoride  for  filling  car  tyres  will  be  prohibited  from  the  entry  into
force of the proposed EC Regulation.

Air-conditioning in passenger cars and light commercial vehicles

This  provision  requires  that  the  initial  charging  of  the  air-conditioning  system  of  any
passenger  vehicle  and  light  commercial  vehicle  placed  on  the  market  after  1  January  2009
should use a refrigerant with a global warming potential of 150 or less. This is to prevent such
vehicles  being  placed  on  the  market  during  the  phase-out  period  with  an  empty  air-
conditioning  system  which  could  then  be  charged  with  HFC-134a  or  any  other  fluorinated
refrigerant gas with a global warming potential above 150.

4.7.

Article 8 and Annex II: placing on the market

Air-conditioning in passenger cars and light commercial vehicles

See explanation below for Articles 9 and 10.

Non-refillable containers

Placing on the market non-refillable containers containing fluorinated gases is prohibited one
year  from  the  date  of  entry  into  force  of  the  proposed  EC  Regulation.  Non-refillable
containers  are  designed  to  be  disposable,  which  means  that  any  fluorinated  gas  left  in  such
containers  will  eventually  be  emitted  to  atmosphere.  This  prohibition  does  not  apply  to
metered  dose  inhalers  or  to  non-refillable  containers  used  in  laboratories  for  analytical
purposes.

Non-confined direct-evaporation systems

Placing on the market of non-confined direct-evaporation systems which use fluorinated gases
as  the  refrigerant  is  prohibited  after  the  date  of  entry  into  force  of  the  proposed  EC
Regulation.  This  includes  self-chilling  drink  cans  and  any  other  system  where  the  act  of
cooling results in the refrigerant being released to atmosphere.

Fire protection systems and fire extinguishers

Placing  on 
the  market  fire  protection  systems  and  fire  extinguishers  containing
perfluorocarbons  is  prohibited  from  the  date  of  entry  into  force  of  the  proposed  EC
Regulation.  The  use  of  perfluorocarbons  to  service  existing  fire  protection  systems  and  fire
extinguishers is permitted.

Windows

Placing on the market of windows containing  fluorinated gases is prohibited two  years after
the date of entry into force of the proposed EC Regulation.

9

Footwear

Placing on the market footwear containing sulphur hexafluoride is prohibited from the date of
entry into force of the proposed EC Regulation. Placing on the market footwear containing all
other  fluorinated  gases  is  prohibited  from  1  July  2006.  This  later  prohibition  will  allow
the switch to alternatives to be made in a cost-effective manner.

One-component foams

Placing on the market of one component foams containing fluorinated gases is prohibited one
year after the date of entry into force of the proposed EC Regulation, except when the use of
hydrofluorocarbons is required to meet national safety standards.

Novelty Aerosols

Placing  on  the  market  of  novelty  aerosols  containing  fluorinated  gases  is  prohibited  three
years after the date of entry into force of the proposed EC Regulation.

4.8.

Articles 9 and 10: air-conditioning systems in new vehicles

Performance standards for leakage from mobile air-conditioning systems

Any  new  passenger  vehicles  and  light  commercial  vehicles  placed  on  the  market  with  air
conditioning  systems  containing  fluorinated  gases  with  a  global  warming  potential  higher
than 150 (currently being HFC-134a)are subject to a maximum leakage rate. The leakage rate
shall not exceed 40 grams of fluorinated gases per year for a single evaporator system and 50
grams of fluorinated gases per year for a dual evaporator system. Those placing such vehicles
on  the  market  must  provide  independent  verification  of  the  leakage  rates.  According  to  a
study prepared for the Commission, the actual leakage rates in the EU are currently about 53
grams of HFC-134a per annum with a range from about 30 grams to 80 grams. According to
the information received during the stakeholder consultation many manufacturers specify that
the  air  conditioning  systems  should  not  leak  by  more  than  40  grams  per  annum.  Thus,  this
performance standard is ensuring that all manufacturers follow good business practice and use
high quality parts. In a dual evaporator system – used mainly in minivans and Sport-Utility-
Vehicles,  50  grams  leakage  rate  is  justified  because  of  the  leaks  caused  by  the  additional
evaporator and lines. The cost increase of the requirement to use quality parts is negligible.

Placing on the market of new vehicles with HFC-134a air-conditioning systems

This provides for the phase out of air-conditioning systems in new passenger cars (M1)  and
class  I  of  light  commercial  vehicles  (N1)  using  HFC-134a  beginning  1  January  2009  and
ending  31  December  2013.  This  covers  also  those  second  hand  vehicles  that  have  been
imported to the EU for the first time. However, cars imported for personal use are exempt.

10

Between 1 January and 31 December 2009 only 80% of a predetermined quota of passenger
cars and light commercial vehicles can be placed on the market with air-conditioning systems
containing HFC-134a. This level is reduced over the following years to 60%, 40%, 20% and
10%  and  in  2014  no  air-conditioning  systems  in  new  passenger  cars  and  light  commercial
trucks will contain HFC-134a. This phased approach is designed to allow car manufacturers
and importers enough time to introduce the changes to the platforms of cars in a cost-effective
manner. The quota for a particular year is based on the actual cars placed on the market two
years earlier. For example, the quota for 2009 will be 80% of the cars placed on the market in
the EU in 2007 and the quota for 2010 will be 60% of the cars placed on the market in the EU
in 2008. Thus, the reference year for allocation would be updated annually. As the basis for
allocating  the  quota  is  the  total  cars  placed  on  the  market  (not  cars  having  a  mobile  air
conditioner),  the  method  of  updating  is  neither  unfair  nor  inefficient.  Furthermore,  as  the
arrangement  is  transitional  it  is  acceptable  to  use  the  most  recent  data  for  allocating
transferable quotas.

In order to allow  additional flexibility and  thus to  reduce the  compliance  costs,  a  system of
transferable  quotas  for  air  conditioners  operating  with  HFC-134a  is  established.  The  quota
holders can transfer quotas without any restriction to other quota holders. Transfers will take
effect  through  notification  to  the  Commission,  which  will  register  changes  in  holdings
through an electronic registry.

To  encourage  an  early  entry  of  air  conditioners  operating  with  alternative  refrigerants,  car
manufacturers  and  importers  would  be  allocated  additional  quota  for  HFC-134a  based  air
conditioners on a “one-to-one” basis. For instance, if a car manufacturer placed in 2007 on the
market 10000 cars which have an air conditioner operating with alternative refrigerant, they
will be allocated an additional 10000 quota of HFC-134a based air  conditioners for 2009 or
any other year up to 2018. If a car manufacturer places on the market an enhanced HFC-134a
air  conditioner  which  has  verified  design  specifications  of  half  of  the  emissions,  car
manufacturers would be allocated additional quota for HFC-134a based air conditioners on a
“two-to-one” basis. For instance, if  a car manufacturer placed in 2007 on the  market 10000
cars which have an “enhanced HFC-134a” air conditioner, they will be allocated an additional
5000 quota of HFC-134a based air conditioners (or a 10000 quota of “enhanced HFC-134a”
air conditioners) on 1 January 2009 or any other year up to 2018.

Special provisions have been made for possible new entrants i.e. for those car manufacturers
and  importers  that  have  not  placed  any  vehicles  on  the  market  in  2007  and  the  subsequent
years.  Such  new  entrants  will  be  allocated  non-transferable  quotas  corresponding  to  the
relevant percentage of the current year. For example, if a new entrant wished to place vehicles
with HFC-134a on the market in 2010 and had not sold any cars in the EU before, he would
be allocated non-transferable quotas ex-post in 2011 based on 2010 sales numbers. The new
entrant could thus purchase quotas (e.g. if the penetration rate of HFC-134a based mobile air-
conditioning  systems  in  his  fleet  were  higher  than  60%  as  stipulated  in  paragraph  1  of
Article  10).  However,  while  he  could  save  the  quotas  for  the  following  year,  he  could  not
transfer quotas to other manufacturers or importers, The certification procedures and penalties
would be the same as for other companies.

11

Special provisions have also been made for small producers with a de minimis clause, which
uses the same definitions as in the type approval system, i.e. that the small series and end of
series limits defined in Annex XII to type  approval  directive  (70/156/EEC)  are exempt.  For
verification,  the  number  of  vehicles  placed  on  the  market  needs  to  be  reported.  The
verification  requirements  of  the  quota  scheme  are  given.  Car  manufacturers  and  importers
have  three  months  to  provide  the  verified  information  to  the  Commission.  During  the  next
three  months  quota  holders  may  continue  to  transfer  quotas  so  as  to  ensure  that  they  hold
sufficient  quota  to  cover  the  vehicles  placed  on  the  market.  At  the  end  of  this  three-month
period  a  corresponding  amount  of  quotas  will  be  written  off  (i.e.  cancelled),  while  unused
quotas be valid for the following year.

The penalty for non-complying air conditioners is set so that in the following year, two units
will  be  deducted  from  the  quota  for  each  unit  that  did  not  fulfil  the  requirements  of  this
regulation.  However,  as  car  manufacturers  and  importers  can  transfer  quotas  among  one
another, it is unlikely that this penalty will be used in practice. A financial penalty of €200 per
unit is set for  non-compliance in a transparent manner by making  public  those  who  did  not
comply with the Article 6 of the regulation. A high penalty is required in order to ensure all
car  manufacturers  (both  those  that  comply  early  and  those  that  comply  late)  are  treated
equally.  A  low  penalty  would  encourage  non-compliance  and  would  therefore  be  unfair  to
other manufacturers. The basis for setting the penalty is the same as in the directive on EU-
wide trading on greenhouse gases10. In that directive the financial penalty is set at €100 per
tonne of CO2 and a deduction of 1 tonne from the following year’s allowance. As the lifetime
emissions of an HFC-134a based mobile air conditioner are about 2 tonnes of CO2 equivalent,
the penalty of €200 per non-complying mobile air  conditioner is consistent with the directive
of  EU-wide  trading  on  greenhouse  gases.  Finally,  unused  quotas  can  be  transferred  to  the
following year to allow maximum flexibility for car manufacturers and importers to plan the
introduction of air  conditioning  systems using alternative refrigerants in  a  smooth  and  cost-
effective manner.

In order to allow some HFC-134a based air conditioners to be placed on “niche” markets, it is
possible to carry over the quotas from 2014 till 2018. However, new quotas can no longer be
earned during this period.

It  is  important  that  consumers  are  informed  about  the  impact  of  mobile  air-conditioning
system  on  fuel  consumption  and  subsequent  carbon  dioxide  emissions  as  well  as  the
emissions  of  HFCs.  The  Commission 
intends,  when  reviewing  directive
1999/94/EC11  to  consider  how  this  can  be  best  achieved  and  to  make  any  appropriate
proposals in this respect.

therefore 

There is a  special  provision  to  allow  car  manufacturers  or  importers  to  fulfil  the  provisions
relating to air conditioning systems in vehicles jointly. Subject to European Community rules
on competition, this would allow the car manufacturers and importers to act at the European
level, thus minimising bureaucracy and simplifying the application of this regulation.

10

11

Proposal for the directive COM(2001) 581 23.10.2001.
Directive 1999/94/EC of the European parliament and of the Council of 13 December 1999 relating to
the availability of consumer information on  fuel economy and carbon dioxide emissions in respect of
the marketing of new passenger cars.

12

                                                
In  order  to  facilitate  the  monitoring  this  regulation,  the  Commission  intends  to  propose  an
amendment  of  the  type  approval  directive  (70/156/EEC),  which  will  include  information
about air conditioning systems in the type approval of vehicles and to specify the role of type
approval authorities in the verification of the leakage rates of mobile air conditioners.

4.9.

Article 11: review

Monitoring

It is important and necessary to monitor the effectiveness of the measures in the proposed EC
Regulation to ensure that the policy objective is being met. This will be done by analysing the
inventories on greenhouse gas emissions, which are submitted annually by Member States to
the  Commission  under  the  greenhouse  gas  monitoring  mechanism.  In  addition,  the  data
reported by producers, importers and  exporters on the quantities  of  fluorinated  gases  placed
on the market can be used to validate the data reported by Member States. The Commission
will  also  consider  whether  further  studies  are  needed  to  strengthen  the  monitoring  and
forecasting of emissions.

Evaluation

This proposal covers the air conditioning equipment of passenger cars and light commercial
vehicles.  The  Commission  will  also  study  the  leakage  of  fluorinated  gases  from  air
conditioning and refrigeration systems in other modes of transport. Depending on the findings
the  Commission  may  make  a  proposal  for  further  regulation  by
this  work 
of 
31 December 2005.

Within five  years  after the entry into  force  of  the  proposed  EC  Regulation  the  Commission
must carry out a wide-ranging evaluation of the provisions and make a report to the European
Parliament  and  the  Council.  This  includes  ensuring  that  all  of  the  recommendations  of  the
working group are considered and followed-up as necessary.

The report shall:

(cid:1)  assess  the  impact  of  relevant  provisions  on  emissions  and  projected  emissions  of

fluorinated gases;

(cid:1)  evaluate  the  training  and  certification  programmes  established  by  Member  States  under

Article 5;

(cid:1)  assess the need for European Community standards relating to the control of emissions of
fluorinated  gases  from  equipment,  including  technical  requirements  with  respect  to  the
design of products and equipment

(cid:1)  assess the need  for  the development and  dissemination of notes describing  best available
techniques  and  best  environmental  practices  concerning  the  prevention  and  minimisation
of emissions of fluorinated gases

(cid:1)  include  an  overall  summary  of  the  development  of  the  state  of  technology,  experience
gained,  environmental  requirements  and  any  impacts  on  the  functioning  of  the  internal
market.

13

At the end of this evaluation the Commission will send a report to the European Parliament
and  the  Council  and,  if  appropriate,  include  proposals  for  amendments  to  the  proposed  EC
Regulation.

4.10.

Article 12: management committee

This  makes  provision  for  the  Commission  to  be  assisted  by  the  Management  Committee
established  under  Regulation  (EC)  No  2037/2000  on  matters  relating  to  fluorinated  gases.
Using this Management Committee builds on the strong links that exist between the Montreal
and Kyoto Protocols and will ensure that decisions taken on fluorinated gases take account of
policies affecting ozone depleting substances.

5.

CONSULTATIONS

All key stakeholders have been involved by virtue of the ECCP process. The working group
comprised about 10 permanent and 110 "revolving" participants from industry, environmental
non-governmental organisations, academia, consultants, Member States and the Commission.
The majority of the 110 revolving participants represented the various sectors of industry. The
large make up of the group reflects the variety and complexity of the different sectors relevant
for fluorinated gas emissions. Due to the high number of specialists from industry, the focus
of  the  discussions  was  to  seek  consensus  on  the  various  technical  options  for  emission
reduction.

Under  the  work  programme  of  the  group,  all  major  sectors  accountable  for  emissions  of
fluorinated  gases  have  been  covered  in  9  full-day  meetings  between  June  2000  and  April
2001.  The  mandate  of  the  working  group  was  extended  to  allow  it  to  consider  technical
aspects  of  the  proposed  legislative  framework.  There  were  three  meetings:  6  May  2002;
27 June  2002  and  25  September  2002.  In  addition,  the  Commission  services  have  held
bilateral meetings with stakeholders, especially when considering technical and commercially
sensitive aspects of the proposal.

6.

BUSINESS IMPACT ASSESSMENT12

6.1.

Overall analysis of economic costs and potential for emissions reductions

Emissions: baseline and projections

The  working  group  examined  the  sources  of  fluorinated  gas  emissions  and  established  a
baseline  in  1995  and  projected  emissions  through  to  2010.  The  overall  picture  shows
emissions  increasing  by  around  50%  from  65  to  98  million  tonnes  of  carbon  dioxide
equivalent between 1995 to 2010 (table 1). Within this increase there is a significant change
in HFC emissions  between  sectors  which  needs  to  be  understood.  Emissions  of  HFCs  from
industrial processes are expected to fall from 31.6 million tonnes of carbon dioxide equivalent
to  7.7  million  tonnes  of  carbon  dioxide  equivalent.  However,  from  other  sectors  there  is  a
strong upward trend in emissions as HFCs are used to phase-out ozone depleting substances.
This is most marked in the refrigeration and air-conditioning sector where emissions increase

12

For this proposal there was no requirement to carry out an extended impact assessment. The business
impact assessment provides an assessment of the economic impact of the proposal on business and the
environmental benefits in terms of expected reductions in emissions.

14

                                                
from 3.7 million tonnes of carbon dioxide equivalent in 1995 to around 40.5 million tonnes of
carbon dioxide equivalent in 2010.

Table 1: Baseline and projected emissions (MT carbon dioxide equivalent)

Sector

Refrigeration and air-conditioning

Mobile air-conditioning

Foam production

One Component Foams

Aerosols

High voltage switch gear

Cleaning solvents

Fire fighting agents

Semi conductor manufacture

Tyres and windows

Metered dose inhalers

HCFC-22 production

Aluminium production

Magnesium production and casting

Others

TOTAL

1995

2.3

1.4

0.1

3.3

1.3

5.0

0.0

0.0

1.9

7.9

0.0

31.6

7.8

1.5

1.1

2010

20.5

20.0*

 9.6*

3.5

5.8*

4.7

 0.3*

0.5

6.3

6.0

4.3

7.7

4.0

2.7

2.1

65.2

98.0

Figures marked * have been revised as a result of further study following the working group report

Overall economic costs and expected reduction in emissions

In overall terms, the measures included in this proposal are expected to reduce emissions in
2010  by  around  23  million  tonnes  of  carbon  dioxide  equivalent.  The  containment  measures
have  an  average  cost  of  around  €18  per  tonne   of  carbon  dioxide  equivalent  reduced.  The
marketing and use restrictions have an average cost less than €1 per tonne of carbon dioxide
equivalent,  although  this  varies  according  to  application.  These  figures  are  based  on  the
working group report and four technical studies (see footnotes 8 and 9) carried out on behalf
of the Commission. Stakeholders were extensively consulted during these studies and had the
opportunity to comment on the final reports.

15

Containment study

This study considered the expected costs of introducing measures to contain emissions across
all Member States. As an advanced containment system has been in place in the Netherlands
for a number of years this system was used as a benchmark. The results of the study confirm
that containment can be regarded as a cost-effective approach, particularly in the refrigeration
and air-conditioning sectors (this analysis excluded the mobile air-conditioning sector which
was  the  subject  of  separate  studies).  Costs  in  the  Member  States  vary  according  to  the
structure  of  the  refrigeration  and  air-conditioning  sectors  and  the  extent  to  which  measures
have  already  been  taken.  In  those  cases  where  control  systems  are  already  in  place  the
incremental  costs  will  be  low  while  they  are  considerably  above  average  where  there  are
delays  in  the  implementation  of  earlier  legislation.  The  emission  reduction  achievable  by
2010  due  to  additional  containment  efforts  are  around  15  million  tonnes  carbon  dioxide
equivalent.

Marketing and use and data reporting study

This  study  examined  the  cost  and  impact  on  businesses  of  potential  marketing  and  use
restrictions of certain applications of fluorinated gases. In total nine sectors were investigated,
and  stakeholders  were  consulted  throughout  on  the  technical  feasibility  of  alternative
technologies  and  the  associated  costs.  The  marketing  and  use  restrictions  proposed  could
contribute  to  an  emission  reduction  equivalent  of  around  6  million  tons  of  carbon  dioxide
equivalent  in  2010  for  an  average  cost  of  less  than  €1  per  tonne  carbon  dioxide  equivalent
reduced (but excluding the mobile air-conditioning sector which was the subject of separate
studies).

The  overall  annual  costs  of  the  data  reporting  requirements  are  estimated  to  be
around €400,000 shared between 91 enterprises.

Mobile air-conditioning studies

Based on two studies on the leakage of hydrofluorocarbons from mobile air conditioners, the
Commission Services (DG Environment) issued a consultation paper, in which it re-estimated
the emissions of hydrofluorocarbons at 18-38 million tonnes of carbon dioxide equivalent in
2010 and 28-58 million tonnes of carbon dioxide equivalent in 2020. The uncertainties in the
emissions depend upon the real life leakage rates, which  are inherently difficult to measure.
In the consultation paper the costs of use restrictions were estimated to range between €5 per
tonne of carbon dioxide equivalent and €33 if the flammability issue of a low global warming
potential hydrofluorocarbon or hydrocarbons was solved, or between €21 and €140 per tonne
of carbon dioxide equivalent if the alternative refrigerant was carbon dioxide. The high cost of
the  latter  alternative  was  assuming  that  industry  would  not  find  a  low  cost  solution  to
manufacture hoses for air conditioners. Once this is solved the costs will drop towards €20-
€40 per tonne of carbon dioxide equivalent.

Based on the responses to the consultation paper, the Commission estimates that the leakage
of hydrofluorocarbons is likely to be 20 to 25 million tonnes of carbon dioxide equivalent in
2010 and the average cost of use restrictions is between €8 and €18 if the flammability issue
is solved and between €21 and €46 if the cost 
refrigerant is solved.

of hoses in the case for carbon dioxide as the

16

For  the  placing  on  the  market  restrictions  relating  to  mobile  air-conditioning,  the
environmental  impact  of  the  proposal  is  that  the  lifetime  emissions  of  HFC-134a  from  air
conditioning  systems  would  be  either  eliminated  (if  non-HFC  solutions  are  chosen  by
industry) or reduced by 90% (if HFC-152a is chosen as the refrigerant). Table 2 gives the best
estimates of lifetime emissions after consulting with the industry. While the emissions during
use of air conditioners (which is the largest source of emissions) have been established by the
Commission, the largest uncertainty in the emissions relates to those during servicing of the
equipment.

Overall, the lifetime emissions of HFC-134a are estimated to range from 1.70 and 2.24 tonnes
of carbon dioxide equivalent per vehicle. The lower leakage of 1.70 tonnes of carbon dioxide
equivalent is likely to be more representative for smaller or single evaporator systems while
the  higher  leakage  of  2.24  tonnes  of  carbon  dioxide  equivalent  is  likely  to  be  more
representative for larger or dual evaporator systems.

Table 2: Leakage of HFC-134a during the lifetime (14 years) of a vehicle based on two
assumptions, tonnes of carbon dioxide equivalent.

Regular  HFC-134a  emissions
occurring 
normal
operation of a vehicle

during 

Irregular HFC-134a emissions
resulting from accidents, stone
hits, defects etc.

Low High Assumptions

0.96

0.96 53 g of HFC-134a / year

0.29

0.36 16  g  of  HFC-134a  per  year  in  “low”

case and 20 g in “high” case

HFC-134a  emissions  during
servicing

0.26

HFC-134a  emissions  at  end-
of-life

0.14

0.52 100  g  of  HFC-134a  per  service  in
“low” case 200 g per service in “high”
case

0.35 20% of refrigerant lost of the charge at
the  end  of  life  in  the  “low”  case,  50%
in the “high” case

Other HFC-134a emissions

0.04

0.04 Loss  of  refrigerant  at  manufacturing

and distribution stages.

Total

1.70

2.24

6.2.

Who will be affected by the proposal?

The proposal will affect the producers, importers and exporters of fluorinated gases as sales of
fluorinated  gases  for  servicing  should  fall.  The  manufacturers  of  equipment  and  products
containing  fluorinated  gases  will  also  be  affected  as  they  need  to  take  steps  to  minimise
emissions during manufacture and also design equipment to be more leaktight. The owners of
equipment  containing  fluorinated  gases  will  have  to  ensure  their  equipment  is  checked  for
leakage  on  a  regular  basis.  The  servicing  sector  will  be  affected  because  such  persons
handling equipment containing fluorinated gases must be trained and certified.

17

Concerning  air  conditioning  in  passenger  cars  and  light  commercial  vehicles,  the  proposal
will  affect  the  chemical  companies  that  supply  HFC-134a,  suppliers  of  air  conditioning
equipment as well as vehicle manufacturers. Due to reduced leakage of HFC-134a chemical
companies will sell less refrigerant and thus lose revenue, but it needs to be emphasised, that
it is the chemical itself that causes global warming when emitted to the atmosphere. Once the
market  and  sales  restrictions  have  taken  place,  chemical  companies  will  carry  on  supplying
HFC-134a to those vehicles, stationary air conditioners as well as refrigerators that continue
to be operated with that refrigerant.

The  current  HFC-134a  production  capacity  in  the  EU  is  estimated  at  43  kilotonnes  and  not
likely  to  increase.  Without  this  regulation  the  total  sales  of  HFC-134a  to  mobile  air
conditioners  are  estimated  to  be  about  25  kilotonnes  with  a  production  value  of  about  €75
million in 2010. With the proposed regulation, the sales of HFC-134a would reduce by less
than  10%  in  2010.  This  share  would  increase  in  the  following  years  and  by  the  time  all
vehicles have converted to use alternative refrigerants (in about 2025), the sales of HFC-134a
to mobile air conditioning would no longer take place. If car manufacturers choose to install
air conditioning equipment running with HFC-152a, the chemicals industry would substitute
one chemical by another.

Among  component  and  systems  suppliers,  some  of  which  are  also  SMEs,  the  effect  of  the
proposal would be both a business opportunity and a threat. Many of the EU companies are
global  leaders  in  alternative  refrigerant  technologies.  For  these  companies  the  proposal  will
have a positive effect as they can concentrate their research and development  effort on  new
technologies. For less innovative companies, the proposal is likely to imply additional cost as
they need to step up their research and development activities.

Among  car  manufacturers,  the  situation  is  similar  to  the  system  and  component  suppliers.
Some  European  car  manufacturers  have  carried  out  research  into  and  development  of
alternative  refrigerants  for  the  past  decade.  For  such  companies  the  proposal  will  offer  a
business  opportunity  to  commercialise  the  fruits  of  their  work  while  less  innovative
companies in air conditioning will have to incur additional costs.

It needs to be borne in mind that if car manufacturers decide to choose solutions that do not
use hydrofluorocarbons, they  will no longer be required to recover  such  gases  at  the  end of
life  of  vehicles,  and  thus  save  the  costs.  -Garages  that  maintain  air  conditioners  –  many  of
which  are  SMEs  –  will  enjoy  a  similar  benefit:  the  requirement  to  recover  and  recycle
hydrofluorocarbons  would  no  longer  need  to  take  place  for  cars  that  have  air  conditioning
systems using alternative refrigerants.

6.3.

What will business have to do to comply with the proposal?

To  comply  with  the  provisions  users  of  fluorinated  gases  will  have  to  ensure  that  their
equipment is regularly checked and well-maintained by competent persons. For those sectors
who have to move to alternatives they will need to obtain information about the alternatives
and plan their transition. For others, like those using sulphur hexafluoride in tyres, the switch
to air or nitrogen is easy and cost-free.

18

The  chemicals  industry  needs  to  supply  alternative  refrigerants  for  mobile  air  conditioning
systems  depending  on  the  decisions  made  by  the  car  manufacturers  on  the  refrigerant.
Component  and  systems  suppliers  need  to  adapt  their  products  to  the  new  design
requirements, too. For this sector, the production costs of more  environmentally  friendly  air
conditioning  systems  will  be  higher,  but  they  will  be  offset  by  the  increased  revenues  that
they  will  receive  from  their  clients.  Clearly  those  suppliers  that  have  already  carried  out
research and development of alternative refrigerants will be in a better market position to reap
the benefits when the proposal takes effect.

Car  manufacturers  have  several  alternative  strategies  to  comply  with  the  proposal,  some  of
which  are  not  mutually  exclusive.  First,  they  can  decide  not  to  supply  any  air  conditioning
systems  in  the  vehicles.  This  is  a  possible  response  in  the  small,  inexpensive  passenger  car
segment as well as in some light commercial vehicles. Second, the manufacturer can decide to
switch to alternative refrigerants, which are likely to be either carbon dioxide, hydrocarbons
or HFC-152a.  It is of course possible, although unlikely in the near future, that the industry
will develop other refrigerants, or that other techniques to cool down vehicles emerge. Third,
given  the  flexibility  mechanism  introduced  in  the  proposal,  the  manufacturer  can  decide  to
introduce air conditioning systems operating with alternative refrigerants earlier than what is
required in the proposal. Car manufacturers may wish to convert completely some production
lines  to  new  systems  and,  if  as  a  consequence  their  whole  fleet  will  over-comply  on  a
particular year, they use the credits that are gained to convert the air conditioning systems in
some other market later. This would be meaningful in cases where manufacturers choose to
delay the investment in new systems to as late a date as possible. Fourth, some manufacturers
may wish to take advantage of the flexibility system to such an extent that they will be able to
transfer  credits  to  other  manufacturers  and  thus  recuperate  some  of  their  research  and
investment costs. It is unlikely, however, that this fourth strategy will be used much.

6.4.

What economic effect is the proposal likely to have?

For the containment provisions and the marketing and use provisions the economic costs are
not high. In many cases the studies have shown that  there are clear  economic  benefits from
moving  to  alternative  technologies.  Refrigeration  and  air-conditioning  equipment  that
functions  well  uses  less  energy  and  causes  less  disruption  in  the  workplace,  for  example,  a
production  line  where  refrigeration  is  essential  runs  more  efficiently  if  the  refrigeration
equipment  is  functioning  well.  Similarly,  air-conditioning  is  essential  in  some  buildings  to
ensure  the  comfort  of  the  occupants  and  so  an  efficient  and  functioning  air-conditioning
system can contribute towards the productivity of a workplace.

The  service  and  maintenance  sector  can  expect  more  work  from  the  requirement  to  make
regular inspections, and suppliers of high quality components can expect to do more business
than those supplying inferior products. Part of the cost of regular inspections will be borne by
the owners of the equipment, but there are also benefits as less leaky equipment is generally
much more energy efficient and they will not have to buy new fluorinated gases to replace the
amounts lost.

19

The  production  cost  of  air  conditioning  equipment  in  passenger  cars  and  light  commercial
trucks will increase. Depending on the technical solution chosen by the car manufacturer the
increase  in  production  costs  is  estimated  to  range  between  €15  and  €40  if  HFC-152a  were
vehicle  if  hydrocarbons  were  used  as  the
used  as  the  refrigerant,  between  €30  and  €50  per 
re  used  as  the  alternative  refrigerant.  It
refrigerant,  and  €40  and  €150  if  carbon  dioxide  we
should be noted that the high cost of carbon dioxide assumes that the industry will not be able
to  solve  during  this  decade  a  technical  problem,  which  relates  to  using  high  pressure  in
flexible  hoses.  Current  commercial  hose  technologies  are  relatively  expensive.  The  current
production cost of an air conditioning system ranges from €250 to €400.

While the production cost of air conditioning equipment will rise, there will be changes in the
tools that will be used for servicing air conditioning equipment, too. During the change from
one  system  to  another  there  will  be  some  increase  in  costs  in  garages  as  tools  specific  to
refrigerants need to be purchased. However, after the change over to new systems, the garages
will no longer face higher costs, and if carbon dioxide is chosen as the refrigerant, there will
no  longer  be  a  need  to  recycle  the  refrigerant  and  thus,  the  costs  of  recycling  equipment
(costing about €2000 per unit) no longer need to be incurred by garages.

For  end-of-life  vehicle  depots,  if  carbon  dioxide  is  chosen  as  the  refrigerant,  there  will  no
longer be a need to recycle the refrigerant as required by the end of life vehicle directive, thus,
the costs of recovery equipment no longer need to be incurred by garages. It is estimated that
the recovery of HFC-134a costs between €20 and 
€30 per end-of-life vehicle. This cost would
be saved if carbon dioxide were chosen as the refrigerant.

HFC-134a is a relatively expensive refrigerant compared to its alternatives. Thus, the proposal
would lower the costs of the refrigerant charge.

The  economic  effect  of  the  proposal  will  be  an  increase  in  the  investment  cost  of  air
conditioning  equipment,  which  is  likely  to  be  offset  by  lower  operational  costs  for  air-
conditioning systems due to lower maintenance and lower disposal costs. Given the range of
costs depending on the technical solution (HFC-152a in
€15-€40 and €40-€150 of additional 
the first case and carbon dioxide in the second case), it is likely that the cost of the alternative
systems over the lifetime of the air conditioner will be between €15 and €150 higher than the
cost of current systems.

This reflects the view that industry will be able to solve the technical problem concerning the
cost  of  high  pressure  hoses,  if  carbon  dioxide  is  chosen  as  the  refrigerant.  Further,  the
possibility of using carbon dioxide based air conditioner as a heat pump is not included in the
calculation. In an increasing number of direct injection diesel as well as hybrid cars there is
no  longer  enough  excess  heat  and  thus,  cars  need  to  have  auxiliary  heaters.  In  a  carbon
dioxide  based  system  such  auxiliary  systems  would  no  longer  be  required  as  the  air
conditioner can be reversed and used as a heater. However, due to lack of information of the
cost implications, the Commission has not made an estimate of the (beneficial) impact of the
heat pump in this calculation.

20

In sum,  production  costs  of  air  conditioning  systems  are  estimated  to  increase  between  €15
and  €150.  The  Commission  has  estimated  that  due   to  this  proposal  hydrofluorocarbon
emissions  from  each  vehicle  will  reduce  between  1.70  and  2.24  tonnes  of  carbon  dioxide
equivalent. This would imply that the cost per tonne of carbon dioxide equivalent of the sales
restriction would range from €7(in the case the cost increase per air conditioner is small and
the current leakage of hydrofluorocarbons is high) and €88(in the case the cost increase per air
conditioner  is  high  and  the  current  leakage  of  hydrofluorocarbons  is  low)  (table  3).  Given
the  long  transition  period  and  the  likelihood  that  one  or  several  of  the  technologies  will
develop, the costs of compliance are likely to correspond to the lower values of table 3.

Table 3: Estimated cost of compliance cost per tonne of carbon dioxide equivalent
of the proposal

Incremental cost of air conditioner
operating with alternative refrigerant
assuming either low or high cost increase
per air conditioner*)

HFC-152a (low cost increase: €15)

Hydrocarbons (low cost increase: €30)

CO2 (low cost increase: €40)

HFC-152a (high cost increase: €40)

Hydrocarbons (high cost increase €50)

CO2 (high cost increase: €150)

Cost in euros per tonne of CO2 equivalent

If current leakage of
hydrofluorocarbons is
high

If current leakage of
hydrofluorocarbons
is low

€7

€13

€18

€20

€22

€67

€10

€18

€24

€26

€29

€88

*)  The  calculations  take  into  account  the  fact  that  HFC-152a  has  90%  lower  global  warming  potential  than
HFC-134a.

6.5.

Does the proposal contain measures to take account of the specific situation of
SMEs?

The  situation  of  SMEs  was  taken  into  account  during  the  working  group  discussions  and
specifically addressed in the studies undertaken. The measures in the proposal do not have a
disproportionate  affect  on  SMEs,  but  in  the  case  of  the  use  prohibition  for  sulphur
hexafluoride  in  magnesium  die-casting  a  derogation  was  made  for  SME  operations  because
the switch to alternatives was not cost-effective.

For  the  provisions  relating  to  mobile  air-conditioning,  the  suppliers  of  HFC-134a  and  car
manufacturers do not belong to the SME category. SMEs among the component suppliers will
be treated similarly to other suppliers.

21

2003/0189 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on certain fluorinated greenhouse gases

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular
Article 95 thereof,

Having regard to the proposal from the Commission13,

Having regard to the opinion of the European Economic and Social Committee14,

Acting in accordance with the procedure laid down in Article 251 of the Treaty15,

Whereas:

(1) 

(2) 

The  sixth  Environmental  Action  Programme:  Environment  2010:  Our  Future,
Our Choice16  identifies  climate  change  as  a  priority  for  action.  That  Programme
recognises  that  the  Community  is  committed  to  achieving  an  8%  reduction  in
emissions of greenhouse gases within 2008 to 2012 compared to 1990 levels, and that
in  the  longer-term  global  emissions  of  greenhouse  gases  will  need  to  be  reduced  by
approximately 70% compared to 1990 levels.

The  ultimate  objective  of 
the  United  Nations  Framework  Convention  on
Climate Change,  which  was  approved  by  Council  Decision  94/69/EC  of
15 December 1993  concerning  the  conclusion  of  the  United  Nations  Framework
Convention  on  Climate  Change17,  is  to  achieve  stabilisation  of  greenhouse  gas
concentrations  in  the  atmosphere  at  a  level  which  prevents  dangerous  anthropogenic
interference with the climate system.

13

14

15

16

17

OJ C […], […], p. […].
OJ C […], […], p. […].
OJ C […], […], p. […].
Decision 1600/2002/EC of the European Parliament and of the Council of 22 July 2002 laying down the
Sixth Community Environment Action Programme, OJ L 242, 10.9.2002, p. 1.
OJ L 33, 7.2.1994, p. 11.

22

                                                
(3) 

(4) 

Council  Decision  2002/358/EC  of  25  April  2002,  concerning  the  conclusion  of  the
Kyoto Protocol to the United Nations Framework Convention on Climate Change and
the  joint  fulfillment  of  commitments  thereunder18  commits  the  Community  and  its
Member States to reduce their aggregate anthropogenic emissions of greenhouse gases
listed in Annex A to the Kyoto Protocol by 8% compared to 1990 levels in the period
2008 to 2012.

Provision  should  be  made  for  the  prevention  and  minimisation  of  emissions  of
fluorinated gases, without prejudice to Council Directive 75/442/EEC of 15 July 1975
on waste19, Council Directive 96/61/EC of 24 September 1996 concerning integrated
pollution  prevention  and  control20,  to  Directive  2000/53/EC  of  the  European
Parliament and of the Council of 18 September 2000 on end-of life vehicles21 and to
Directive  2002/96/EC  of  the  European  Parliament  and  of  the  Council  of  27  January
2003 on waste electrical and electronic equipment22.

(5)  Member  States  are  taking  or  planning  differing  measures  to  reduce  emissions  of
fluorinated gases. Such differing measures by Member States could create obstacles or
distort  competition  within  the  internal  market.  It  is  therefore  appropriate  to  take
measures at Community level to ensure that the  internal  market  is  protected  through
the harmonisation of requirements on monitoring, containment and marketing and use
of fluorinated gases.

(6)  Marketing  and  use  restrictions  for  certain  applications  of  fluorinated  gases  are
considered  appropriate  to  prevent  distortions  in  the  internal  market  that  could  result
from  differing  measures  taken  by  Member  States,  where  viable  alternatives  are
available  and  improvement  of  containment  and  recovery  is  not  feasible,  voluntary
initiatives by some industry sectors needs to be taken into account as well as the fact
that the development of alternatives is still ongoing.

(7) 

(8) 

(9) 

18

19

20

21

22

The Kyoto Protocol requires reporting on emissions of fluorinated gases and data on
the  production,  imports  and  export  of  fluorinated  gases  can  help  to  validate  the
accuracy  of  these  reports.  Annual  reporting  should  therefore  be  required  from
producers, importers and exporters of fluorinated gases.

Emissions  of  hydrofluorocarbon-134a  (HFC-134a)  from  air  conditioners  in  motor
vehicles  are  of  growing  concern  because  of  their  impact  on  climate  change.  Cost-
effective  and  safe  alternatives  are  expected  to  be  available  imminently.  These
alternatives are not damaging or are considerably less damaging to the climate and do
not  adversely  affect  vehicles’  energy  consumption  and  related  carbon  dioxide
emissions.  The  use  of  alternative  refrigerants  should  be  facilitated  by  using  market
mechanisms in the form of transferable quotas.

In  order  to  facilitate  the  monitoring  and  verification  of  the  leakage  rates  of  air
conditioning systems in new vehicles, the Commission will promote the preparation of
European  standards  and  will  take  other  necessary  measures  in  order  to  amend  the
pertinent European vehicle type approval legislation.

OJ L 130, 15.5.2002, p. 1.
OJ L 194, 25.7.1975, p. 39.
OJ L 257, 10.10.1996, p. 26.
OJ L 269, 21.10.2000, p. 34.
OJ L 37, 13.2.2003, p. 24.

23

                                                
(10)  Provision should be made for the monitoring, evaluation and review of the provisions

contained in this Regulation.

(11)  Member States should lay down rules on sanctions applicable to infringements of this
Regulation  and  ensure  that  those  rules  are  implemented.  Those  sanctions  must  be
effective, proportionate and dissuasive.

(12)  This Regulation respects the fundamental rights and observes the principles recognised

in particular by the Charter of Fundamental Rights of the European Union.

(13)  Since,  in  order  to  preserve  the  internal  market,  the  objective  of  the  proposed  action,
the  containment,  reporting,  control  of  use  and  placing  on  the  market  of  certain
fluorinated  gases,  cannot  be  sufficiently  achieved  by  the  Member  States  acting
individually,  and  can  therefore  by  reason  of  the  scale  and  effects  of  the  proposed
action be better achieved at Community level, the Community may adopt measures, in
accordance  with  the  principle of subsidiarity as set out in Article  5 of  the  Treaty.  In
accordance  with  the  principle  of  proportionality,  as  set  out  in  that  Article,  this
Regulation does not go beyond what is necessary in order to achieve that objective.

(14)  The measures necessary for the implementation of this Regulation should be adopted
in accordance with Article 4 of Council Decision 1999/468/EC of 28 June 1999 laying
down  the  procedures  for  the  exercise  of  implementing  powers  conferred  on  the
Commission23 through the committee established by Regulation (EC) No 2037/200024.

HAVE ADOPTED THIS REGULATION:

Article 1

Scope

This  Regulation  shall  apply  to  the  containment,  the  use,  placing  on  the  market  of  the
fluorinated greenhouse gases hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride,
and to the reporting of information on those gases. These substances are listed in Annex A to
the Kyoto Protocol. An indicative list is given in Annex I.

This  Regulation  shall  apply  without  prejudice  to  Council  Directive  75/442/EEC,  Council
Directive 96/61/EC, to Directive 2000/53/EC of the European Parliament and of the Council
and to Directive 2002/96/EC of the European Parliament and of the Council.

Article 2

Definitions

For the purposes of this Regulation the following definitions shall apply:

(a) 

“placing  on  the  market”  means  the  supplying  of  unused  products  and
equipment  containing  fluorinated  gases  by  a  manufacturer  or  an  importer  for
the first time in the European Union;

23

24

OJ L 184, 17.7.1999, p. 23.
OJ L 244, 29.9.2000, p. 1.

24

                                                
(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

“container” means a product designed for the purpose of transporting or storing
fluorinated gases;

“recovery”  means  the  collection  and  storage  of  fluorinated  gases  from,  for
example,  machinery,  equipment  and  containment  vessels  during  servicing  or
for disposal;

“recycling”  means  the  reuse  of  a  recovered  fluorinated  gas  following  a  basic
cleaning  process  such  as  filtering  and  drying.  For  refrigerants,  recycling
normally involves recharge back into equipment as is often carried out on site;

“reclamation” means the reprocessing and upgrading of a recovered fluorinated
gas  through  such  processes  as  filtering,  drying,  distillation  and  chemical
treatment  in  order  to  restore  the  substance  to  a  specified  standard  of
performance, which often involves processing off site at a central facility;

“vehicles”  means  any  motor  vehicle  of  categories  M1  and  class  I  of  N1,  as
defined in Annex II to Directive 70/156/EEC;

“air conditioning systems  containing  fluorinated  gases  with  a  global warming
that  use
potential  higher 
hydrofluorocarbons  the  global  warming  potential  of  which  exceeds  150  as
specified in Annex I;

than  150”  means  air  conditioning  systems 

“enhanced  HFC-134a  air  conditioner”  means  an  air  conditioner  containing
fluorinated  gases  with  a  global  warming  potential  higher  than  150where  the
rate of leakage is verified as being less than 20 grams of fluorinated gases with
a  global  warming  potential  higher  than  150  per  year  for  a  single  evaporator
system,  or  less  than  25  grams  of  fluorinated  gases  with  a  global  warming
potential higher than 150 per year for a dual evaporator system, and where the
system will not require refilling for at least 12 years; and

(i) 

“novelty  aerosols”  means  those  aerosol  generators  listed  in  the  Annex  to
Directive 94/48/EC.

Article 3

Containment

1.

2.

All measures that are technically and economically feasible shall be taken to prevent
and minimise emissions of fluorinated gases.

Subject  to  paragraph  3,  stationary  refrigeration,  air-conditioning  and  heat-pump
equipment and fire protection systems containing fluorinated gases shall be inspected
for leakage according to the following schedule:

a)

b)

equipment  containing  3kg  or  more  of  fluorinated  gases  shall  be  inspected  at
least once every year;

equipment containing 30kg or more of fluorinated gases shall be inspected four
times per year;

25

3.

4.

5.

c)

equipment  containing  300kg  or  more  of  fluorinated  gases  shall  be  inspected
monthly.

Where a leakage detection system is in place, the competent authority may adjust the
frequency of inspections under paragraph 2(b) and (c) as appropriate.

Owners  of  stationary  refrigeration,  air-conditioning  and  heat-pump  equipment  and
fire  protection  systems  containing  300kg  or  more  of  fluorinated  gases  shall  install
leakage detection systems.

Owners  of  stationary  refrigeration,  air-conditioning  and  heat-pump  equipment  and
fire  protection  systems  containing  3kg  or  more  of  fluorinated  gases  shall  maintain
records on the quantity and type of fluorinated gases installed, any quantities added
and  the  quantity  recovered  during  maintenance  and  servicing.  The  records  shall  be
made available on request to the competent authority and to the Commission.

Article 4

Recovery

1.

Fluorinated gases contained in the following types of equipment shall be recovered
for recycling, reclamation or destruction:

a)

b)

c)

d)

the cooling circuits of refrigeration, air-conditioning and heat pump equipment;

equipment containing solvents;

fire protection systems and fire extinguishers ; and

high voltage switch gear,

Recovery shall take place during the servicing and maintenance of that equipment or
during the final disposal thereof.

Unused  fluorinated  gases  contained  in  refillable  containers  shall  be  recovered  for
recycling, reclamation or destruction.

Fluorinated  gases contained in  other  products  and equipment  shall be recovered, to
the extent that it is technically feasible and cost-effective for recycling, reclamation
or destruction.

Article 5

Training and certification programmes

Member  States  shall  establish  training  and  certification  programmes  for  the
personnel involved in carrying out the activities provided for in Articles 3 and 4.

2.

3.

1.

26

2.

3.

1.

Within  two  years  of  the  entry  into  force  of  this  Regulation,  Member  States  shall
notify the Commission of information on the training and certification programmes
referred  to  in  paragraph  1.  Member  States  shall  give  recognition  to  the  certificates
issued in another Member State and shall not restrict the freedom to provide services
or  the  freedom  of  establishment  for  reasons  relating  to  the  certification  issued  in
another Member State.

Within  one  year  of  the  entry  into  force  of  this  Regulation,  the  Commission,  in
accordance with the procedure referred to in Article 12(2), shall determine the format
of such notifications.

Article 6

Reporting

By 31 March each year from the second calendar year following entry into force of
this  regulation,  the  following  data  in  respect  of  the  preceding  year  shall  be
communicated to the Commission:

(a)

Each  producer  who  produces  more  than  one  tonne  per  annum  shall
communicate:

-

-

its total production of each fluorinated gas, identifying the applications in
which the substance is expected to be used and providing an estimate of
the expected emissions over the life-cycle of the substance;

any quantities recycled, reclaimed or destroyed.

(b) Each  importer  who  imports  more  than  one  tonne  per  annum,  including  any

producers who also import, shall communicate:

-

-

any  quantities  of  fluorinated  gases  marketed  in  the  Community,
separately identifying the applications in which the substance is expected
to be used and providing an estimate of the expected emissions over the
life-cycle of the substance;

any  quantities  of  used  fluorinated  gases  imported  for  recycling,  for
reclamation or for destruction.

(c)

Each  exporter  who  exports  more  than  one  tonne  per  annum,  including  any
producers who also export, shall communicate:

-

-

any quantities of fluorinated gases exported from the Community;

any  quantities  of  used  fluorinated  gases  exported  for  recycling,  for
reclamation or for destruction.

2.

The format of the report referred to in paragraph 1 shall be established in accordance
with the procedure referred to in Article 12(2) within one year of the entry into force
of this Regulation.

27

3.

4.

1.

2.

3.

The  Commission  shall  take  appropriate  steps  to  protect  the  confidentiality  of  the
information submitted to it.

The  Commission  may  modify  the  reporting  requirements  in  paragraph  1  in
accordance with the procedure referred to in Article 12(2), to improve the practical
application of those reporting requirements.

Article 7

Control of use

The use of sulphur hexafluoride in magnesium die-casting, except where the quantity
of  sulphur  hexafluoride  used  is  below  500  kilograms  per  year,  shall  be  prohibited
from 1 January 2007.

The  use  of  sulphur  hexafluoride  for  the  filling  of  vehicle  tyres  shall  be  prohibited
from the date of entry into force of this Regulation.

The use of fluorinated gases with a global warming potential higher than 150 to fill
air  conditioning  systems  for  the  first  time  in  new  vehicles  placed  on  the  market  as
from 1 January 2009 shall be prohibited, except as provided for in article 10.

Article 8

Placing on the market

The  placing  on  the  market  of  fluorinated  gases  in  applications  listed  in  Annex  II  shall  be
prohibited as specified in that Annex.

Article 9

Air conditioning systems in new vehicles

1.

2.

From  1  January  2005,  any  person  placing  new  vehicles  on  the  market  with  air
conditioning  systems  containing  fluorinated  gases  with  a  global  warming  potential
higher  than  150  shall  ensure  that  the  rate  of  leakage  has  been  verified  as  not
exceeding 40 grams of fluorinated  gases per  year  for a  single  evaporator system or
50 grams of fluorinated gases per year for a dual evaporator system.

From  1  January  2009,  the  placing  on  the  market  of  new  vehicles  with  air
conditioning  systems  containing  fluorinated  gases  with  a  global  warming  potential
higher than 150 shall be prohibited, except as provided for in Article 10.

28

1.

2.

3.

4.

5.

Article 10

Quotas

Any  person  that  intends  to  place  new  vehicles  with  air  conditioning  systems
containing fluorinated gases with a global warming potential higher than 150, on the
market  from  1  January  2009  shall  be  allocated  quotas  representing  a  percentage  of
the vehicles placed on the market by that person in accordance with the following:

(a)

between  1  January  and  31  December  2009,  80%  of  vehicles  placed  on  the
market in 2007;

(b)

in 2010, 60% of vehicles placed on the market in 2008;

(c)

in 2011, 40%; of vehicles placed on the market in 2009;

(d)

in 2012, 20%; of vehicles placed on the market in 2010;

(e)

in 2013, 10%. of vehicles placed on the market in 2011.

Applications for first quota shall be submitted to the Commission by 30 June 2008,
including information on the number of new vehicles referred to in paragraph 1 that
were  placed  on  the  market  by  the  applicant.  The  applications  for  the  subsequent
quotas shall be submitted to the Commission by 30 June of each year.

The annual quota for each quota-holder shall be published by 30 September of each
year in the Official Journal of the European Union.

Allocation of a quota shall entitle the quota-holder to place a corresponding number
of  new  vehicles  referred  to  in  paragraph  1  on  the  market,  one  quota  unit
corresponding to one vehicle. The quotas shall be transferable between quota-holders
without  restrictions.  Transfers  shall  take  effect  through  notification  to  the
Commission of transfers in quota-holdings.

Any  quota-holder  that  places  new  vehicles  on  the  market  with  air  conditioning
systems containing no fluorinated gases or fluorinated gases with a global warming
potential  equal  to  or  lower  than  150  between  the  date  of  entry  into  force  of  this
Regulation and 31 December 2008 shall be entitled, on substantiated application, to a
corresponding increase in his quota for 2009.

Any quota-holder that places new vehicles on the market with enhanced HFC-134a
air conditioning systems between the date of entry into force of this Regulation and
31  December  2008  shall  be  entitled,  on  substantiated  application,  to  an  addition  to
his quotas for 2009 corresponding to the 50% of the number of these vehicles placed
on the market.

Each  quota-holder  shall  by  31  March  every  year  report  the  numbers  of  vehicles
referred to in paragraph 1 that were placed on the market during the preceding year,
together  with  supporting  evidence.  The  first  report  shall  be  submitted  to  the
Commission  by  31  March  2010.  Any  such  vehicle  containing  an  enhanced  HFC-
134a air conditioning system shall be considered to be half such a vehicle.

29

6.

7.

8.

9.

10.

11.

12.

13.

1.

2.

On  30  June  every  year,  quotas  held  by  each  quota-holder  corresponding  to  the
number of such vehicles placed by him on the market during the preceding year shall
be cancelled.

Quota-holders who exceed their quotas shall have their quotas for the following year
reduced by two units for each vehicle exceeding the quota.

Unused  quotas  shall  be  added  to  the  quotas  of  the  quota-holder  for  the  following
year.

On  30  July  2014,  the  name  of  any  quota  holder  that  has  exceeded  his  total  quota
holdings for the period 2009 to 2013 shall be published. Any such quota-holder shall
be subject to a financial penalty of 200 EUR in respect of each vehicle exceeding the
quota.

Quota-holders  with  quotas  remaining  after  2013  may  continue  to  place  vehicles
referred to in paragraph 1 on the market until 31 December 2018 in accordance with
paragraphs 5 to 9.

By way of derogation from paragraphs  2  to  10,  any  person  who places  vehicles  on
the  market below the small  series  and  end  of series limits  defined in Annex  XII  to
Council Directive 70/156/EEC shall be exempt from the requirements of this Article,
provided that the number of vehicles placed on the market is below these limits. Any
person that places a vehicle on the market that has been used for personal use shall
also be exempt from the requirements of this Article.

In order to accommodate new entrants, any person who did not place any vehicles on
the market during the period referred to in paragraph 1 (year X-2) shall be allocated
non-transferable  quotas  corresponding  to  the  relevant  percentage  listed  in  sub-
paragraphs (a) to (e) of vehicles placed  on the  market  by  him in the  year X, rather
than year X-2.

Without prejudice to the Treaty, a group of persons may apply to fulfil the provisions
of this Article as if they were a single person, specifying the period for which they
want to so act. In the event of non-compliance with the provisions of this Article they
shall be jointly and severally responsible.

Article 11

Review

On the basis of progress in potential containment or replacement of fluorinated gases
in air conditioning and  refrigeration systems contained in other  modes of transport,
the  Commission  shall  review  the  present  legislation  and  report  thereon  to  the
European Parliament and the Council by 31 December 2005 at the latest. The report
shall be accompanied where necessary by legislative proposals.

Within five years after the entry into force of this Regulation, the Commission shall
submit a report to the European Parliament and the Council based on the experience
of the application of this Regulation. In particular, the report shall:

30

– 

– 

– 

– 

– 

assess the impact of relevant provisions on emissions and projected emissions
of fluorinated gases and examine the cost-effectiveness of these provisions;

evaluate  the  training  and  certification  programmes  established  by  Member
States under Article 5(1);

assess  the  need  for  European  Community  standards  relating  to  the  control  of
emissions  of 
technical
requirements with respect to the design of products and equipment;

fluorinated  gases 

from  equipment, 

including 

assess the need for the development and dissemination of notes describing best
available 
the
prevention and minimisation of emissions of fluorinated gases;

techniques  and  best  environmental  practices  concerning 

include  an  overall  summary  of  the  development  of  the  state  of  technology,
experience  gained,  environmental  requirements  and  any  impacts  on  the
functioning of the internal market.

3.

1.

2.

3.

1.

2.

The report shall, where necessary, be accompanied by proposals for revision  of the
relevant provisions of this Regulation.

Article 12

Committee

The  Commission  shall  be  assisted  by  the  committee  instituted  by  Article  18  of
Regulation (EC) No 2037/2000.

Where reference is made to this paragraph, the procedure laid down in Article 4 of
Decision  1999/468/EC  shall  apply,  in  compliance  with  Article  7  and  Article  8
thereof.

The period provided for in Article 4(3) of Decision 1999/468/EC shall be set at one
month.

Article 13

Sanctions

Without  prejudice  to  Article  10,  Member  States  shall  lay  down  rules  on  sanctions
applicable  to  infringements  of  the  provisions  of  this  Regulation  and  shall  take  all
measures  necessary  to  ensure  that  such  rules  are  implemented.  The  sanctions
provided for shall be effective, proportionate and dissuasive.

Member  States  shall  notify  the  rules  on  sanctions  to  the  Commission  by  one  year
after the entry into force of this Regulation and shall also notify it without delay of
any subsequent amendment affecting those rules.

31

Article 14

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, […]

For the European Parliament
The President

For the Council
The President

32

ANNEX I

Fluorinated gases

Fluorinated gas

Chemical Formula

Global Warming Potential

Sulphur hexafluoride

SF6

Hydrofluorocarbons (HFCs):

HFC-23

HFC-32

HFC-41

HFC-43-10mee

HFC-125

HFC-134

HFC-134a

HFC-152a

HFC-143

HFC-143a

HFC-227ea

HFC-236fa

HFC-245ca

HFC-365mfc

Perfluorocarbons (PFCs)

Perfluoromethane

Perfluoroethane

Perfluoropropane

Perfluorobutane

Perfluoropentane

Perfluorohexane

Perfluorocyclobutane

CHF3

CH2F2

CH3F

C5H2F10

C2HF5

C2H2F4

CH2FCF3

C2H4F2

C2H3F3

C2H3F3

C3HF7

C3H2F6

C3H3F5

CF3CH2CF2CH3

CF4

C2F6

C3F8

C4F10

C5F12

C6F14

c-C4F8

33

23900

11700

650

150

1300

2800

1000

1300

140

300

3800

2900

6300

560

890

6500

9200

7000

7000

7500

7400

8700

ANNEX II

Fluorinated gas

Application

Date of prohibition

Fluorinated gases with a global
warming potential higher than
150

Air conditioning in
passenger cars and light
commercial vehicles

1 January 2009 – 31 December
2013*

Sulphur hexafluoride,
hydrofluorocarbons and
perfluorocarbons

 Hydrofluorocarbons and
perfluorocarbons

Perfluorocarbons

Sulphur hexafluoride,
hydrofluorocarbons and
perfluorocarbons

Non-refillable containers,
except for laboratory and
analytical use and metered
dose inhalers

Refrigerants in non-
confined direct-evaporation
systems

Fire protection systems and
fire extinguishers

Windows

One year after the date of entry
into force

Date of entry into force

Date of entry into force

Two years after the date of
entry into force

Sulphur hexafluoride

Footwear

Date of entry into force

Hydrofluorocarbons

One component foams,
except when required to
meet national safety
standards

One year after the entry into
force

Hydrofluorocarbons

Novelty aerosols

Three years after the entry into
force

Hydrofluorocarbons and
perfluorocarbons

Footwear

1 July 2006

* Progressive controls on placing on the market applicable in accordance with Article 10.

34

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Environment

Activit(y/ies): Policy Development

TITLE  OF  ACTION:  REGULATION  OF  THE  EUROPEAN  PARLIAMENT  AND  OF  THE  COUNCIL  ON

CERTAIN FLUORINATED GREENHOUSE GASES

1.

BUDGET LINE(S) + HEADING(S)

07-01-04-01

OVERALL FIGURES

Total allocation for action (Part B): EUR 2.736 million for commitment

Period of application:

2.

2.1.

2.2.

Starts progressively from 2004 and continues indefinitely.

2.3.

Overall multi-annual estimate of expenditure:

(a)

Schedule 
(financial intervention) (see point 6.1.1)

commitment 

of 

appropriations/payment 

appropriations

EUR million (to three decimal places)

2005

2006

2007

2008

Year
2004

Total

2009 and
subsequent
Years

0.100

0.170 0.170

0.170

0.170

0.170

0.950

0.100

0.170 0.170

0.170

0.170

0.170

0.950

Commitments

Payments

(b)

Technical 
(see point 6.1.2)

and  administrative  assistance  and 

support 

expenditure

Commitments

0.250

0.000

0.000

0.000

0.000

0.000

Payments

0.250

0.000

0.000

0.000

0.000

0.000

0.250

0.250

35

Subtotal a+b

Commitments

Payments

0.350

0.350

0.170

0.170

0.170

0.170

0.170

0.170

0.170

0.170

0.170

0.170

1.200

1.200

(c)

Overall  financial  impact  of  human  resources  and  other  administrative
expenditure (see points 7.2 and 7.3)

0.256

0.256

0.256

0.256

0.256

0.256

1.536

Commitments/
payments

TOTAL a+b+c

Commitments

0.606

0.426

0.426

0.426

0.426

0.426

Payments

0.606` 0.426

0.426

0.426

0.426

0.426

2.736

2.736

2.4.

Compatibility with financial programming and financial perspective

Proposal  is  compatible  with  existing  financial  programming  and  financial
perspective.

2.5.

Financial impact on revenue:

No financial implications.

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
contribution

Contributions
form  applicant
countries

in

Heading 
financial
perspective

Non-
compulsory

Differentiated NO

NO

NO

No 3

4.

LEGAL BASIS

Article 95

36

5.

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

5.1.1. Objectives pursued

The legislative proposal would establish a framework to regulate fluorinated
gases  across  the  whole  Community.  The  regulation  includes  provisions  to
improve  the  containment  of  fluorinated  gases  and  to  report  data  on  these
gases. In addition, the regulation would place marketing and use restrictions
on  fluorinated  gases  in  certain  applications.  This  regulation  will  contribute
towards the cost-effective fulfilment of the international commitments of the
European  Community  and  its  Member  States  under  the  United  Nations
Framework Convention on Climate Change and the Kyoto Protocol.

The reporting provisions will require the Commission to take steps to protect
the  confidentiality  of  data  and  this  can  be  achieved  by  building  on  the
existing independent audit system already established under Regulation (EC)
2037/2000  on  substances  that  deplete  the  ozone  layer.  As  audit  work  for
ozone depleting substances reduces in line with the phase-out, resources can
be  allocated  to  the  proposed  audit  work  for  fluorinated  gases  meaning  no
additional costs fall on the Community budget.

For  air-conditioners  used  in  passenger  and  light  commercial  vehicles,  the
proposal  provides  for  a  flexible  system  phasing  out  the  use  of  high  global
warming  fluorinated  gases  through  the  use  of  transferable  quotas.  The
detailed functioning of the system is left to the companies placing mobile air
conditioners  to  the  market.  Thus,  if  the  companies  wish  to  transfer  quotas,
the  costs  of  establishing  the  quota  system  would  be  largely  borne  by
themselves. However, the proposal foresees that the Commission shall have a
role to issue quotas for mobile air conditioners which use refrigerants with a
high  global  warming  potential  during  2009-2013.  It  will  also  receive  the
verified reports of operators and cancel quotas. The major element of the cost
to the Community budget is expected to be incurred in respect of establishing
the  technical  specifications  of  the  transferable  quota  system  and  to  verify
compliance.

5.1.2. Measures taken in connection with ex ante evaluation

None.

37

5.2.

Action envisaged and budget intervention arrangements

For  data  reporting  the  proposed  action  is  to  ensure  that  the  commercial
sensitivity  of  data  on  fluorinated  gases  is  protected,  and  that  the  data  are
presented to the commission in a clear and transparent manner.

The  proposed  action  is  to  ensure  that  there  no  irregularities  occur  in  the
application  and  reporting  of  transferable  quotas  in  the  case  of  air
conditioning  equipment  for  passenger  cars  and  light  commercial  vehicles.
The reason for this is not financial, but primarily environmental. The records
of  quotas,  which  represent  the  entitlement  to  place  on  the  market  air
conditioners containing fluorinated gases with high global warming potential
form the basis of compliance and thus need to be verified.

5.3.

Methods of implementation

For data reporting, it is envisaged that this will be made direct to the auditors,
but  the  precise  method  and  format  for  reporting  will  be  determined  in
agreement with the Management Committee.

For  vehicle  air-conditioners,  the  Commission  would  receive  the  application
for transferable quotas and – based on reports from the companies placing air
conditioning systems on the market –verify the compliance.

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B - (over the entire programming period)

6.1.1.

Financial intervention

Commitments (in EUR million to three decimal places)

Breakdown

2004

2005

2006

2007

2008

Total

2009 and
subsequent
Years

Action  1:  Appointing
independent  auditor  to
oversee 
annual  data
reporting

Action  2:  Development
of 
quota
management system  for
mobile air conditioners

the 

0.050

Action  3:  Running  the
management
quota 
system

0.020

0.020

0.020

0.020

0.020

0.100

0.050

0.050

0.050

0.050

0.050

0.050

0.250

38

Action  4:  Development
of 
of
the 
reporting

format 

0.050

Action  5:  Monitoring
compliance  based  on
reports

0.050

0.100

0.100

0.100

0.100

0.100

0.500

TOTAL

0.100

0.170

0.170

0.170

0.170

0.170

0.950

6.1.2.

Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure
(commitment appropriations)

2004

2005

2006

2007

2008

2009

Total

(1) Technical 

and
administrative assistance

(a) Technical  assistance

offices

(b) Other  technical  and

administrative
assistance:

– intra muros:

– extra  muros:  of
which 
for
construction  and
maintenance 
of
computerised
management
systems

Subtotal 1

39

(2) Support expenditure

(a)Studies

0.250

(b)Meetings 
experts

of

(c)Information  and

publications

Subtotal 2

TOTAL

0.250

0.250

0.250

0.250

0.250

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Description 
deriving from the action

of 

tasks

Types of post

Staff to be assigned to management
of  the  action  using  existing  and/or
additional resources

Total

of
Number 
permanent posts

of
Number 
temporary posts

or

Officials 
temporary
staff

A

B

C

Other 
resources

human

Total

1

1

2

1

1

2

40

7.2.

Overall financial impact of human resources

Type of human resources

Amount (EUR) Method of calculation *

Officials

Temporary staff

Other human resources

(specify budget line)

216 000

EUR 108 000 per official

Total

216 000

The amounts are total expenditure for twelve months.

7.3.

Other administrative expenditure deriving from the action

Budget line

(number and heading)

Overall allocation (Title A7)

A0701 – Missions

A07030 – Meetings

A07031 – Compulsory committees 1

A07032 – Non-compulsory committees

A07040 – Conferences

A0705 – Studies and consultations

Other expenditure (specify)

Information systems (A-5001/A-4300)

Other expenditure - Part A (specify)

Amount (EUR)

Method of calculation

10 000

Estimate.

-

30 000

-

Management  Committee
Regulation
under 
2037/2000  meeting 
2
times 
year
a 
(reimbursement  of  travel
of 
per
Member  State):  estimated
expense.

delegate 

one 

Total

40 000

1  The  Management  Committee  for  this  regulation  is  the  same  as  for
Regulation 2037/2000. Thus, issues under both regulation will be discussed
in  the  same  meeting  and  reimbursement  of  travel  costs  is  made  only  once.
For clarity these expenses have been shown as memo item.

41

The amounts are total expenditure for twelve months.

I.

II.

Annual total (7.2 + 7.3)

Duration of action

III.

Total cost of action (I x II)

EUR 256 000

No other particular  staff resources  are  envisaged  for  the  Commission.  Staff
resources should be available from within existing resources.

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

By  the  end  of  2005,  the  coverage  of  the  regulation  in  other  modes  of
transport will be reviewed.

8.2.

Arrangements and schedule for the planned evaluation

Within  five  years  after  the  entry  into  force  of  this  Regulation,  the
Commission will report about the progress. This report may be accompanied
by proposals for revision of the relevant provisions of this Regulation.

9.

ANTI-FRAUD MEASURES

Usual Commission rules applicable.

42