Document de travail des services de la Commission - Réexamen du règlement (CE) n° 2037/2000 relatif à des substances qui appauvrissent la couche d'ozone : «mieux légiférer en mettant à profit vingt années d'expérience» - Résumé de l'analyse d'impact accompagnant la proposition de règlement du Parlement européen et du Conseil relatif à des substances qui appauvrissent la couche d'ozone (refonte) [COM(2008) 505 final] [SEC(2008) 2366]
Date: 2008-08-01
Institutions: European Commission
Subjects: Intergovernmental Convention (EU), chemical product, dangerous substance, impact study, import restriction, ozone, production quota, stratospheric pollutant

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 1.8.2008 
SEC(2008) 2367 final 

COMMISSION STAFF WORKING DOCUMENT 

Reviewing Regulation (EC) No 2037/2000 on substances that deplete the 
ozone layer  

"Better regulation building on 20 years of success"  

Summary of the impact assessment accompanying the proposal for a 
Regulation of the European Parliament and of the Council on substances 
that deplete the ozone layer (recast) 

[COM(2008) 505 final] 
[SEC(2008) 2366] 

EN 

   EN 

 
 
 
 
 
 
 
COMMISSION STAFF WORKING DOCUMENT 

Reviewing Regulation (EC) No 2037/2000 on substances that deplete the 
ozone layer  
"Better regulation building on 20 years of success"  
Summary of the impact assessment  
accompanying the proposal for a Regulation of the European Parliament 
and of the Council on substances that deplete the ozone layer (recast) 

[COM(2008) 505 final] 
[SEC(2008) 2366] 

EN 

2 

   EN 

 
 
 
1. 

INTRODUCTION 

This  document  provides  an  executive  summary  of 
impact  assessment 
accompanying  the  recast  of  Regulation  (EC)  No  2037/2000  on  substances  that 
deplete the ozone layer (hereinafter referred to as “the Regulation”)1.  

the 

2. 

BACKGROUND 

The stratospheric ozone layer shields life on earth from harmful ultraviolet radiation 
from  the  sun.  In  the  early  1980s,  scientists  observed  a  significant  decrease  in  the 
concentration of ozone in the stratosphere over the Antarctic, which became widely 
known as the “ozone hole”. At its peak – during spring in the late 1990s – the ozone 
hole  was  most  severe  around  the  poles,  although  concentrations  were  significantly 
reduced  in  other  places  as  well.  Increased  UV  radiation  has  an  adverse  impact  on 
humans (skin cancers and cataracts) and ecosystems. 

As early as 1987, governments agreed on the Montreal Protocol on Substances that 
Deplete  the  Ozone  Layer,  thereby  starting  the  phase-out  of  ozone-depleting 
substances (ODS) in all signatories following a set timetable. In 2007, as the Parties 
(including  the  European  Community)  celebrated  its  twentieth  anniversary,  the 
Montreal  Protocol  was  widely  hailed  as  one  of  the  most  successful  of  all 
international environmental agreements. By then, all 191 Parties had achieved a 95% 
reduction in consumption of ODS compared with the baselines set.2 Reductions were 
highest (99.2%) in industrialised countries and somewhat lower (80%) in developing 
countries.  Reductions  were  achieved  on  the  basis  of  agreed  consumption  and 
production freezes and subsequent time-bound step-by-step reductions.3 

In  its  latest  report,  released  in  2007,  the  Scientific  Assessment  Panel  (SAP) 
established  under  the  Montreal  Protocol  confirmed  that  the  ozone  layer  is  slowly 
recovering thanks to the control measures introduced by the Protocol – albeit 10 to 
15 years behind the projections in its earlier 2002 report. Average and Arctic ozone 
levels are expected to recover by 2050 and the Antarctic ozone hole by between 2060 
and 2075.  

According  to  UNEP,  controls  introduced  under  the  Montreal  Protocol  will  avoid 
millions  of  fatal  skin  cancers  and  tens  of  millions  of  non-fatal  skin  cancers  and 
cataracts  worldwide.  The  US  authorities  estimate  that  more  than  6.3  million  skin 
cancers will be avoided  in  the  USA  alone. Furthermore, the  controls  introduced  by 
the  Montreal  Protocol  will  help  to  avoid  greenhouse  gas  emissions  equivalent  to 
more  than  100  billion  tonnes  of  CO2  between  1990  and  2010.  By  2010,  GWP-

1 
2 

3 

See SEC(2008) xxx and COM(2008) xxx 
Article 1 of the Montreal Protocol defines "Consumption" as production plus imports minus exports of 
controlled substances. 
Successful reductions in developing countries have been made possible by the Multilateral Fund which 
to  date  has  channelled  about  US$2.4  billion  into  technology  transfer  and  related  capacity-building 
projects.  Timetables  for  developing  countries  typically  lag  a  few  years  behind  those  of  industrialised 
countries. 

EN 

3 

   EN 

 
                                                 
weighted  ODS  emissions  will  account  for  less  than  5%  of  global  projected  CO2 
emissions compared with nearly 50% in 1990.4  

3. 

REGULATION (EC) NO 2037/2000 ON SUBSTANCES THAT DEPLETE THE OZONE 
LAYER  

The Regulation is the European Communities’ main instrument for implementing the 
Montreal Protocol. The closely matching and mutually reinforcing international and 
EU policy frameworks have an impressive track record, showing an almost complete 
phase-out  of  consumption  and  production  of  the  controlled  ODS  (see  the  figure 
below).  

EU ODS Production and Consumption (Baseline till 2006)

700000

600000

500000

400000

300000

200000

100000

s
e
n
n
o
T
P
D
O

0

Baseline

-100000

Consumption

Production

1986

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

To  date,  the  EC  has  phased  out  more  than  99%  of  its  baseline  consumption  and 
production of ODS. By 2010, the EC will have fully phased out controlled ODS uses, 
save  for  approximately  1  200  ODP  tonnes  per  year  .  This  figure  of  1  200  tonnes 
includes  an  estimated  1  000  tonnes  attributable  to  recycled  or  reclaimed  HCFCs 
which  will  be  banned  from  2015  on,  leaving  less  than  200  ODP  tonnes  per  year 
defined  as  consumption  under  the  Montreal  Protocol  (compared  with  baseline 
consumption  levels  of  400  000  tonnes).  In  addition,  remaining  “emissive  uses”  of 
ODS  covered  by  the  Regulation  (but  not  yet  counted  as  consumption  under  the 
Protocol) will add up to an estimated 1 400 ODP tonnes for the period beyond 2010 
(assuming  that  current  levels  are  maintained  in  the  absence  of  further  measures). 
ODS production in the EC will be down to less than 4 000 ODP tonnes per year by 
2010 (compared with baseline production levels of 700 000 tonnes).  

4. 

THE REVIEW PROCESS 

This review is included in the 2008 Commission Legislative and Work Programme 
(CLWP) under the heading “Simplification”. Preparations started at the end of 2006 

4 

These big contributions to climate change are due to the very high global warming potential (GWP) of 
ozone-depleting substances (some of which are more than 14 000 times more potent than CO2). 

EN 

4 

   EN 

 
 
  
                                                 
with  the  launching  of  an  extensive  survey  of  Member  States’  authorities  and  other 
relevant  agencies,  companies,  industries  and  non-governmental  organisations.  The 
survey  showed  general  satisfaction  with  the  effectiveness  of  the  Regulation.  The 
main comments related to the Regulation’s complexity and a desire for simplification 
and clarification.  

Based  on  the  above-mentioned  input  and  other  expert  sources  (e.g.  latest  analyses 
and  recommendations  from  the  Montreal  Protocol’s  Scientific,  Technical  and 
Economic  Assessment  Panels),  policy  options  and  associated  impact  assessments 
were identified and analysed from January 2008 onwards.  

5. 

ADDRESSING THE KEY PROBLEMS 

In  its  2007  report,  the  Montreal  Protocol’s  Scientific  Assessment  Panel  (SAP) 
warned  the  Parties  that  despite  the  successes,  continued  vigilance  was  required  to 
keep  to  the  newly  projected  timetable  for  recovery  of  the  ozone  layer,  also  taking 
account of the remaining uncertainties, notably about the impact of climate change. 
Key challenges included the need to significantly reduce current levels of exempted 
use  by  2015  (including  use  of  methyl  bromide  for  quarantine  and  pre-shipment 
purposes), to make sure that ODS “banked” in products and equipment would not be 
released into the atmosphere and to avoid the marketing of new ODS (see section 6.3 
below).  At  EU  level,  additional  problems  include  regulatory  and  associated 
administrative  complexity,  and  the  need  for  full  compliance  with  the  Montreal 
Protocol,  whilst  avoiding  the  risk  of  illegal  trade  and  use  of  ODS.  Following  SAP 
recommendations  and  stakeholders’  suggestions  for  improvements,  added  to  the 
Commission’s  own  analysis,  the  following  general  and  specific  objectives  for 
addressing the remaining problems were identified.  

The general long-term objective pursued by the review remains timely recovery and 
subsequent  protection  of  the  ozone  layer  to  avoid  the  adverse  impacts,  notably  on 
human  health  and  ecosystems.  The  associated  short-  and  medium-term  objective, 
however, is to simplify the regulatory framework, whilst at the same time reducing 
any unnecessary administrative burden, in line with the Commission’s commitment 
to develop and implement better regulation .  

In  order  to  deliver  these  general  objectives,  the  following  specific  objectives  were 
identified,  notably  to  address  the  problems  outlined  above  whilst  building  on  the 
acknowledged strengths of the Regulation.  

(1) 

Achieving  better  and  simpler  regulation  by  reducing  the  administrative 
burden: 

(a)  clarifying and simplifying the Regulation; 

(b)  streamlining reporting and the associated administrative burden; 

(c)  updating  the  exemption  arrangements  and  the  associated  administrative 

processes. 

(2) 

Ensuring  continued  compliance  by  means  of  full  implementation  of  the 
Montreal Protocol as amended in 2007 and stronger enforcement: 

EN 

5 

   EN 

 
(a)  implementing Decision XIX/6 to accelerate the phase-out of HCFCs; 

(b)  ensuring EC compliance and preventing illegal and harmful trade.  

(3) 

Addressing  future  challenges  by  tackling  ODS  not  yet  controlled  under  the 
Montreal Protocol: 

(a)  ODS contained (or “banked”) in products and equipment; 

(b)  new and short-lived ODS; 

(c)  use of methyl bromide for quarantine and pre-shipment purposes. 

6. 

POLICY OPTIONS AND THEIR IMPACT 

A  wide  range  of  policy  options  and  associated  impact  assessments  were  identified 
and  analysed,  based  on  the  above-mentioned  input  and  other  expert  sources 
(e.g. latest  analyses  and  recommendations  from  the  Montreal  Protocol’s  Scientific, 
Technical  and  Economic  Assessment  Panels).  Due  care  was  taken  to  explore  the 
widest  possible  range  of  simplification  options  to  improve  clarity  and  therefore, 
ultimately,  implementation  of  the  Regulation  whilst  reducing  any  unnecessary 
administrative  burden.  With  the  latter  in  mind,  the  review  also  considered  non-
regulatory  measures,  e.g.  possible  streamlining  of  ODS  reporting  and  monitoring 
procedures.  

The  options  of  leaving  the  Regulation  unchanged  (business  as  usual)  or  even  of 
withdrawing it were duly considered but rejected, inter alia on the grounds that they 
would put the EC in non-compliance with the Montreal Protocol and would not allow 
it to pursue its simplification objective. 

The analysis covered the three broad categories of policy measures outlined below.  

The  first  important  category  of  policy  options  which  emerged  related  to  the 
1. 
simplification objective, building on the progress made on phasing out ODS to date 
and  the  opportunities  to  remove  expired  provisions.  Key  options  that  were  chosen 
include: 

–  removing  the  provisions  and  associated  procedures  relating  to  essential  uses  of 
CFCs,  critical  uses  of  methyl  bromide  and  other  exemptions  for  CFCs  and 
HCFCs;  

–  simplifying  the  cap  on  use  of  methyl  bromide  for  quarantine  and  pre-shipment 
(QPS) purposes whilst lowering the quantitative limit from 607 ODP tonnes to the 
current level of a maximum of 300 tonnes;  

–  streamlining  reporting  (a  recurring  request  from  Member  States),  even  though 
there  was  little  room  for  manoeuvre  since  most,  if  not  all,  of  the  reporting 
obligations stem from the Protocol rather than the Regulation; 

–  ending  exemptions  which  impose  significant  administrative  costs  on  a  small 

number of players in return for small benefits; 

EN 

6 

   EN 

 
–  clarifying  definitions  and  other  legal  drafting  improvements,  thereby  (together 
with the previous measures) meeting the demand voiced by many stakeholders for 
a simpler, more structured legal act. 

This  package  of  simplification  options  is  expected  to  yield  cumulative  savings  in 
administrative costs estimated at nearly €4 million over the period up to 2020. The 
associated environmental impact is assumed to be positive (albeit small and difficult 
to  quantify),  as  the  revised  Regulation  is  expected  to  be  easier  to  implement  and 
enforce,  including  by  SMEs.  For  the  same  reason,  small  net  direct  economic  gains 
for industry and users of ODS could be expected, notably for SMEs which have less 
access to specialist knowledge for implementing the Regulation.  

2.  A  second  category  of  options  emerged  in  line  with  the  need  to  ensure 
continued compliance with the Montreal Protocol. Preferred options included:  

–  bringing the phase-out date for production of HCFCs forward from 2025 to 2020 
to align the Regulation with the recent Decision XIX/6 to accelerate the phase-out 
of HCFCs;  

–  simplifying  and  tightening  up  enforcement  of  the  Regulation  to  prevent  illegal 
trade  and  use  of  ODS  in  the  EU,  with  the  aid  of  more  effective  provisions  on 
Member  States’  inspection  requirements  (i.e.  moving  from  “random”  to  “risk-
based”  inspection),  measured  labelling  requirements  to  avoid  illegal  trade  (also 
within  the  EU)  and  selected  measures  to  step  up  monitoring  of  imports  and 
exports of ODS. 

These policy options will avoid excessive administrative costs and ensure continued 
compliance with the Montreal Protocol, notably by preventing illegal trade, thereby 
also meeting the concerns raised by industry during the survey.  

To ensure that the remaining challenges can be adequately addressed in future, 

3. 
the focus was on the three following areas: 

(a) 

Release of “banked” ODS/GHG emissions into the atmosphere – Because the 
Protocol has been focusing on gradually banning consumption and production 
of  ODS,  significant  amounts  of  ODS  remain  stored  or  “banked”  in  products 
and  equipment  (e.g.  in  insulation  foams,  refrigerants  and  air-conditioning 
systems).  Considering  the  high  global  warming  potential  (GWP)  of  these 
banked  ODS,  failure  to  recover  and  ultimately  destroy  them  also  poses 
significant risks of global warming. In 2010, ODS banks in the EU could add 
up to approximately 700 000 ODP tonnes (5 billion tonnes of CO2eq), although 
experts  acknowledge  a  large  degree  of  uncertainty  due  to  the  limited 
total  around 
measurement  data  available.  Emissions  could  potentially 
24 000 ODP tonnes (or 170 million tonnes of CO2eq) per annum over the period 
2005-15.5 A number of measures to tighten up the provisions on recovery and 
destruction  of  ODS  contained  in  products  and  equipment  are  proposed  for 
inclusion in the Regulation. They could yield environmental benefits of up to 

5 

Estimates were derived by extrapolating the best available global estimates contained in a 2005 TEAP 
report, according to which global banks totalled 3.5 million ODP tonnes (20 billion tonnes of CO2eq) in 
2002 with projections pointing to 2 million ODP tonnes for 2015 (13.4 billion tonnes of CO2eq).  

EN 

7 

   EN 

 
                                                 
14 000 ODP tonnes, or 112 million tonnes of CO2eq, over 10 years. In addition, 
implementation of the EU Waste Framework Directive and of the Waste from 
Electric  and  Electronic  Equipment  (“WEEE”)  Directive  is  being  improved  to 
capture ODS/GHG emissions, potentially yielding additional benefits of up to 
34  000  ODP  tonnes  (270  million  tonnes  of  CO2eq).  Furthermore,  considering 
the  large  variability  in  costs  for  the  various  products  (ranging  from  €4.5  for 
simple destruction to €100 per kg of ODP  for recovery and destruction of ODS 
contained  in  insulation  foams),  follow-up  action  will  focus  on  smart  and 
measured  incentives  to  increase  (significantly)  the  volume  of  products  and 
equipment presented for recovery and recycling or destruction.6  

(b)  Marketing new ODS – The 2007 report by the Scientific Assessment Panel set 
up under the Protocol revealed new scientific evidence that the ODP of certain 
chemical  substances  not  currently  controlled  by  the  Protocol  (e.g. nPB)  is 
substantially  higher  and  recommended  that  Parties  consider  certain  control 
measures  to  avoid  reversing  the  progress  made  to  date.  Currently,  EC 
emissions  of  new  ODS  are  estimated  to  total  less  than  300 ODP  tonnes  per 
year.  To  avoid  expanding  markets  that  would  have  to  be  tackled  later, 
precautionary  measures  are  proposed  in  the  form  of  listing  new  ODS  in  an 
Annex to the Regulation (e.g. based on companies’ disclosures under REACH) 
and  requiring  producers  and  importers  of  such  ODS  to  report  the  volumes 
traded. Although effective  for raising awareness amongst consumers  of  ODS, 
these measures are not expected to give rise to any significant economic impact 
on industry, which is expected to continue to move away from ODS. 

(c) 

Reducing use of methyl bromide for QPS activities – Considering that methyl 
bromide  is  a  toxic  substance  that  causes  significant  health  hazards  (which  is 
why the Regulation is already more stringent than the Protocol), the preferred 
option  is  to  make  recapture  mandatory  up  to  2015  and  to  phase  out  the 
substance  thereafter.  This  measure  will  allow  a  transition  phase,  where 
alternatives such as heat treatment are likely to be more competitive in many 
situations, followed by phasing-out when more alternatives are available. The 
total cost to industry would be €9.5 million over the period 2010-2020, saving 
methyl bromide equivalent to 2000 ODP tonnes. 

7. 

CONCLUSIONS 

The  policy  options  proposed  reflect  a  deep  commitment  to  simpler  and  better 
regulation based on sound analysis. The resultant package will lead to a significantly 
simplified  regulatory  text  whilst  simultaneously  offering  guarantees  for  locking  in 
and  consolidating  the  progress  made  to  date  on  the  ODS  phase-out.  Although  the 
successful  phase-out  has  already  reduced  the  administrative  burden  associated  with 
implementation of the Regulation, additional net savings for the total package (after 
also taking account of the few measures that may lead to increases in administrative 
costs)  will  total  nearly  €3  million,  w ith  about  €2  million  accruing  to  industry, 
€0.7 million  to  Member  State  authorities 
and  the  remainder  to  the  European 
Commission.  The  package  will  not  lead  to  significant  net  direct  incremental  costs. 

6 

E.g. standards linked to offset or deposit systems, funding destruction from regional funds, etc. 

EN 

8 

   EN 

 
                                                 
The  cumulative  additional  direct  economic  impact  is  expected  to  stay  below  €13 
million, mainly related to measures to reduce methyl bromide use for QPS purposes7. 
Simplification  is  expected  to  be  particularly  beneficial  to  SMEs  which  have  less 
access to specialist knowledge for implementing the Regulation. 

The  most  tangible  environmental  benefits  from  the  package  are  related  to  reduced 
consumption  and  increased recovery mostly stemming from policy action on banks 
and QPS activities. These could add up to a net gain of 16 000 ODP tonnes, or 112 
million  tonnes  of  CO2eq.8
  Further  translation  in  terms  of  reduced  cancer  risk  would 
not be meaningful considering the small quantities involved compared to the global 
scale of the problem, and the large uncertainties around the dose-response function 
linking a unit ODP tonne to the final human and environmental health impacts. This 
net  reduction  in  ODP  emissions  would  however  contribute  to  reducing  the  risk  of 
further  depletion  of  the  ozone  layer,  whilst  also  bringing  real  climate  change 
benefits.  Details,  including  a  full  list  of  all  the  options  considered  and  their  impact 
(including rejected options), are available in the full impact assessment.  

Action  will  be  stepped  up  to  finally  phase  out  use  of  ODS  where  alternatives  are 
expected  to  be  available  soon.  Such  action  is  outlined  in  the  Communication 
accompanying the proposal to recast the Regulation. In parallel, as a follow-up to this 
review,  the  Commission  will  work  closely  with  Member  States  to  tackle  the  key 
remaining  issue  of  banked  ODS.  Such  action  may  yield  significant  additional 
environmental  benefits.  Likewise,  the  Commission  will  work  closely  with  Member 
States  and  other  Parties  to  the  Protocol  to  reduce  remaining  uses  of  ODS,  notably 
those related to QPS activities, and to avoid the marketing of new ODS.  

7 

8 

Costs  would  be  significantly  lower  if  taking  into  account  the  likely  decision  to  deregister  Methyl 
Bromide on health grounds.  
In  terms  of  global  warming  potential,  this  is  equivalent  to  about  2%  of  greenhouse  gas  emissions  in 
1990. For comparison only, reductions are equivalent to 1/10th of the reductions necessary to achieve 
the 2020 objective of cutting greenhouse gas emissions by 20% under the climate and energy package.  

EN 

9 

   EN