Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - Completing the phase-out of substances that deplete the ozone layer: better regulation building on 20 years of success {SEC(2008) 2366 final} {SEC(2008) 2367 final}
Date: 2008-08-01
Institutions: European Commission
Subjects: drafting of EU law, environmental protection, ozone, stratospheric pollutant

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 1.8.2008 
COM(2008) 505 final 

2008/0165 (COD) 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND 
THE COMMITTEE OF THE REGIONS  

Completing the phase-out of substances that deplete the ozone layer 
Better regulation building on 20 years of success 

PART 1 

{SEC(2008) 2366 final} 
{SEC(2008) 2367 final} 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND 
THE COMMITTEE OF THE REGIONS  

Completing the phase-out of substances that deplete the ozone layer 
Better regulation building on 20 years of success 

1. 

INTRODUCTION 

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 
human health, e.g. by increasing the incidence of skin cancers and cataracts, and on 
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,  the  Parties 
(including  the  European  Community)  celebrated  the  twentieth  anniversary  of  the 
Montreal  Protocol,  hailing  it  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.1  Reductions  were  highest 
(99.2%)  in  industrialised  countries  and  somewhat  lower  (80%)  in  developing 
countries.2 

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  now  expected  to  recover  by  2050  and  the  Antarctic  ozone  hole  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.  Furthermore,  these  controls  will  help  to  avoid  greenhouse  gas 
emissions equivalent to more than 100 billion tonnes of CO2 between 1990 and 2010. 

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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. 

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By  2010,  ODS  emissions  will  account  for  less  than  5%  of  global  projected  CO2 
emissions compared with nearly 50% in 1990.3  

In  its  2007  report,  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 remaining challenges are: 

–  Release  of  “banked”  ODS/GHG  emissions  into  the  atmosphere  –  Because  the 
Protocol  has  been  focusing  on  banning  ODS  production,  significant  amounts  of 
ODS  remain  stored  or  “banked”  in  products  and  equipment  (e.g.  in  insulation 
foams, refrigerants and air-conditioning systems). Estimates suggest that by 2015 
these  global  banks  will  add  up  to  2  million  ozone-depleting  potential  (ODP) 
tonnes or 13.4 billion tonnes of CO2eq – hence the need for further action.  

–  Exempted uses of ODS – The Protocol provides for a degree of flexibility on use 
of controlled ODS, e.g. where no technically or economically viable alternatives 
are  yet  available  or  for  certain  applications,  such  as  use  of  methyl  bromide  for 
quarantine and pre-shipment purposes or feedstock. SAP warned the Parties that 
by  2015  such  exempted  uses  need  to  be  reduced  significantly  from  their  current 
levels  of  around  20  000  ODP  tonnes  per  annum  to  avoid  slipping  a  few  more 
years behind the timetable for recovery of the ozone layer. 

–  New  ODS  –  New  scientific  evidence  has  revealed  that  the  ODP  of  certain 
chemical  substances  not  currently  controlled  by  the  Protocol  is  substantially 
higher, whilst marketing of these substances is growing rapidly. 

The  SAP  also  expressed  serious  concerns  about  the  faster  growth  of  production  of 
hydrochlorofluorocarbons  (HCFCs)  ahead  of  the  full  phase-out  in  2040  in 
developing countries. However, the Parties acted swiftly by agreeing immediately, in 
2007, on an adjustment to the Protocol on accelerated HCFC phase-out schedules to 
achieve  reductions  of  up  to  1 million  ODP  tonnes  and  18  billion  tonnes  of  CO2eq 
globally.4  

These global challenges (albeit not applying in full to the EU) set the background for 
this proposal by the Commission and its underlying analysis. 

2. 

CURRENT SITUATION IN THE EU 

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.5 The closely matching and mutually reinforcing international and 

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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). 
Cf. Decision XIX/6 of the 19th meeting of the Parties to the Protocol (2007, Montreal) to accelerate the 
phase-out of HCFCs. Note that the potential greenhouse gas (GHG) reductions depend on containment 
of emissions from present alternatives (e.g. for refrigerants) with relatively high GWP (such as HFCs) 
and/or introduction of alternatives with low GWP. These climate change considerations are embedded 
in the decisions taken by the Parties on this matter. 
The Regulation also amends previous Regulations which have been in force for almost two decades. 

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EU policy frameworks have an impressive track record, showing an almost complete 
phase-out of consumption and production of the controlled ODS.  

To date, the EC has phased out more than 99% of its baseline consumption of ODS. 
By 2010, the EC will have fully phased out controlled ODS consumption, save for a 
few hundred ODP tonnes per year, compared with baseline levels of 400 000 tonnes. 
ODS production in the EC for uses controlled by the Protocol and the Regulation is 
set to end by 2025 and is currently decreasing to around 4 000 ODP tonnes per year 
in  2010  compared  with  baseline  levels  of  700  000  tonnes.  With  the  accelerated 
HCFC  phase-out  schedule  adopted  by  Parties  in  2007,  the  Regulation  needs  to  be 
realigned to bring forward the production phase-out from 2025, as currently provided 
for  in  the  Regulation,  to  2020.  In  view  of  the  upcoming  phase-out  of  the  use  of 
"virgin" HCFCs, measures need to be strengthened to reduce the risk of illegal trade 
and use of ODS. 

ODS banks in the EU could add up to approximately 700 000 ODP tonnes in 2010, 
equivalent to 5 billion tonnes of CO2, although the current estimates are subject to a 
large degree of uncertainty. Annual emissions over the period 2005-15 could range 
up to 24 000 ODP tonnes per annum or up to 170 million tonnes of CO2eq. The bans 
on  use  and  the  provisions  on  recycling  and destruction contained in the Regulation 
and, most importantly, similar provisions in the EU Waste Framework Directive and 
the  Waste  from  Electric  and  Electronic  Equipment  Directive  could  capture  most  of 
these  emissions,  even  though  current  EU  waste  recycling  and  recovery  rates  are 
acknowledged to be very low.  

Emissions of new ODS in the EU are currently estimated to total less than 300 ODP 
tonnes per year, albeit growing steadily. In the EU critical and essential uses of ODS 
have  ceased  in  all  but  a  few  cases,  whilst  exempted  uses  of  methyl  bromide  for 
quarantine  and  pre-shipment  (QPS)  activities  are  expected  to  remain  stable  at  less 
than 300 ODP tonnes per year. 

Administrative  expenditure  by  all  involved  in  implementing  the  Regulation  has 
fallen  significantly  in  line  with  the  steady  reduction  in  the  number  of  exemption 
decisions required  due to the continuous  development and marketing of  technically 
and economically viable alternatives. A stakeholder survey conducted to support this 
proposal confirmed the general satisfaction with the effectiveness and efficiency of 
the  existing  regulatory  framework,  even  though  it  was  commonly  recognised  as 
complex.  

3. 

TOWARDS BETTER REGULATION 

The European institutions’ commitment to better regulation, combined with the EU’s 
20  years’  experience  in  protecting  the  ozone  layer,  created  a  timely  opportunity  to 
review the Regulation on substances that deplete the ozone layer.6  

The main objectives of this revision are: (1) to simplify and recast Regulation (EC) 
No 2037/2000  whilst  at  the  same  time  reducing  any  unnecessary  administrative 

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This review is included in the 2008 Commission Legislative and Work Programme (CLWP) under the 
heading “Simplification”. 

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burden in line with the Commission’s commitment to better regulation; (2) to ensure 
compliance with the Montreal Protocol as adjusted in 2007; and (3) to make sure that 
the  future  challenges  outlined  above  are  addressed,  in  order  to  ensure  the  timely 
recovery  of  the  ozone  layer  and  to  avoid  adverse  impacts  on  human  health  and 
ecosystems. 

In the present context, at both global and EU level, a range of areas for improvement 
were  discussed  and  assessed  in  detail  during  the  review  of  the  Regulation  and  the 
associated  impact  assessment.7  As  a  result,  the  Commission  proposes  to  simplify, 
streamline  and  enhance  the  Regulation  to  protect  the  ozone  layer  whilst  taking  a 
number of measures in parallel, including at international level.  

3.1. 

Revising the existing legislation 

The review identified ample opportunities for simplifying the text of the Regulation.8 
Some of the main amendments to simplify it consist of removing the now obsolete 
provisions  and  associated  procedures  for  essential  and  critical  uses  of  ODS  and  of 
streamlining  reporting  where  possible,  while  taking  due  account  of  the  EU’s 
obligations stemming from the Protocol.  

The  review  also  served  to  align  the  Regulation  with  the  recent  Decision  XIX/6  to 
accelerate the phase-out of HCFCs, as adopted by the Parties to the Protocol in 2007. 
The  phase-out  date  for  production  of  HCFCs  will  therefore  be  brought  forward  to 
beginning  of  2020.  The  Commission  also  proposes  some  measured  amendments  to 
facilitate the complex task of enforcement, notably by customs authorities, to prevent 
illegal trade and use of ODS in the EU. Such measures include introducing selected 
labelling  requirements  and  ending  little-used  exemptions  which  impose  significant 
administrative costs on a small number of players for rapidly diminishing benefits.  

To enable the EU to tackle the remaining challenges, some measured strengthening 
of  the  legislation  was  required,  albeit  at  limited  costs  whilst  often  offering  further 
administrative simplification.  

To  tackle  the  ODS  banks,  the  Commission  proposes  tightening  up  the  provision  in 
the  Regulation  on  recovery  and  destruction  of  ODS  contained  in  products  and 
equipment, yielding environmental benefits of up to 14 000 ODP tonnes (112 million 
tonnes of CO2eq).  

To  avoid  expanding  markets  that  would  have  to  be  tackled  later,  the  Commission 
proposes listing new ODS in the Regulation and requiring producers and importers to 
report  the  volumes  traded.  Furthermore,  the  Commission  proposes  lowering  the 
existing  cap  on  use  of  methyl  bromide  for  quarantine  and  pre-shipment  purposes 
from 600 ODP tonnes to current levels of 200 tonnes and to complete a full phase-
out by 2015. Meanwhile, available recapture technologies will be made mandatory, 
also for protecting workers’ health.  

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See SEC(2008) xxx and SEC(2008) xxx. 
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. 

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3.2. 

Further action 

In  addition  to  the  amendments  outlined  above,  the  Commission  will  take  further 
action to achieve a complete phase-out of ODS, including at international level.  

Follow-up  action  will  focus,  first  and  foremost,  on  improving  the  implementation 
and enforcement of the waste policy framework, notably the Waste from Electric and 
Electronic Equipment ('WEEE') directive, and recovery of ODS in the construction 
and demolition waste stream. Such actions will also focus on identifying appropriate 
incentives  to  significantly  increase  the  amount  of  ODS  contained  in  products  and 
equipment presented for recovery, recycling or destruction in the EU.9 These actions 
will  be  pursued  in  close  cooperation  with  Member  States  and  stakeholders  in  the 
areas  of  ozone-depleting  substances,  waste  management  (notably  for  construction 
and  demolition  waste)  and  climate  change.  These  measures  could  potentially  yield 
further environmental benefits of up to 80 000 ODP tonnes or 640 million tonnes of 
CO2eq. 

In parallel, the Commission will work at the international level with Member States 
and  other  Parties  to  the  Protocol,  including  through  bilateral  meetings,  to  continue 
bringing down remaining uses and emissions of ODS also encouraging all Parties to 
fully  sign  up  to  the  amendments  of  the  Protocol.  Priorities  will  notably  include 
ensuring  that  the  global  phase-out  of  HCFCs  leads  to  the  introduction  of  climate-
friendly  alternatives,  the  tackling  ODS  banks  in  developing  countries,  reducing  the 
use  of  methyl  bromide  for  QPS  activities,  and  monitoring  global  controls  on  new 
ODS  adequately  and,  if  necessary,  stepping  them  up.  The  Commission  will 
furthermore continue to promote technology and knowledge transfer through targeted 
workshops and knowledge sharing activities.  

4. 

EXPECTED IMPACT 

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. Building on past successes and opportunities for 
simplification,  the  overall  reductions  in  administrative  costs  will  total  nearly 
€3 million  over  the  period  2010-2020,  with  about  €2  million  accruing  to  industry, 
€0.7 million  to  Member  State  authorities 
and  the  remainder  to  the  European 
Commission.  The  cumulative  additional  direct  economic  impact  over  the  period 
2010-2020  is  expected  to  stay  below  €13  m illion,  mainly  related  to  measures  to 
reduce  methyl  bromide  use  for  QPS  purposes10.  Simplification  is  expected  to  be 
particularly  beneficial  to  SMEs  which  have  less  access  to  specialist  knowledge  for 
implementing the Regulation.  

The  most  tangible  benefits  from  the  package  are  related  to  policy  action  on  QPS 
activities and on recovery and destruction of "banked" ODS. These could add up to a 

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E.g. standards linked to offset or deposit systems, funding destruction from regional funds, etc. 
Costs  would  be  significantly  lower  if  taking  into  account  the  likely  decision  to  deregister  Methyl 
Bromide on health grounds.  

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net gain of 16 000 ODP tonnes over the period 2010-2020 or the equivalent of 112 
million tonnes of CO2

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5. 

CONCLUSIONS 

The Regulation has proven to be highly effective, ensuring that the EU was a leading 
contributor to the protection of the Ozone layer. The proposed policy options build 
on the strengths of the existing Regulation, and reflect a deep commitment to simpler 
and  better  regulation  based  on  sound  analysis.  The  new  Regulation  proposed  will 
ensure that the EU continues to comply with the Montreal Protocol, whilst avoiding 
unnecessary  administrative  costs.  Simultaneously,  it  will  put  the  EU  in  a  better 
position  to  continue  playing  a  leading  role  in  tackling  the  remaining  challenges  at 
global level, including illegal trade, therefore also meeting the concerns of bona fide 
traders and NGOs.  

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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.  

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