COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on fluorinated greenhouse gases, amending Directive (EU) 2019/1937 and repealing Regulation (EU) No 517/2014
Date: 2022-04-05
Institutions: Directorate-General for Climate Action, European Commission
Subjects: EU emission allowance, EU environmental policy, exchange of information, export (EU), fluorine, greenhouse gas, import (EU), market approval, pollution control measures, reduction of gas emissions

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   EUROPEAN COMMISSION  Strasbourg, 5.4.2022  SWD(2022) 97 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on fluorinated greenhouse gases, amending Directive (EU) 2019/1937 and repealing Regulation (EU) No 517/2014 {COM(2022) 150 final} - {SEC(2022) 156 final} - {SWD(2022) 95 final} - {SWD(2022) 96 final}  
 
 
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Emissions  from  fluorinated  greenhouse  gases  (F-gases)  result  in  climate  warming. 
Preventing  such  emissions  is  an  important  contribution  to  achieve  the  EU’s  climate 
targets in the European Green Deal and living up to our commitments under the Paris 
Agreement on Climate Change and the Montreal Protocol on substances that deplete 
the ozone layer that regulate F-gases. Cost-efficient action at EU level on F-gases will 
support  Member  States  to  reach  their  national  greenhouse  gas  target  under  the  Effort 
Sharing Regulation.  

Regulation  (EU)  No  517/2014  on  fluorinated  greenhouse  gases  is  the  EU’s  main 
instrument to avoid F-gas emissions and to comply with the Montreal Protocol. F-gases 
are man-made chemicals that are used for many different purposes, e.g. as refrigerants 
in cooling equipment and air conditioners including heat pumps, in chemical production, 
as  the  propellant  in  asthma  sprays  or  as  insulating  materials  in  electrical  transmission 
equipment or foams in buildings. Emissions occur when the gases are produced, used in 
products or equipment or when the latter are disposed of. 

An evaluation found that the F-gas Regulation reduces emissions considerably and that 
it  works  relatively  well.  However,  the  Regulation  requires  more  ambition  in  light  of 
the reinforced EU’s 2030 climate target and the goal of reaching climate neutrality 
by  2050.  Furthermore,  Montreal  Protocol  compliance  cannot  be  ensured  in  the 
longer  term  with  the  current  rules.  There  are  also  some  implementation  challenges 
including  the  need  to  stop  illegal  activities,  and  some  gaps  and  inefficiencies  in 
monitoring. A review also offers the possibility to enhance the Regulation's clarity and 
coherence with other policies.  

The  Commission  will  propose  a  revision  to  the  Regulation  on  the  basis  of  this 
impact  assessment.  Three  option  packages  were  designed  to  address  the  issues 
identified  to  a  varying  extent.  Option  1  consists  of  measures  that  ensure  compliance 
with  the  Montreal  Protocol,  and  seeks  to  save  additional  emissions  and 
improvements  that  can  be  done  at  quite  low  costs  and  effort.  Option  2  includes,  in 
addition,  measures  that  reduce  emissions  further  and  ensure  more  comprehensive 
monitoring and control, associated with moderate costs. Option 3 includes all measures 
considered useful and technically feasible, also including those that may come at a high 
cost or effort.  

Option 2 is the preferred combination of measures. The first option package appears 
insufficient  in  the  current  political  context  as  it  fails  to  save  more  emissions  than  the 
baseline by 2050, despite removing a quantitatively important exemption from the quota 
system, and the third option package appears too costly compared to the benefits it would 
generate, i.e. leading to a very high burden for a few sub-sectors while resulting in only 
few additional emission savings compared to Option 2.  

Compared  to  today,  Option  2  will  further  restrict  the  quota  amount  available  for 
placing  hydrofluorocarbons  on  the  market  each  year  until  2050,  and  EU  producers  and 
importers  will  have  to  start  paying  for  their  quota  rights.  Several  types  of  new 
equipment  will  also  become  subject  to  F-gas  prohibitions  (e.g.  air  conditioning  and 
switchgear) and emission  prevention  measures  are extended. Option  2  will align the 

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Regulation  with  the  Montreal  Protocol  by  removing  some  exemptions,  by 
introducing a separate production phase-down for hydrofluorocarbons, and by ending 
trade  with  non-Parties  from  2028.  Moreover,  specific  requirements  on  customs 
processes and economic operators will be introduced to prevent illegal activities, while 
equipment  service  personnel  will  be  more  broadly  trained  on  alternative 
technologies.  Finally,  monitoring  and  company  reporting  activities  will  become  both 
more complete and fit-for-purpose.  

Option 2 will save emissions amounting to 40 MtCO2e by 2030 and 310 MtCO2e by 
2050 on top of the amount the current Regulation would achieve (i.e. savings of 430 and 
1990 MtCO2e, respectively). While some users of equipment will face price increases for 
hydrofluorocarbons  due  to  stricter  quota  limits,  overall  Option  2  will  result  in  cost 
savings for equipment users in the long run due to energy savings. The administrative 
costs will increase moderately for industry, Member States and the Commission, notably 
for measures to align with the international rules and achieve better controls.  

In response to the natural gas crisis due to recent geopolitical events, the Commission has 
proposed to advance the roll-out of heat pumps. While it is important to increase both the 
energy efficiency and limit the direct F-gas emissions of heat pumps, the quota system in 
Option 2 provides sufficient margin for this higher growth, even if a slightly slower 
conversion of small heat pumps to climate-friendly alternatives is considered. 

Thus, the phase-down appears coherent with the targets for renewable energy, even 
if the significantly higher heat pump growth needed in the light of the current 
natural gas energy crisis and a resulting slightly slower conversion of small heat 
pumps to climate-friendly alternatives is taken into account.  

Stakeholders were consulted extensively. They agree that it is necessary to review the 
Regulation now and that the review should build on existing measures. Industry, Member 
States  and  NGOs,  in  general,  support  the  measures  addressing  the  implementation 
challenges and compliance with the Montreal Protocol. Regarding the ambition level 
for  the  HFC  phase-down  and  prohibitions,  notably  related  to  F-gas  use  in  heat  pumps, 
some industry stakeholders consider that the current Regulation is sufficiently ambitious, 
whereas  innovators  and  manufacturers  of  climate-friendly  technologies  are  pushing  for 
stronger  policy  drivers  to  market  their  solutions.  The  latter  is  also  supported  by  NGOs 
and many competent authorities. This is reflected in the three options examined. 

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