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Revised F-Gas Regulation Proposes HFC "Fees" and a More Stringent HFC Phase Down

April 24, 2013

The European Parliament recently released its proposed amendments to the European Commission proposal for a revised F-gas regulation. The proposed amendments include a more stringent HFC phase down schedule, along with an allocation fee for HFC production and import quotas as well as additional product bans. Agreement on the proposed F-gas regulation is expected this summer.

Under the new proposal, the phase down of HFCs calls for a 17% reduction beginning in 2016-17. This is a 10% increase from the original proposal of seven percent.

The proposed allocation fee and importation quotas would be charged starting in 2013 at a rate of 30 Euros ($39 USD) per ton of CO2 equivalent, or approximately 44 Euros ($57 USD) per pound of HFC-227ea.

Although final details have not been determined, this significant proposal clearly indicates that there is a strong desire to continue to reduce the use of HFCs, including in fire suppression. This proposal is also consistent in many ways with recent proposals under the Montreal Protocol to phase down global production of HFCs and a relatively new Australian regulation that applies a similar tax on HFCs.

To read the draft report from the European Parliament click here.

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