Mostra Convegno Expocomfort, XVI EU Conference on "The Refrigerant Revolution , a 79% reduction" - Milan 20th March 2014

1. 16th European Conference
19 March 2014
Update on the new F-Gas Rules
Andrea Voigt, EPEE

2. 2
Who is EPEE?
The full value chain of the Refrigeration, Air Conditioning and Heat Pump Sector
• > 200,000 direct employees in Europe
• > € 30 billion turnover in Europe
2

3. EPEE’s Main Fields of Activities
• Promote Energy Efficiency
– Ecodesign & Energy label Directives
– Eco Label Directive
– EPBD - Energy Performance of Buildings Directive
– RES - Renewable Energies Directive
– Energy Efficiency Directive
• The F-Gas Regulation and its revision
– Make the new F-Gas rules work
– Support EU Commission and Member States in implementing the new rules
• Raise awareness on Market Surveillance
– Importance of properly enforcing and policing legislation
• Promote an HVACR association network at EU level

4. Existing EU Legislation on Refrigerants
& The International Context
Montreal
Protocol
UNEP
Kyoto
Protocol
UNFCCC
EU 1005/2009
Regulation on Ozone-
Depleting Substances
EU 842/2006
F-Gas Regulation
EU 20-20-20 Targets
EU 2050 Low Carbon Roadmap

5. The link between Montreal and Kyoto
• The phase-out of CFCs and HCFCs
will lead to an increase of HFC
consumption – especially in
developping countries.
• This increase may cancel the
progress achieved under the
Montreal Protocol.
• BUT: HFCs are covered by the
Kyoto Protocol (UNFCCC) – and
not by the Montreal Protocol
(UNEP)

6. Why a revision of the F-Gas Regulation in
Europe?
• The EU low carbon
roadmap aims for 72%
emission reduction of
F-Gases, Methane, N2O
in 2030
• The existing F-Gas
Regulation is expected
to stabilise emissions
at today‘s level
• To achieve the goals of
the low carbon roadmap
more action is needed
• Potential international
developments
6
-28%
-44%
Source: EU Commission report: http://ec.europa.eu/clima/policies/f-gas/docs/report_en.pdf
„Business as Usual“
Without F-Gas
Regulation & MAC
With F-Gas
Regulation & MAC

7. What happened in 2013?
Polarised positions of the Institutions
Balanced
Wants to profile the
EU globally
• 79% Phase-Down
• Containment &
Competence
Conservative
Economic Crisis and
North:South divide
• Supports COM
• Rejects any
additional bans
Over-ambitious
Wants HFCs to be
banned in 2020
• 84% Phase-Down
• Allocation Fees
Common Denominator: All wanted a First Reading Agreement
EPEE supported a first reading agreement, but not at any price!

8. Political Agreement of 16 December 2013
Endorsed by the European Parliament on 12 March 2014
Containment &
Competence
Regular leak
checks
Certification and
training of
installers
Phase-Down
Consumption
Reduction of
HFCs
Y 2020:
-37%
Y 2030:
-79%
GWP Limits
2015: GWP 150
Domestic Refrigerators &
Freezers
2020: GWP 150
Moveable A/C
2020: GWP 2500
New stationary
Refrigeration Equipment
2022: GWP 150
Multpack refrigeration
systems >40kW (except
cascades: GWP1500)
2025: GWP 750
Single split a/c < 3kg
Others
2017:
Traceability
systems for pre-
charged
equipment
2020:
GWP 2500 for
service &
maintenance
2050 Low Carbon Roadmap

9. Key Milestones of the Agreement
2015 2016-17 2018-20 2021-23 2024-26 2027-29 2030
100% 63% 45% 31% 24% 21%93%
2015:
Domestic
refrigerators and
freezers (GWP
150)
2025:
Single-split
AC<3kg charge
(GWP 750)
2020:
• Moveable AC (GWP 150)
• Stationary refrigeration
equipment (GWP 2500)
2022:
• Multipack commercial
refrigeration >40kW
(GWP 150) – except
primary circuit in
cascades (GWP 1500)
01/01:
Applica-
bility +
repeal
842/20
06 31/12/2022:
Comprehensive
report on effect
of Regulation
01/07/2020:
Report Annex III:
Split AC
31/12/2020:
HFC report
01/01/2017:
• Report national
codes/standards re.
alternatives & training
01/07/2017:
• Report Annex III:
Multipack
• Report PD method
Phase-
down
GWP
thresholds
Other
2017:
Traceability
2020:
Service ban
2030:
No recycled/reclaimed for
servicing
Review/reports

10. In detail: the phase-down steps
Year Reduction by
2015 100% (Freeze)
2016-17 93%
2018-20 63%
2021-23 45%
2024-26 31%
2027-29 24%
2030 21%
93%
63%
45%
31%
24%
21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2018 2021 2024 2027 2030

11. R-410A
Like
Capacity
R404A &
R407/22
Like
R134a
Like
GWP Level
400-675
< 1500
~600
150 -
300
R32
DP: DR7, DR3
HWL: L40, L20
HFO 1234yf
HFO 1234ze
R410A
R407C
R22
0 500 1000 1500 2000
Pressure
Or
DP: DR91, DR33
HWL: N20, N40
DP: DR5
HWL: L41
DP: XP10
HWL: N13
R134a
R407A R404A
DP: DR2;
HWL: N12
ARK: ARC 1
R290
NH3
A1 – Non Flammable
A2L – Mildly Flammable
A3 – Flammable
B2L – Toxic, Mildly Flam.
Qualitative Chart –
Not To Scale
ARK: ARM 71
ARK: ARM 20,
ARM 42
ARK: ARM 32
R407F
R123-Like
(V.Low Pr.)
(3922)
How to make it happen?
Lower GWP Refrigerant Landscape
CO2
Many Choices – Different Applications Will Have Different Refrigerants
Source: Emerson

12. In detail: the quota allocations
Who can apply for and who can use quota?
Total quantity of
HFCs, expressed
in CO2-eq placed
on the EU market
between 2009
and 2012
11%
Refrigerant producers
based inside the EU
Refrigerant importers
based inside the EU
Refrigerant producers based
outside the EU, via their
„only representative“
Pre-charged equipment
manufacturers based inside
the EU
Pre-charged equipment
manufacturers based outside the
EU
Allocation based on historic share:
Companies that reported placing on
the market of refrigerant from 2009
to 2012
New Entrants Reserve:
Companies that have not reported
between 2009 and 2012
Quotaholders
Refrigerantincontainers
Quotausers
Refrigeratninequipment

13. In detail: the traceability scheme
• A detailed traceability process has been established for
the import of equipment containing HFCs:
– Reporting as of 2015
– From 1 January 2017, refrigeration, air conditioning and
heat pump equipment charged with HFCs shall not be
placed on the market unless the manufacturers ensures
that the HFCs charged into this equipment are accounted
for within the HFC quota system.
– An annual declaration of conformity (DOC) by equipment
manufacturers/producers, verified by an external
auditor, is required.

14. Quota users: example (1)
I am a pre-charged equipment manufacturer in the EU
1. I produce and place on the EU market precharged equipment
• Condition 1: To be able to place pre-charged equipment containing HFCs on
the EU market, these HFCs need to be covered by the quota
I buy my HFCs from an HFC distributor, importer or producer
• Condition 2: I need to make sure that my HFC supplier holds quota. It is the
reponsability of the supplier (producer / importer) to obtain the quota and
not to exceed it.
• Condition 3: I need to indicate in my documentation and declaration of
conformity (DOC) – for which I am fully responsible – that the HFC contained
in my equipment is covered by the quota.

15. Quota users: example (2)
I am a pre-charged equipment manufacturer outside the EU
2. I manufacture my pre-charged equipment outside the EU and
place it on the EU market via an importer.
• Condition 1: To be able to place pre-charged equipment containing HFCs on
the EU market, these HFCs need to be covered by the quota.
• I buy my HFCs from an HFC producer outside the EU
• Condition 2: I need to make sure that my HFC supplier holds quota. It is the
reponsability of the supplier (producer / importer) to obtain the quota and not
to exceed it.
My HFC supplier can obtain quota via an „Only Representative“ (OR) in the EU. The
OR needs to be based in the EU and needs to apply for the quota.
• Condition 3: I need to indicate in my documentation and declaration of
conformity (DOC) – for which I am fully responsible – that the HFC contained
in my equipment is covered by the quota. .
I provide my equipment importer in the EU with the required documentation
proving that the HFC in my equipment is covered by the quota.
The documentation of the importer will be verified by an independant auditor

16. Council
endorsement
2015JuneMarch
12/03:
EP plenary
vote
OJ
(entry into force
20 days later)
What happens next?
July/
August
Sept/
October
Nov/
Dec
EC sends email
to producers
on ref. values
June: deadline
for producers
to reply
April/
May
Summer: EC to
review
By 31/10:
Commission
Decision on ref
values
End 2014:
Quota in
Registry
Expert
meeting on
implem acts
Q1:
consultation
forum

17. Conclusions
1. The phase-down requires a move towards lower GWP refrigerants
– Industry needs to act now!
2. The GWP limits will set signposts to steer the phase-down
– The bans of referigerants with a GWP of 2500 and above will free up quota for
other applications such as air-conditioning.
3. Refrigerants with a high GWP such as R-404A and R-507 will be the first
ones to be impacted
 Industry needs to act now to avoid shortages
 Serveral solutions exist to transition to refrigerants with a lower GWP
 Confinement remains a key priority

18. Contact details:
EPEE
46 Avenue des Arts
1000 Brussels, Belgium
email: a.voigt@epeeglobal.org
Web: www.epeeglobal.org
18
Thank you for your attention!