New EU Legislation on F- Gases motivation, objectives, impacts, - - PowerPoint PPT Presentation

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New EU Legislation on F- Gases motivation, objectives, impacts, - - PowerPoint PPT Presentation

New EU Legislation on F- Gases motivation, objectives, impacts, innovation Arno Kaschl European Commission DG Climate Action Tel Aviv 31 March 2014 Climate Action Relevance of fluorinated gases (F-gases) Gas GWP (AR 4, 100 year) CO


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Climate Action

New EU Legislation on F- Gases –

motivation, objectives, impacts, innovation

Arno Kaschl European Commission – DG Climate Action Tel Aviv – 31 March 2014

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Climate Action

Relevance of fluorinated gases (F-gases)

Source: UNEP, 2011

Gas GWP

(AR 4, 100 year)

CO2 1 Methane 25 Nitrous Oxide 298 HFC 134a 1 430 HFC 404A 3 922 HFC 410A 2 088 HFC 125 3 500 PFC 14 7 390 SF6 22 800

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Source: European Environmental Agency, 2014

http://www.eea.europa.eu/data-and-maps/indicators/emissions-and-consumption-of-fluorinated/assessment

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Source: European Environmental Agency, 2014

http://www.eea.europa.eu/data-and-maps/indicators/emissions-and-consumption-of-fluorinated/assessment

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5

2050 Low Emission Roadmap (2011)

0% 20% 40% 60% 80% 100% 1990 2000 2010 2020 2030 2040 2050 0% 20% 40% 60% 80% 100% Current policy Power Sector Residential & Tertiary Non CO2 Other Sectors Industry Transport Non CO2 Agriculture

  • Warming should be

limited to 2°C

  • EU contribution to

global effort is to reduce GHG emissions by 80-95% (1990- level)

  • Sectoral contributions

F-gases are low-hanging fruits for mitigation  Several suitable (safe, energy-efficient, cheap) low GWP alternatives available for most sectors  Abatement costs are modest

MOTIVATION

40%

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(1) F-Gas Regulation Focus on "Containment"

  • leak prevention in existing equipment, e.g. leak checks
  • training and certification of relevant personnel
  • recovery of gases after use
  • record keeping and reporting
  • some bans

(2) MAC Directive

  • bans of HFCs >150 in passengers cars and light trucks

Also policies on ecodesign, ecolabelling, waste,…

Pre-2014 EU F-gas Policy (2006+) for our 28 EU Member States

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New EU F-gas policy must …

  • contribute consistently and cost-effectively

to the EU 2050 GHG reduction targets

  • stimulate innovation/improve market
  • pportunities for alternative technologies/

gases with lower GWP

  • be consistent with international agreements
  • be efficient and proportionate

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OBJECTIVES

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F-gas emissions in 1995-2050 without measures and the effects of the F-gas Regulation/MAC Directive

  • Source: Schwartz et al. 2011.

Legislation from 2006 can achieve a stabilization of emissions, reducing emissions by almost 50%

 Not sufficient for EU climate goals, Roadmap New Fgas Regulation will decrease emission by >70 Mt CO2eq. (two-thirds of today!)

With existing '2006 F-gas legislation' & MAC Directive Without existing F-gas legislation Additional potential from New Fgas Regluation (2015+)

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Two strategies to reduce emissions

  • Prevent leakage and emissions
  • Emission prevention and leak checks -> Art. 2 - 4
  • Control of by-production -> Art. 6
  • End of life treatment of products and equipment -> Art. 7
  • Training and qualification -> Art. 8
  • Information for users (labelling, product infos) -> Art. 10
  • Avoid the use of F-gases
  • Training and qualification
  • Ban on new applications -> Art. 9
  • Ban on uses -> Art. 11
  • Phase-down of HFC supply -> Art. 13 ff.

New Fgas Regulation from 2015 onwards

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HFC phase-down – the main novelty

  • Limit HFC bulk gas & gas inside equipment placed
  • n the EU market
  • Schedule: freeze 2015, first step 2016, reduction
  • f HFC supply by 79% in 2030 (in CO2 equivalent)
  • Baseline: reported 2009-2012
  • Quota allocation based on historical sales and new

entrants reserve

  • Monitoring: Ex post, Independently verified reports
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New EU F-gas proposal: Adoption

European Parliament Council of the EU

754 Members Ministers from all directly-elected EU Member States

Political Agreement reached in December 2013 European Parliament adopted on 13 March 2014 Will be in force from May 2014, apply from 2015!

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Climate Action

Environment: By 2030 reduction of >70 Mt CO2

  • eq. or two-thirds compared to 2005. Proposal fully

consistent with EU Low Carbon Economy Roadmap

Economic: GDP impacts +0.006 to – 0.009%.

Conservative estimation based on today's (2010) costs and availability of alternatives

Social: -16.000 to +7000 jobs. No

safety/occupational/health risks.

European Commission, 2012, Impact Assessment

http://ec.europa.eu/clima/policies/f-gas/legislation/docs/swd_2012_364_en.pdf

IMPACTS

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Climate Action

Summary expected emission reductions [Mt CO2 eq.]

Achieved (2010) Estimate 2020 Estimate 2030 Estimate 2050

Fgas Regulation 842/2006 4 33 80 42 MAC Directive 2006/40/EC 13 50 New Fgas Regulation (xxx/2014)

  • 25

75 87 Σ 4 71 155 180

Cumulative emission savings by the new Fgas Regulation alone amount to 0.63 Gt by 2030, and 2.4 Gt by 2050. Total cumulative savings of all 3 pieces of legislation are estimated to be 1.5Gt by 2030, and >5Gt by 2050.

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Climate Action

Abatement Costs

  • Marginal abatement costs: 49€ / ton CO2 eq.
  • Average abatement costs: 16-17€ / ton CO2 eq.

EU-27 MACC emission reduction vs. WM scenario 2030

  • 50

50 100 150

20,000 40,000 60,000 80,000 ktCO2eq € / tCO 2eq

Marginal abatement cost curve

14

  • Source: Schwartz et al. 2011.
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Climate Action

Economic effects

Detailed economic modelling

  • Effects are small, but vary by sector
  • (Small) direct positive effects on manufacturing
  • (Small) direct negative effects on energy sector (due to

higher energy efficiency of alternatives)

Different market players:

F-gas producers, equipment manufacturers, importers/ exporters, service companies, end users..

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Climate Action

Economic effects: Competitiveness

  • Effects on competitiveness are small
  • Indirect effects e.g. on retail sector are marginal
  • Effects on consumer prices are marginal, 0,00 to -0,01%
  • Positive effects for innovative companies selling alternative

equipment ("green growth")

  • No replacement of existing equipment required

Investment costs occur only at end-of-life  Burden on retailers (SMEs and micro-enterprises) is kept low

  • De minimis clauses

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Climate Action

Other Economic & Social Effects

  • Administrative costs can be kept low
  • <0.1% of direct costs to industry for phase-down
  • Regional effects are small
  • ca. 1€ per inhabitant higher in Southern Europe due to

higher use of AC equipment

  • Equal treatment for domestic producers and

importers  no trade barriers

  • Phase-down incentivises alternatives globally

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RAC Market

% 2010 HFC Demand

Approximate GWP Threshold for New Product Ban Restrictions in EU legislation 150 700 1400 2500

Refrigeration

Domestic refrigeration 0.2%

banned from 2015 (GWP>150)

Commercial Small Hermetic 0.2%

banned from 2020 (>2500) and 2022 (>150)

Commercial Condensing Units 4%

banned from 2020 (>2500)

Commercial Multipack 33%

banned from 2020 (>2500) and 2022 (>150) [allowing cascades with GWP<1500]

Transport Refrigeration 1% Industrial Small / Medium DX 8%

banned from 2020 (>2500)

Industrial Large DX 3%

banned from 2020 (>2500)

Industrial chillers 1%

banned from 2020 (>2500)

Industrial flooded 0.1%

banned from 2020 (>2500)

INNOVATION

Key to Traffic Lights

Ban suitable (but may need small number of exemptions in some sectors) Ban may be suitable for part of sector, but more commercial development needed Ban not suitable at this time

Based on work by SKM Enviros

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Climate Action

Refrigeration options

For smaller equipment (e.g. domestic fridges, standalone units), suitable alternatives are fully available, e.g. hydrocarbons are a safe, more energy-efficient alternative

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Climate Action

Source: Shecco

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Source: Shecco

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Climate Action

For larger commercial refrigeration, R404a is not cool anymore!  R404a has GWP of almost 4000  There are more energy-efficient options (less costs for endusers!) with lower GWP available, e.g.

  • R407 series as a drop-in solution

(supermarkets in UK do it voluntarily!)

  • CO2 in cascades (avoid efficiency issue under

high T!) <> CO2 transcritical

Refrigeration options

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Source: Shecco

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Source: Shecco

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Based on work by SKM Enviros

RAC Market

% 2010 HFC Demand

Approximate GWP Threshold for New Product Ban Restrictions in EU legislation 150 700 1400 2500

Air-Conditioning and Heat Pumps

Small portable units 1%

banned from 2020 (<150)

Split systems 20%

banned from 2025 (<750)

Packaged systems 0.4% VRF systems 2% Small and medium chillers 6% Large chillers 2% Domestic hydronic heat pumps 1% Other heat pumps 1% MAC: cars and vans 10%

banned via MAC Directive (2011 for new car types, 2017 for new cars)

MAC: large vehicles 7% Key to Traffic Lights

Ban suitable (but may need small number of exemptions in some sectors) Ban may be suitable for part of sector, but more commercial development needed Ban not suitable at this time

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Based on work by SKM Enviros

RAC Market

Approximate GWP Threshold for New Product Ban

Restrictions in EU legislation

150 700 1400 2500

Foams XPS banned from 2020 (>150) Others incl. PU banned from 2023 (>150) Aerosols For novelty use banned from 2009 (>150) For technical use banned from 2018 (>150) Fire protection HFC-23 banned from 2016

Key to Traffic Lights

Ban suitable (but may need small number of exemptions in some sectors) Ban may be suitable for part of sector, but more commercial development needed Ban not suitable at this time

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Other restrictions

Banned:

  • Non-refillable containers (2007)
  • Non-confined direct evaporation systems (2007)
  • One-component foams (2008, GWP >150)
  • SF6 in windows (2007/8), footwear (2007), tyres

(2007)

  • SF6 in Mg manufacturing processes (2008/2018)
  • Selling Fgases to undertakings that are not

appropriately certified

  • Servicing existing refrigeration equipment

with >2500 (2020)

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EU actions on F-gases in international context

  • Increased EU demand for alternative technologies
  • innovation and economies of scale also in other markets
  • hence reducing costs of a global phase-down of HFCs
  • Show leadership in reducing the emissions gap
  • We are actively exploring further options for international

collaborations to achieve faster reductions of HFC consumption

There is a unique window to save money and effort by acting now, by (i) reducing existing use of HFCs, and (ii) using low-GWP alternatives when replacing

  • zone depleters
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Our proposed way forward globally:

Phasing Down of HFCs under the Montreal Protocol

  • Profit from existing and well-functioning means of

implementation under MP for the same industry sectors

  • Important cost savings are possible if we avoid that high

GWP HFCs are phased in first

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Climate Action

Other important users are also taking action, e.g. Japan, US

Sign of the times

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Climate Action

EU-US summit 26 March 2014: Joint Statement

  • [..] 7. Sustainable economic growth will only be

possible if we tackle climate change [..]The EU and the United States demonstrate leadership and are intensifying their cooperation, including: phasing out fossil fuel subsidies, phasing down the production and consumption of hydrofluorocarbons (HFCs) under the Montreal Protocol. [..] We are committed to ambitious domestic action to limit HFC use and emissions.

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Climate Action

Modified from:

  • Tom Toles, 2010,
  • Washington Post

It`s a time machine that we hope will take us back 50 years when we should have taken effective and cost-efficient measures…

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Climate Action

Relevant studies

  • Clodic et al., 2013, Alternatives to high GWP HFCs In

Refrigeration and Air conditioning applications

http://www.afce.asso.fr/en-france/copy-of-etude-sur-les-alternatives-aux-hfc-a-fort-gwp

  • Schwarz et al., 2011, Preparatory Study for a review of the

Fgas Regulation

http://ec.europa.eu/clima/policies/f-gas/docs/2011_study_en.pdf

  • SKM Enviros, 2013, Possible bans for new RAC equipment

(Technical paper for European Commission)

  • SKM Enviros, 2012, Phasedown of HFC consumption in the EU –

Assessment of Implications for the RAC Sector

  • European Commission, 2012, Impact Assessment

http://ec.europa.eu/clima/policies/f-gas/legislation/docs/swd_2012_364_en.pdf

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Climate Action

To know more…

http://ec.europa.eu/clima/news/articles/news_2014031201_en.htm http://ec.europa.eu/clima/policies/f- gas/legislation/docs/fluorinated_greenhouse_gases_en.pdf http://ec.europa.eu/clima/policies/f-gas/legislation/documentation_en.htm