Import of HFC equipment HFC quota system and

Import of HFC equipment, HFC quota system and registration of importers and producers in the HFC Registry in the EU THEMATIC MEETING ON HCFC PHASE-OUT MANAGEMENT PLANS AND HFCS PHASE-DOWN INITIATIVES Tirana, Albania, 10 -12 October 2017 Snježana Iličić, Senior expert advisor Ministry of Environment and Energy, Croatia

EU F-gas legislation • Regulation No (EU) 517/2014 of the European Parliament and of the Council of 16 April 2014 on fluorinated greenhouse gases and repealing Regulation (EC) No 842/2006 – applies directly to all entities in the MSs – Implementing acts: Commission Regulations – apply directly to all entities in the MSs » » » 1191/2014 – reporting format (replaced Regulation 1493/2007) 2065/2015 - notification format (replaced Regulation 308/2008) 2066/2015 – certificates electrical switchgear (replaced Regulation 305/2008) 2067/2015 – certificates RAC&HP (replaced Regulation 303/2008) 2068/2015 – labeling (replaced Regulation 1494/2007) 879/2016 – declaration of conformity and audit (placing on the market equip. ) 304/2008 – certificates fire protection 306/2008 – certificates F-gas solvents 307/2008 – MAC attestations 1497/2007 – leakage checking fire protection systems 1516/2007 – leakage checking RAC&HP equipment • Directive 2006/40/EC of the European Parliament and of the Council of 17 May 2006 relating to emissions from air-conditioning systems in motor vehicles and amending Directive 70/156/EEC – must be implemented in the MSs national legislations

The Phase-down Upstream: Reduce current EU sales of HFCs in 3 year steps by (almost) 80% (2030) i. e. the quantity of available gas is limited • Tailend for applications where there are no alternatives today • The phase-down concerns: Ø All HFC bulk gases placed on the EU market (imports) Ø Imported precharged RAC equipment included from 2017 79%

The Phase-down effects: • Prices for high GWP gases may rise if users do not switch to low GWP equipment quickly enough The initial slope is rather steep! Changes will be noticeable! • Today: GWPaverage= 2000 2030: GWP 400 (21%) i. e. a GWP 700 solution is in principle not sufficient to comply with the phasedown in the long run… • There is lots of potential to reduce the use of GWP > 2500 (404 A, 507) 407 c, f; CO 2 transcritical, cascade systems • Operators investing in new equipment today should seek good guidance!

Quota System Ø Companies importing or producing HFC (only bulk!) are given quotas Ø Reference Period: 2009 -2012 Incumbents with reference value 79 Companies: http: //eur-lex. europa. eu/legal-content/EN/TXT/? uri=OJ: JOL_2014_318_R_0008 Ø New Entrants Reserve: minimum of 11% 399 New Entrants Ø Quotas will reduce over time in line with phase-down Ø Companies are assigned quotas in CO 2 equivalent, leaving flexibility in actual substances to be put on market Ø Reference Value: 2018 -2020 Incumbents with reference value Ø 399 Companies Ø Reference Value is not a Quota -> you can sell more of your substance if it has a low GWP!

Regulation 517/2014 • Company which has a quota for bulk gases not allowed to use it for their precharged equipment • Must take quota from another company • Quantities less than 100 CO 2 eqv. pear year of HFC (bulk) without quota (R 134 a-70 kg) • 100 CO 2 eqv. also apliccable for import of precharged equipment (decision by EC and MS)

Regulation 517/2014 • 1. January 2017. precharged RAC equipment and heat pumps with HFC – quota • Autorisation of quota – importer of bulk gas to importer of prch. equipment (HFC Registry) • Quota transfer – importer to importer of gas • Producers and importers of equipment – Declaration of Conformity • 1. January 2018 – documents and Declaration of Conformity have to be verified by independent auditor (by 31. March) accredited pursuant to: - Directive 2003/87/EZ - or to verify financial statements (Regulation 1191/2014) • By 31. October 2017. referent value 2018 -2020

HFCs in precharged equipment Ø Ø Of the EU HFC demand, 11% is imported in pre-filled equipment, (18% in 2030) If not addressed, risk of circumvention of the phase-down! Solution: Obligation to ensure that all HFCs quantities filled in equipment are "accounted for" under the EU phase-down (Art. 14) – Filling in the EU, or – [outside the EU, with HFCs bought in the EU], or – authorisation to use quota from a quota holder (producer/importer of bulk HFCs) Verification through declarations of conformity and audited reports 8

HFC Registry Registration and Quota Allocations • Incumbents (=2009 -2012 reporter companies) & New Entrants confirmed their details in the online Registry (October 2014) • Quotas and Reference Values were intronduced into Registry (November 2014) Quota Transfers are possible in the Registry (since February 2015) Declarations for 2016 quota (April/May 2015): Important for new Entrants Declaration for 2017 quota • HFC Registry is part of online F-Gas Portal (=One-stop shop for all Fgas activities)

F-gas Portal Registration in the F-gas Portal is required for… • all companies concerned by the reporting obligations (Art. 19) including equipment importers and destruction compnanies • all companies wishing to ask for quota [HFC Registry] • all companies receiving or supplying exempted gases (import for destruction, feedstock, direct export, military use, semiconductor production or MDI production) [HFC Registry] How to register? http: //ec. europa. eu/clima/policies/f-gas/reporting/docs/guidance_registration_f-gases_portal_en. pdf

F-Gas Portal - Para que registrarse? Para presentar informes anuales (obligación según Art. 19) Para pedir cuota 2016 - Obligación de registrarse incluso para los importadores de equipos cargados y las compañías recibiendo gases de usos excluidos según el artículo 15 Ojo: Todos las compañías que fueron atribuidas cuotas para el año 2015 ya están en el registro! Como registrarse?

Reporting Ø Entrance gateway is the F-gas Portal Ø Companies must fill in an electronic reporting template provided by the EEA (European Environmental Agency) Ø Using existing method (since 2011) but new obligations according to Art. 19 (equipment importers, excluded uses, destruction, other fluorinated gases…) Ø The (audited) data is used to check if companies are in compliance with the quota obligations, and to allocate new reference values! Ø Deadline is 31 March each year! First time was 2015 (for activites concerning 2014) 31 March

To know more… http: //ec. europa. eu/clima/policies/f-gas/index_en. htm Legislation: http: //ec. europa. eu/clima/policies/f-gas/legislation/index_en. htm Quota Allocation & Reporting: http: //ec. europa. eu/clima/policies/f-gas/reporting/index_en. htm Alternatives: http: //ec. europa. eu/clima/policies/f-gas/alternatives/index_en. htm Guidance documents: http: //ec. europa. eu/clima/policies/f-gas/documentation_en. htm Clima-hfc-registry@ec. europa. eu DG Climate Action, European Commission

To know more… https: //ec. europa. eu/clima/sites/clima/files/f-gas/docs/guidance_submitting_quota_declaration_en. pdf https: //ec. europa. eu/clima/sites/clima/files/f-gas/docs/guidance_providing_authorization_en. pdf https: //ec. europa. eu/clima/sites/clima/files/f-gas/reporting/docs/guidance_quota_transfer_fgas_portal_en. pdf

THANK YOU FOR ATTENTION! Ministry of Environment and Energy CROATIA Radnička cesta 80 www. mzoe. hr Snježana Iličić, snjezana. ilicic@mzoe. hr 3717 -233