April 5, 2023
Implementation of the New F-Gas Regulations: Challenges to Be Addressed in Support of Climate Action
The F-Gas Regulation is set to be implemented in all European Union countries. Amid a mix of pragmatism and uncertainty, industry players are preparing and getting ready to comply. We break it down with Matthieu Paul-Dauphin, Director of Refrigeration Procurement at Equans France and an expert on the refrigerant market.
What is the F-Gas Regulation?
This is a European regulation designed to reduce the impact of refrigerants on the climate. When present in the atmosphere, these gases contribute to global warming due to their global warming potential. They also contribute to the depletion of the ozone layer. Used in refrigeration systems, they are defined by a GWP—a measure of their global warming potential—which is associated with an equivalent level of CO2 emissions. The presence of these refrigerants in the air is primarily due to leaks in the systems.
To reduce the use of these gases, regulations have been based on purchase volumes at the European Union level, treating them as equivalent to the refrigerants released due to leaks. The stakes are high, as the goal is to prevent the equivalent of 176 million metric tons of CO2 emissions each year in Europe. Similar regulations are in effect or being implemented in the United States and the United Kingdom.
The revision of the first directive, adopted in 2015, has just been approved, and its significantly strengthened provisions will take effect at the end of March 2024. In practical terms, this means accelerating the phase-out of refrigerants with high global warming potential effective immediately.
What are the implications for the industry?
The primary users of refrigerants are those involved in food production, processing, and distribution: manufacturers, logistics hubs, and retailers. In short, this encompasses the entire cold chain, as well as air conditioning systems across all their applications. The primary source of emissions is large-scale retail, which frequently uses these systems with extensive networks—from cold storage rooms to sales floors and machine rooms. The greater the refrigerant charge, the higher the risk of leaks. Conversely, with refrigeration systems confined to production areas and the use of green refrigerants, manufacturers are less exposed to the consequences of stricter regulations.
The consequences of the directive’s implementation are expected to be felt soon. Starting in 2024, the volume of refrigerants available on the market will decrease sharply due to the quotas that have been put in place. This trend will accelerate in 2025, leading to a significant price increase and a potential shortage: certain breakdowns caused by refrigerant leaks could make it impossible to repair the systems.
What are the alternatives for keeping equipment operational?
The amendment to the F-Gas Directive will accelerate the replacement of systems and the use of green refrigerants (notably CO2 and propane), which have a very low impact on global warming... Investments are already planned by many companies that have anticipated regulatory changes and the significant costs associated with purchasing new equipment.
It is estimated that approximately 25% of the food retail sector’s equipment is already fully converted to green refrigerants. However, it is necessary to accelerate the investments required to modernize the remaining facilities, given the substantial implementation timeframes—averaging 12 to 18 months per site. The challenge is all the greater given that we will have to contend with a reduction in quotas for traditional refrigerants.
This regulation is a step in the right direction toward addressing the climate crisis. Its implementation timeline has just been revised and is now particularly ambitious. Equans is ready to support this necessary transition with proven, technically sound solutions tailored to the needs of various stakeholders.
