Since the introduction of the HFC greenhouse gas quota system, the European Commission has been closely monitoring its effects on the market and innovation.
In the initial phase, which lasted until 2018, the prices of the gases that cause the most damage to the climate rose sharply, acting as a strong motivation to use more climate-friendly substitutes. Since then, the price of HFC gases in the EU has fallen from a peak in 2018, but is still several times higher than in the world market, which in turn has spurred innovation to bring new technologies to market in this sector.
The European Commission’s report also reveals that climate-friendly alternatives are available in sufficient quantities and that initial supply issues for some HFC alternatives are no longer present in the EU.
The findings of this report will serve as input for the review of EU rules on fluorinated greenhouse gases launched by the Commission as part of the Europe Green Agreement and the draft climate law. The aim of the review is to ensure that the rules are in line with the EU’s target of achieving a 55% net reduction in greenhouse gas emissions by 2030 and becoming climate neutral by 2050. The review will also confirm the EU’s obligations regarding hydrofluorocarbons under the Montreal Protocol on Substances that Deplete the Ozone Layer. The Commission intends to propose a new F-Gas Regulation by the end of 2021.
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