What changed between the draft committee report and the plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

11 unchanged paragraphs

on the proposal for a regulation of the European Parliament and of the Council on fluorinated greenhouse gases, amending Directive (EU) 2019/1937 and repealing Regulation (EU) No 517/2014

(COM(2022)0150 – C90142/2022 – 2022/0099(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2022)0150),

– having regard to Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90142/2022),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Economic and Social Committee of 15 June 2022,

– after consulting the Committee of the Regions,

– having regard to Rule 59 of its Rules of Procedure,

– having regard to the opinion of the Committee on Industry, Research and Energy,

Changed:– having regard to the report of the Committee on the Environment, Public Health and Food Safety (A90000/2022),(A9-0048/2023),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 1

Changed:Recital 1: (1) The European Green Deal launched a new growth strategy for the Union that aims to transform the Union into a fair and prosperous society with a modern, resource-efficient and competitive economy. It reaffirms the Commission’s ambition to make Europe the first climate-neutral and zero-pollution continent by 2050 and aims to protect the health and well-being of citizens from environment-related risks and impacts. Furthermore, the EU is committed to Regulation (EU) 2021/1119 of the European Parliament and of the CouncilCouncil1a (‘European Climate Law’)1a,Law’), the 8th Environmental Action Programme, and the 2030 Agenda for Sustainable Development and its Sustainable Development Goals. / 1a Regulation (EU) 2021/1119 establishingof the European Parliament and of the Council of 30 June the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).

Change 2

Removed:Recital 5: (5) Due to rising HFC emissions globally, Parties to the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer (‘the Protocol’) decided in 2016 under the Kigali Amendment29 to implement an HFC phase-down that is to reduce HFC production and consumption by more than 80 % over the next 30 years. This implies that each Party must comply with an HFC consumption and production reduction schedule as well as providing for a licencing system for imports and exports and reporting on HFCs. It is estimated that the Kigali Amendment alone will save up to 0,4°C of additional warming by the end of the century. The global phase-out of fluorinated greenhouse gases in split air conditioners alone is estimated to save up to 0,12 °C of additional warming by the end of the century29a. / 29a The key role of propane in a sustainable cooling sector, Pallav Purohit et al., Sustainable Science Earth, Athmospheric, and Planetary Science, July 2022.

Added:Recital 3: (3) Regulation (EU) No 517/2014 of the European Parliament and of the Council26 was adopted to reverse the increase in fluorinated greenhouse gas emissions. As concluded by an evaluation prepared by the Commission, Regulation (EU) No 517/2014 has led to a year-on-year decrease of fluorinated greenhouse gas emissions. The supply of hydrofluorocarbons (‘HFCs’) has declined by 37 % in metric tonnes and 47 % in terms of tonnes CO2 equivalent from 2015 until 2019. There has also been a clear shift to the use of alternatives with lower global warming potential (‘GWP’) including natural alternatives (for example air, CO2, ammonia, hydrocarbons, water) in many types of equipment that used fluorinated greenhouse gases traditionally.

Removed:Recital 7: (7) To ensure coherence with the reporting requirements under the Protocol, global warming potentials of HFCs should be calculated in terms of the 100-year global warming potential of one kilogram of a gas relative to one kilogram of CO2 based on the Fourth Assessment Report adopted by the IPCC. For other substances, the most recent IPCC Assessment Report should be used. Where available, the 20-year global warming potential should be provided to better inform about the climate impacts of the substances covered by this Regulation. The Commission should advocate for an update of the GWP values of fluorinated greenhouse gases in line with the Sixth Assessment Report adopted by the IPCC at the international level.

Added:Recital 4 a (new): (4a) The RePowerEU Plan envisages an additional 20 million new heat pumps to be installed in the Union by 2026 and nearly 60 million by 2030. The full HFC phase-down by no later than 2050 should be in line with and complimentary to the Union’s energy-efficiency ambitions as laid down in, inter alia, the European Green Deal, the Energy Efficiency Directive (2012/27/EU), the Energy Performance of Buildings Directive (Directive 2010/31/EU) and the RePowerEU Plan, including the uptake of low-climate impact waste-heat recovery applications, such as heat pumps, as well as investments in electrification, power grid expansions and the increased use of batteries in the energy and transport sector.

Removed:Recital 9: (9) Given that the production process for some fluorinated compounds can result in significant emissions of other fluorinated greenhouse gases produced as by-products, such by-product emissions should be destroyed or recovered for subsequent use as a condition for the placing of fluorinated greenhouse gases on the market. Producers and importers should be required to document mitigation measures adopted to prevent emissions of trifluoromethane during the production process and proof of the destruction and recovery in line with the best available techniques.

Added:Recital 6 b (new): (6b) It is of great importance that the Commission takes the phasing out of HFCs into account in its upcoming legislative proposals, such as in the revision of Regulation EC/1907/2006 on the Registration, Evaluation and Authorisation of Chemicals (the ‘REACH Regulation’) regarding the phase out of per- and polyfluoroalkyl substances (PFAS).

Removed:Recital 10 a (new): (10a) Despite the high GWP and increasing use of sulfuryl fluoride, the emissions of this fluorinated greenhouse gas have not been regulated or monitored and are also not covered by any reporting requirements under the Paris Agreement. Where alternative treatment methods of wood and wooden products against pest infestation are available, the use of sulfuryl fluoride should be prohibited by 2030. From 2025, operators should ensure that, if technically feasible and not disproportionately costly, sulfuryl fluoride is recovered after fumigation.

Added:Recital 7: (7) To ensure coherence with the reporting requirements under the Protocol, global warming potentials of HFCs should be calculated in terms of the 100-year global warming potential of one kilogram of a gas relative to one kilogram of CO2 based on the Fourth Assessment Report adopted by the IPCC. For other substances, the most recent IPCC Assessment Report should be used. Where available, the 20-year global warming potential should be provided to better inform about the climate impacts of the substances covered by this Regulation. The Commission should advocate for an update at international level of the GWP values of fluorinated greenhouse gases in line with the Sixth Assessment Report adopted by the IPCC.

Added:Recital 8: (8) The intentional release of fluorinated substances, where unlawful, is a serious infringement of this Regulation and should be explicitly prohibited; operators and manufacturers of equipment should be obliged to prevent leakage of such substances to the extent possible, including through leak checking of the most relevant equipment and progressive installation of leakage detection systems, including on residential heat pumps, that would prevent the release of harmful refrigerants into the atmosphere, helping users to minimise their environmental impact, as well as to increase durability and energy efficiency of the appliances.

Added:Recital 9: (9) Given that the production process for some fluorinated compounds can result in significant emissions of other fluorinated greenhouse gases produced as by-products, such by-product emissions should be destroyed or recovered for subsequent use as a condition for the placing of fluorinated greenhouse gases on the market in accordance with the Protocol. Producers and importers should be required to document mitigation measures adopted to prevent emissions of trifluoromethane during the production process and proof of the destruction and recovery of those by-product emissions in line with the best available techniques.

Added:Recital 10: (10) To prevent emissions of fluorinated substances, it is necessary to lay down provisions on the recovery of substances from products and equipment and the prevention of leakages of such substances. Foams containing fluorinated greenhouse gases should be treated in accordance with Directive 2012/19/EU of the European Parliament and of the Council.30 Recovery obligations should also be extended to building owners and contractors when removing certain foams from buildings, in order to maximise emissions reductions. Waste electrical and electronic equipment schemes in Member States need to be considerably improved to better facilitate the recovery, recycling and reclamation of refrigerants, including from residential heat pumps.

Added:Recital 10 a (new): (10a) Despite the high GWP and increasing use of sulfuryl fluoride, the emissions of that fluorinated greenhouse gas have not been regulated or monitored and are also not covered by any reporting requirements under the Paris Agreement. From 2025, operators should ensure that, if technically feasible and not disproportionately costly, sulfuryl fluoride is recovered after fumigation.

Recital 10 b (new): (10b) Member States should ensure that producer responsibility schemes are established for the treatment of end-of-life fluorinated greenhouse gases. The Commission should set out minimum requirements for those producer responsibility schemes, including on collection, reclamation, recycling, disposal facilities, equipment provision to certified technicians, reporting and awareness-raising.

Change 3

Changed:Recital 11: (11) To encourage the use of technologies with no impact or lower impact on the climate that may involve the use of substances that are toxic, flammable or highly pressurized, theMember trainingStates should ensure that a high number of natural persons who carry out activities involving fluorinated greenhouse gases should coverand technologies replacing or reducing the use of fluorinated greenhouse gases,gases includingare trained and certified. Trainings should include information on energy efficiency aspects and applicable regulations and technical standards. Certification and training programmes established under Regulation (EU) No 517/2014, which may be integrated in national vocational training systems, should be reviewed or adapted enabling technicians to handle alternative technologies safely. Member States should ensure that all of the workforce handling fluorinated greenhouse gases and alternative technologies are fully trained.

Change 4

Removed:Recital 13: (13) Where suitable alternatives to the use of fluorinated greenhouse gases are available, bans should be introduced on the placing on the market of new equipment for refrigeration, air-conditioning, foams, technical aerosols and fire protection that contains fluorinated greenhouse gases or whose functioning relies upon those gases. Where alternatives are not available or cannot be used for technical or safety reasons, or where the use of such alternatives would entail disproportionate costs, it should be possible for the Commission to authorise an exemption to allow the placing on the market of such products and equipment for a limited period.

Added:Recital 11 a (new): (11a) In May 2022, the European Commission presented the RePowerEU Plan, as a response to the hardships and global energy market disruption caused by Russia's invasion of Ukraine, aiming at ending the Union’s dependence on Russian fossil fuels and tackling the climate crisis. The Plan includes a target to roll out 10 million hydronic heat pumps by 2027 and to double the rate of heat pump deployment by 2030. While the heat pump industry has started investing in HFC alternatives, it could prove challenging to quickly replace production of HFC-based heat pumps with natural alternatives and deliver to the market the amount of heat pumps targeted by RePowerEU. The Commission should therefore closely monitor market developments and should provide an additional amount of HFC quotas to the heat pump industry, should the HFC quota phase-down set out in Annex VII create disruptions in the Union’s heat pump market to an extent which would endanger the attainment of the RePowerEU heat pump deployment targets.

Removed:Recital 13 a (new): (13a) The Commission recognises, in its communication of 14 October 2020, entitled “Chemicals Strategy for Sustainability Towards a Toxic-Free Environment” that per- and polyfluoroalkyl substances (PFAS) require special attention, considering the large number of cases of contamination of soil and water - including drinking water - in the EU and globally, the number of people affected with a full spectrum of illnesses and the related societal and economic costs. In order to ensure coherence with Union policy and a high level of protection of human health and the environment, and given the availability of non-toxic alternatives, the use of fluorinated greenhouse gases that are also PFAS, whose production produces PFAS or otherwise decomposes into PFAS, should not be encouraged by this Regulation.

Added:Recital 11 b (new): (11b) The shift towards the use of hydrofluorocarbon alternatives will lead to cost savings for undertakings as a result of avoided HFC quota purchase, and will spur green innovation and employment. Member States should however ensure a fair and just transition,leaving no one behind, for the personnel employed by undertakings which do not succeed in the transition to natural alternatives,.

Removed:Recital 13 b (new): (13b) The Commission should request the European standardisation organisations to develop and update relevant harmonised standards to ensure the smooth implementation of the restrictions on placing on the market laid down in this Regulation. Member States should ensure that national standards and building codes are updated to reflect the allowable charge limits of flammable refrigerants, including IEC 60335-2-89 and IEC 60335-2-40 and should report on their efforts to that end and any exceptions to their update.

Added:Recital 12: (12) The existing prohibitions on specific uses of sulphur hexafluoride, the most climate damaging substance known, should be retained and be complemented by additional restrictions on the use in the critical sector of power distribution. This Regulation does not require the replacement of switchgears that are already installed in the power grid on the dates indicated in Annex IV. Grid operators should only be required to install new switchgears fulfilling the requirements set out in that Annex when, as from the dates indicated therein, they decide to replace already installed switchgears or to install additional switchgears in the power grid.

Removed:Recital 13 c (new): (13c) The Commission should work in close cooperation with the European Medicines Agency to coordinate a smooth approval process in respect of fluorinated substances and alternatives for medical use, so that all environmental and health aspects are taken into account.

Added:Recital 12 a (new): (12a) The acceleration in the market of air conditioning and heat pump equipment and the technological turnover in refrigeration reinforce the need for Member States to increase efforts to ensure certification programmes and training are sufficient to meet the Union's climate objectives.

Removed:Recital 15: (15) Non-refillable containers of fluorinated greenhouse gases, should be banned, considering that an amount of refrigerant inevitably remains in these containers when emptied, which is then released into the atmosphere. In this respect, this Regulation should prohibit their import, placing on the market, subsequent supply or making available on the market, use unless for laboratory and analytical uses, and their export. Containers of fluorinated gases should bear a label with information on arrangements for their return for refilling.

Added:Recital 13: (13) Where suitable alternatives to the use of specific fluorinated greenhouse gases are available, bans should be introduced on the placing on the market of new equipment for refrigeration, air-conditioning and fire protection, foams and technical aerosols that contains fluorinated greenhouse gases or whose functioning relies upon those gases. Where alternatives are not available or cannot be used for technical or safety reasons, or where the use of such alternatives would entail disproportionate costs, it should be possible for the Commission to authorise an exemption to allow the placing on the market of such products and equipment for a period of maximum 4 years. That exemption should be able to be renewed if, after assessment of a new substantiated exemption request, the Commission, through the committee procedure, concludes that alternatives are still not available.

Removed:Recital 15 a (new): (15a) As third countries, particularly developing ones, might not have stringent recovery obligations for fluorinated greenhouse gases nor have the appropriate infrastructure to manage those gases at the end of life, exports of products and equipment containing fluorinated greenhouse gases and of containers of those gases from the Union to third countries could result in the release of those gases into the atmosphere when the products and equipment are discarded. As part of its global efforts to mitigate climate change, the Union should not permit the export of at least the most potent hydrofluorocarbons.

Added:Recital 13 a (new): (13a) The Commission should request the European standardisation organisations to develop and update relevant harmonised standards to ensure the smooth implementation of the restrictions on placing on the market laid down in this Regulation. Member States should ensure that national standards and building codes are updated to reflect the allowable charge limits of flammable refrigerants, including IEC 60335-2-89 and IEC 60335-2-40 and should report on their efforts to that end and any exceptions to their update.

Removed:Recital 20: (20) Considering the market value of the allocated quota, it is appropriate to claim a price for its allocation. That price should increase over time in order to provide a stable revenue stream. This avoids a further fragmentation of the market to the detriment of those undertakings that are in need of the HFC supply and already dependent on HFC trade in the declining market. It is assumed that undertakings that decide not to claim and pay any quota, for which they would be entitled in the year(s) prior to the calculation of reference values, have decided to leave the market and thus they do not get a new reference value. The revenue should be used to cover administrative costs and allow for additional investments in Member States to stimulate the training and uptake of natural refrigerants and measures to prevent illegal HFC trade.

Added:Recital 13 b (new): (13b) When examining if there are alternatives to the use of specific fluorinated greenhouse gases, the Commission should not only consider if a technical alternative exists, but also consider that alternative as broadly as possible. The Commission should therefore consider, inter alia, if the alternative is economically viable and if the alternative can be widely deployed for practical reasons. In particular, the Commission should take into account the situation of small and medium- sized enterprises (SMEs) when assessing ifan alternative can realistically be applied. The Commission should also be able to provide for exceptions applicable to SMEs.

Removed:Recital 33: (33) Member States should lay down rules on minimum penalties applicable to infringements of the provisions of this Regulation and ensure that they are implemented. Those penalties should be effective, proportionate and dissuasive.

Added:Recital 13 c (new): (13c) The production of metered dose inhalers (MDIs) for the delivery of pharmaceutical ingredients uses a non-negligible proportion of all HFCs consumed in the Union. However, MDIs using lower GWP fluorinated greenhouse gases and natural alternatives are being developed by the industry. This Regulation includes the MDI sector in the HFC quota system , thereby creating an incentive for the industry to pursue its path towards cleaner alternatives. To enable a smooth transition towards clean alternatives, Annex VII and VIII to this Regulation introduce a mechanism of reserved quotas for the MDI sector for the first two quota allocation periods. The MDI sector should be able to receive an amount of quotas corresponding to its entire current consumption during the first allocation period following the entry into force of this Regulation, and an amount of quotas corresponding to 70% of its current consumption during the second allocation period.

Removed:Recital 39 a (new): (39a) In its Communication of 14 October 2020 en titled “Improving access to justice in environmental matters in the EU and its Member States”, the Commission recognised that access to justice in environmental matters is not guaranteed in all Member States and called on the Council and the European Parliament to introduce explicit access to justice provisions in new and revised EU laws concerning environmental matters. This Regulation contains provisions which create equal conditions of access across the Union to national courts for members of the public who find that their public authorities are not in compliance with the obligations arising from it, in line with the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (the “Aarhus Convention”).

Added:Recital 13 d (new): (13d) MDIs are medical products subject to rigorous assessments including clinical studies to ensure patient safety. The Commission, Member States and their competent authorities, and the European Medicines Agency (EMA) should cooperate closely to ensure a smooth approval process of MDIs using low GWP fluorinated gases and alternatives to fluorinated gases, therebyensuring the transition to clean solutions without affecting the accessibility, availability and affordability of essential medicines.

Added:Recital 13 e (new): (13e) Some cooling equipment used in conjunction with batteries needed for the Union's energy transition could contain fluorinated gases. However, this sector was not analysed in the Impact Assessment accompanying this Regulation. In its report on the implementation of this Regulation, due by 1 January 2027, the Commission should assess the impact of this Regulation on the Union's battery market.

Added:Recital 13 f (new): (13f) In its communication of 14 October 2020 entitled "Chemical Strategy for Sustainability Towards a Toxic-Free Environment", the Commission pointed out that PFAS require special attention, considering the large number of cases of contamination of soil and water - including drinking water - in the Union and globally, the number of people affected with a full spectrum of illnesses and the related societal and economic costs, and it set the objective to phase out PFAS in the Union, unless it is proven essential for society. In order to ensure coherence with Union policy and a high level of protection of health and the environment, and given the availability of non-toxic alternatives, this Regulation should not encourage substitution of HFCs with fluorinated greenhouse gases that are also PFAS, whose production produces PFAS or otherwise decomposes into PFAS. If the prohibitions in Annex IV allow for the placing on the market and export of products and equipment containing PFAS, it is important that Member States work with the industry to direct investments into alternatives. This will also prevent stranded assets, should the revision of the REACH Regulation introduce PFAS bans. Immediately after the adoption of the revised REACH Regulation, the Commission should assess the coherence between this Regulation and that Regulation.

Added:Recital 15: (15) Non-refillable containers of fluorinated greenhouse gases, should be banned, considering that an amount of refrigerant inevitably remains in these containers when emptied, which is then released into the atmosphere. In this respect, this Regulation should prohibit their import, placing on the market, subsequent supply or making available on the market, use unless for laboratory and analytical uses, and their export. To prevent refillable containers from not being refilled and being discarded instead, undertakings should be required to produce a declaration of conformity including evidence of the arrangements for the return for the purpose of refilling when placing refillable containers on the market.

Added:Recital 15 a (new): (15a) As third countries, particularly developing ones, might not have stringent recovery obligations for fluorinated greenhouse gases or not have the appropriate infrastructure to manage those gases at the end of life, exports to third countries of products and equipment containing those gases could result in the release of those gases in the atmosphere. In the framework of the Union’s global efforts to mitigate climate change, the bans on products and equipment laid down in Annex IV should therefore apply to both their placing on the Union’s market and their export from the Union to third countries.

Added:Recital 17: (17) To implement the Protocol, including the gradual reduction of the quantities of HFCs, the Commission should continue to allocate quotas to individual producers and importers for the placing of HFCs on the market, ensuring that the overall quantitative limit permitted und the Protocol is not exceeded. The Commission should be able, exceptionally, to authorise an exemption for up to four years on the exclusion of hydrocarbons from the quota system for use in specific applications or specific categories of products or equipment. That exemption should be able to be renewed if, after assessment of a new substantiated exemption request, the Commission, through the committee procedure, concludes that alternatives are still not available. To protect the integrity of the gradual reduction of the quantities of HFCs placed on the market, HFCs contained in equipment should continue to be accounted for under the quota system.

Added:Recital 20: (20) Considering the market value of the allocated quota, it is appropriate to claim a price for its allocation. This avoids a further fragmentation of the market to the detriment of those undertakings that are in need of the HFC supply and already dependent on HFC trade in the declining market. It is assumed that undertakings that decide not to claim and pay any quota, for which they would be entitled in the year(s) prior to the calculation of reference values, have decided to leave the market and thus they do not get a new reference value. The quota price should increase over time in order to provide a stable revenue stream. The revenue should be used to cover administrative costs, to support capacity building, implementation and enforcement, as well as to accelerate the deployment of alternatives to fluorinated greenhouse gases.

Added:Recital 25: (25) To ensure that reports on substantial quantities of substances are accurate and that the quantities of HFCs contained in pre-charged equipment are accounted for under the Union quota system, independent third party verification should be required.

Added:Recital 28 a (new): (28a) Custom authorities should monitor if products covered under this Regulation that are declared to be in transit have actually left the customs territory of the Union. For that purpose, custom authorities should keep records about the undertaking making the transit.

Added:Recital 29: (29) Member States should ensure that customs authorities carrying out controls under this Regulation have the appropriate resources and knowledge, for example via training made available to them, and are sufficiently equipped in view of addressing cases of illegal trade of the gases and products and equipment covered by this Regulation.

Added:Recital 32: (32) The import and export of HFCs as well as products and equipment containing HFCs or whose functioning relies upon those gases from and to a State not party to the Protocol should be prohibited as from 2028. The Protocol envisages that prohibition from 2033, and the purpose of its earlier application under this Regulation is to ensure that the global HFC reduction measures of the Kigali Amendment provide the envisaged benefit to the climate as soon as possible.

Added:Recital 34 a (new): (34a) Without prejudice to the competences and sovereignty of Member States, penalties should be as coherent as possible. The Commission should therefore map out the differences in penalties between Member States every four years and submit a report to the European Parliament and to the Council.