European Partnership

for Energy and the

Environment

USERS OF THE FLUORINATED GASES WELCOMES POLITICAL AGREEMENT REACHED BY MEMBER STATES ON PROPOSAL TO CONTROL AND MONITOR GREENHOUSE GAS EMISSIONS

Brussels, 14 October, 2004: The European Partnership For Energy and the Environment (EPEE),* representing businesses involved in the development and manufacture of equipment which relies on HFCs as a refrigerant welcomes the Political Agreementreached today by 25 Member States meeting in the Environment Council in Luxembourg on the proposal for an EU Regulation on fluorinated gases to control and monitor greenhouse gas emissions.

EPEE is a strong supporter of an EU-wide framework which will ensure that fluorinated gases are used responsibly and properly contained. F-gases currently contribute less than 2% of total greenhouse gas emissions in the European Union are forecasted to remain less than 3% by 2010.

The agreement reached included a change to a dual-legal base: one covering placing on the market and use control aspects and the second covering monitoring, training and certification of workers, recovery and data reporting. EPEE believes this compromise is an appropriate way to successfully marry single market and environmental concerns.

According to Friedrich Busch, Director General of EPEE

“The Ministerial agreement reached today is an important step to an EU- wide system of responsible use, which will ensure emission reduction across the EU. EPEE members look forward to playing their part to make this future regulation successful.”

EPEE looks forward to the European Parliament moving forward on this proposal in a Second Reading ahead of the final adoption of this legislation.

*****ENDS*****

EPEE Contact for further information on this issue:

Darcy Nicolle, EPEE Secretariat, Brussels 02 7391614

Notes to the Editor:

**The European Partnership for Energy and the Environment (EPEE) is a broad-based group of responsible companies, national associations and European associations active in the European air-conditioning, heat-pump and refrigeration industry. It was formed in September 2000 to contribute to the development of effective European policies to reduce greenhouse gases from the use of refrigerants. Further information can be found on-line:

Background to the proposal

The approach and need for EU legislation on f-gases was agreed by stakeholders in the conclusions of the final report of the European Climate Change Programme (ECCP). This programme proposed a range of cost-effective proposals to help the EU meet its emission reduction target under the Kyoto Protocol. The ECCP process carried out thorough assessment of the fluorinated gases and was undertaken by all the stakeholders, government, industry, environmental NGOs and academia.

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The agreed approach was clearly orientated toward better monitoring and containment of these gases, based on the successful containment policies already in place in the Netherlands and Sweden. This view was consequently endorsed by the Commission and Council of Ministers in autumn 2001. The Ministers welcomed a future proposal which would look at containment of emissions, monitoring as well as marketing and use restrictions ‘where appropriate, for relevant applications where viable alternatives are available and if improvement of containment is not feasible, taking into account existing voluntary initiatives by some fluorinated gases industry sectors, where the development of alternatives is still ongoing.’

The European Parliament completed its First Reading of the proposal on 31 March 2004. The original approach of the Commission ensured the freedom of choice and emphasised the potential of containment to reduce emissions was further strengthened by the European Parliament’s adoption of amendments to the containment and reporting provisions. The Parliament also endorsed a set of amendments on training and certification which will ensure free movement of personnel and mutual recognition of qualifications across Europe. The Parliament voted for a single Internal Market (Article 95) legal base and rejected provisions banning HFCs in a wide range of refrigeration and air conditioning applications, such as domestic and commercial refrigeration and stationary air conditioning.

Timing for the further consideration of the proposal

The proposal is being considered under the co-decision procedure, The Second Reading in the European Parliament (based on the council Common Position) is expected to start in early 2005. Once complete the Council of Ministers will start-up discussions again on the proposal – if the Council and Parliament positions are convergent the Council will move to adopt the proposal. Should there be big differences between the Parliament and Council positions – a third Reading /Conciliation will take place on this issue.

The proposal is not expected to be adopted before the start of 2006 at the earliest.

What are Fluorinated gases?

The fluorinated industrial gases (Hydrofluorocarbons (HFCs), Perfluorinated Carbons (PFCs) and Sulphur Hexafluoride (SF6)) are widely used in daily-life applications such as refrigerators, air conditioning, thermal insulation and medical sprays. The gases are fluorinated to confer on them distinct environmental and safety benefits. (non-ozone depleting, low toxicity and low flammability) for every-day use.

However, the high Global Warming Potential (GWP) of these gases has raised environmental concerns and the three gases were therefore included in the basket of six greenhouse gases identified in the Kyoto Protocol, together with carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O).

Hydroflourocarbons (HFCs) are a family of industrial fluorinated gases. They are non-flammable, energy efficient, recyclable and have a very low toxicity. HFCs are used as a replacement for ozone depleting substance such as CFC and HCFCs. They do not deplete the ozone layer because they contain no chlorine.

Who will be affected by this proposal?

The Commission estimates that the future Regulation will result in a reduction of emissions from F-gases to the tune of 25 million Tonnes of CO2-equivalent, in the sectors dependent on fluorinated gases are expected to reduce greenhouse gas emissions That is more or less a 30% reduction versus the Business as Usual scenario.

The domestic and commercial refrigeration and air-conditioning sector, food retailing sector, the car industry (manufacturers and part suppliers), international transport industry, semiconductor industry, electrical grid operators, the fire fighting industry, the health care sector, magnesium smelters, aerosols manufacturers and the building construction sector.

European refrigeration Sector fact and figures

EPEE estimates that some 1 million people are employed in the sector across the 15 Member States: this covers those employed manufacturing the systems and machinery in the sector and on the production of the gases, installers and maintenance personnel, and other key services such as distribution, recovery /recycling and transportation.

EPEE estimates that the value-added from the industry to the EU’s GDPamounts to some €50 billion annually.

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EPEE Secretariat, 118 Avenue de Cortenbergh, Box 8, 1000 Brussels, Belgium

Tel: 32-2-739-16-14, Fax: 32-2-737-95-01, E-mail: ,