F-gas regulation revision

1. F-gas regulation revision Vienna, February 27th, 2014 Bernard Philippe Product & Technology / Industrial Refrigeration EA

2. What is Regulation No CE/842/2006 (F-Gas Regulation)? • Implemented in June 2006 to help EU countries meet their Kyoto Protocol emissions targets; • Aims to minimize emissions of ‘F’ gases into the atmosphere; • Targets certain Fluorinated gases that contribute to global warming: - HFCs – air conditioning, refrigeration, fire protection, foam blowing - PFCs – semi-conductor, pharmaceutical, and cosmetics production • SF6 – magnesium and aluminum production, high-voltage switches Background I - original F-gas regulation • Main Requirements: • Equipment inspection and containment requirements; • Personnel training and certification; • Reporting requirements on quantities produced, supplied, and used.

3. Background II - revision process • Revision process was included in the CE/842/2006 • A first proposal for the revision of the F-gas regulation of 2006 was published in November 2012; • The Proposal contained a number of controversial issues, that the industry did not see fit practically; • There has been since a consideration by the EU institutions and active involvement of NGOs and the industry in the EU institutions intelligence gathering; • After a long, long process of consideration and negotiations a political agreement was reached between the EU institutions and the EU member states on 16 December 2013; • The agreement text is being legally checked and will be presented for a final vote at the European Parliament on 13 March 2014; • It is certainly expected that the text will be adopted, after which the regulation will enter into force in January 2015

4. Finally an agreement !

5. Main outcomes of the new text • HFC cap and phase-down up to 79% in 2030; • Bans or GWP thresholds on the use of F-gases in some new equipment, such as refrigerators, commercial refrigeration, split air conditioners (as well as insulating foams and technical aerosols); • Conditions (for example, reporting on quantities of HFCs contained and the need for HFC import quotas) on the placing on the market of products and equipment containing or relying upon F-gases; • Restrictions on servicing/maintenance of equipment using HFCs. • Further rules regarding containment, use, recovery and destruction of HFCs as well as training & certification;

6. Main provisions – Phase Down • A phase down on the use of HFCs (Hydro Fluoro Carbons) in the EU through gradual steps, down to a 79% reduction by 2030. Baseline: 2009-2012 annual average • The reference includes the CO² equivalent of the HCFCs (R-22) still being used during the reference years. • The phase-down will include the fluids contained in pre-charged equipments imported into the EU

7. Main provisions – bans • A ban for fluids with GWP>2500 for all new stationery refrigeration applications as of 2020, except for temperatures below minus 50°C. • The maintenance of existing systems with GWP>2500 by using virgin refrigerants will be prohibited as of 2020, with an allowance until 2030 when using reclaimed and recycled fluids.

8. Main provisions – bans • Multipack centralized cascade systems in commercial refrigeration will have a 150 GWP limit on the low stage of the cascade as of 2022. For the higher stage of the cascade GWP < 1500 allowed • For small single split systems with a charge <3kg, there will be a limit of GWP<750 for new systems as of 2025.

9. Main provisions – Leak checking • Leak Checking applying to stationary refrigeration equipment, stationary air-conditioning equipment, stationary heat pumps, refrigeration units ofrefrigerated trucks and trailers • 5 ≤ Charge < 50 teq CO2 : leakage check at least every 12 months (24 months if leak detection system installed) • 50 ≤ Charge < 500 teq CO2 : leakage check every 6 months (12 months if leak detector system installed) • 500 teq CO2 ≤ Charge : leakage check every 3 months (6 months if leak detector system installed) • Leak detection system with remote alarm for all RAC system ≥ 500 teq CO2

10. Other provisions • The legislation will also strengthen the rules about : • Containment of refrigerant charges, • End of life recovery, • Training of technicians and reporting. • Reporting • Labelling • Pre-charged equipment

11. Johnson Controls – General perception Johnson Controls welcomes this forthcoming legislation, as it provides a reasonable and balanced approach. HFCs will be subject to a phase down, but not to a phase out as was requested by promoters of radical and unrealistic approaches. This phase down is ambitious, but realistic.  

12. Johnson Controls – Comments • The new provisions listed above had already been widely anticipated in our products portfolio: • In industrial refrigeration where R404A or R507 were used in the past, we will continue to offer a variety of options for refrigerants, including both natural (R717, R744) and HFC based. In addition, wherever possible, we will provide equipment that can be retrofitted to lower GWP solutions. • Our current range of air conditioning products uses R410A or R134a, and water in absorption chillers. In the forthcoming legislation, there is no specific ban that would affect any of our air conditioning products. There is also no direct ban or restriction on the fluids to be used for the future maintenance of these products.

13. JC Communication – Coming next • To help compliance with the phase down, we will keep working on solutions to reduce the GWP of the fluids used in our new products, including natural refrigerants. We are also working at retrofit solutions to be able to use lower GWP fluids in our products. • Generally speaking, we will use the lowest GWP fluids that make sense from a safety, reliability, efficiency and economic standpoint for every application.

14. AHRI / AREP

15. AHRI / AREP

16. AHRI / AREP

17. AHRI / AREP

18. AHRI / AREP

19. AHRI / AREP

20. Johnson Controls has always been committed to sustainability through our strong emphasis on energy efficient equipment. Over the last 25 years, Johnson Controls products have pioneered the industry by eliminating ozone depleting refrigerants. Currently, we are again leading the industry in a new evolution of refrigerants, leveraging our considerable experience with naturally occurring refrigerants, such as Ammonia, hydrocarbons, and CO2, and by working with suppliers to develop the next generation of chemical refrigerant solutions, including the use of water as refrigerant, that minimize the total effect of our equipment on global climate change

21. Questions…?