Politecnico di MilanoXV European Conference "Refrigeration and

Air Conditioning", 7th-8th June 2013

Andrea Voigt, EPEEa.voigt@epeeglobal.org

1

Challenging times ahead…

Dr. Fatih Birol, IEA Chief Economist at the launch of World Energy Outlook 2012 in Brussels:

“Policy makers face critical choices in reconciling energy,

environmental & economic objectives”

2

EPEE: The full value chain of the Refrigeration, Air Conditioning and Heat Pump Sector

A major part of the European RAC & HP industry

• > 200,000 direct employees in Europe

• > € 30 billion turnover in Europe

3

EPEE’s main fields of activities• Promote Energy Efficiency

– Ecodesign Directive– Energy Efficiency Directive– Eco Label and Energy Label– Energy Performance of Buildings Directive– Renewable Energies Directive …

• The F-Gas Regulation and its revision– Maintain and strengthen the F-Gas Regulation– Support a technically and economically feasible phase-down

• Raise awareness on Market Surveillance– Importance of properly enforcing and policing legislation

• Promote an HVACR association network at EU level4

EPEE in Europe1. Small – medium –

large size entreprises

2. Over 200,000 direct employees

3. Production throughout Europe

4. Using all types of refrigerants

Why a revision of the F-Gas Regulation?

• The EU low carbon roadmap aims for 72% emission reduction for F-Gases, Methane, N2O in 2030

• The existing F-Gas Regulation is expected to stabilise emissions at today‘s level

• To achieve the goals of the low carbon roadmap more action is needed

6

The need for reliable data

EPEE funded two studies:– French ERIE / ARMINES and British SKM Enviros research

institutes

Main Focus on Refrigeration, Air-Conditioning and Heat Pump Market (RAC):

– 80% of total F-Gas emissions

– Analysis of 7 main sectors, 43 subsectors and 14 alternatives to currently used refrigerants.

Other key applications: – Technical & medical aerosols, foam blowing, fire protection

7

Two Studies – Coherent ConclusionsRefrigerant Bank – 1990 to 2010

CFC and HCFC phase-out:less CO2-eq. emissions despite market growth

ERIE/ARMINES and SKM Enviros both state that:

• The refrigerant bank (in metric tonnes) more than doubled between 1990 and 2010

• Expressed in million tonnes of CO2-eq, the bank decreased by >10%

• Emissions (in million tonnes of CO2-eq) decreased by > 10%

8Source: Erie / Armines, 2011

Two Studies – Coherent ConclusionsBAU emission reduction scenarios – 2010 to 2030

9

BAU: > 15% emission reduction vs. 2010

• Based on full implementation of F-Gas Regulation & current trends• 140 million tonnes of CO2-eq emissions in 2010 • 20 million tonnes CO2-eq emission savings in 2030 vs. 2010

Source: SKM Enviros, 2012Source: Erie / Armines, 2011

Two Studies – Coherent ConclusionsCommercial Refrigeration – a great potential

10

1990 2000 2010 2020 2030 2040

BAU: 20 % emission reduction in 2030 vs. 2010• Market: Lower GWP alternatives have already been introduced• GWP: Quick gains in terms of emission reduction by retrofills• Leakage: Benefits from full implementation of the F-Gas Regulation

0

10

20

30

40

50

60

70

80

F Direct GHG EmissionsMtonnes CO2Commercial Refrigeration, Scenario A, EU27

Source: SKM Enviros, 2012Source: Erie / Armines, 2011

Two Studies – Coherent ConclusionsMaximum emission reduction scenarios – 2010 to 2030

11

Maximum scenarios: > 60% emission reduction• Both maximum scenarios currently not achievable as they are based on wide

introduction of mildly flammable refrigerants

• 90 million tonnes CO2-eq emission savings in 2030 vs. 2010

Source: SKM Enviros, 2012Source: Erie / Armines, 2011

What is really achievable in RAC ?Much more than „Business as Usual“!

0

20

40

60

80

100

120

140

160

180

200

1990 2000 2010 2020 2030 2040

Emission reduction of:

- 50% vs. 2010

74 million tonnes CO2-eq. including

ODS

50 million tonnes CO2-eq. only HFCs

Source: SKM Enviros, 2012

12

-50 Mt

-74 Mt

How ?Based on SKM Enviros and Armines / Erie:

By improved F-Gas rules

30% HFC consumption reduction in 2020

Re-assessment

65% HFC consumption reduction in 2030 13

What does the Commission propose (Nov 2012)?

14

Phase-down

HFC Consumption

reduction

Year 2020:-37%

Year 2030:-79%

Bans

Refrigerants with a Global

Warming Potential

> 2500

HFCs in hermetically

sealed products

Pre-Charging

Containment & Competence

Regular leakage checks

Certification and training for

installers

EU Climate Goals

… and the other EU Institutions?

15

The EU Parliament:Co-decides

Elections in 2014Very high level of ambition

Members of Parliament want „quick wins“ to secure their re-election: • HFC bans in stationary a/c and

refrigeration as of 2020• Very steep phase-down• Service & Maintenance ban as of

2017

The Council of the EU:Co-decides

Difficult economic situationLower level of ambition

Gap within the Council between level of amibition in the North and the South / Central EU

EPEE supports the Commission‘s rationale…

… provided that:

1. The phase-down steps are softened to achieve a 65% reduction and the baseline is adjusted. (Annex V)

2. High global warming potential refrigerants are allowed to be used for service & maintenance in small systems below 40tons of CO2-eq and very low temperature applications <-50°C (Art. 11.3)

3. Recycled refrigerants can be used without restriction (Art. 11.3)

4. Pre-charged equipment becomes part of the quota system (Art. 12) 16

ProtectsHealth, Safety, Energy

Efficiency

Protects SMEsAddresses major part of

emissions

Ensures recoveryPrevents emissions

Promotes EU businessSaveguards phase-down

Adjustment of the phase-down baseline Why and how?

17

COM proposal EPEE proposal0%

20%

40%

60%

80%

100%

120%

Adjustement for HFCs con-tained in pre-charged equipment

Adjustment for HCFCs con-tained in existing equip-ment

Total quantity of HFCs produced and imported in the EU during 2008 to 2011 (Commission pro-posal)

Starting point for phase-down reduction steps in 2015

EPEE is concerned about the EU Parliament‘s proposals

18

Energy Efficiency, Safety & Affordability will be jeopardized, by:

1. A too steep phase-down

2. A too early entry into force of the service & maintenance ban

3. Arbitrary bans on stationary a/c and refrigeration equipment

4. A ban on pre-charging of equipment

5. A single environmental legal base

What happens next?Earliest possible adoption beginning of 2014

19

EU Commission

EU Parliament

Council of EU

DG Climate initiates proposal

Other DGs need to approve

Proposal adoptedNov 2013

ENVI CommitteeVote: 19 June

Plenary vote: Q4 2013 / Q1 2014

COREPER

Ministers of EU member states

DG = Directorate GeneralENVI = EnvironmentCOREPER = Committee of permanent representatives

Progress report: 18 June

What can you do?

Engage with national decision makers:• Input into the position of your national

government – ministry of environment, economy

Engage with European decision makers:• Members of the European Parliament are

also elected in your country – and they want to be reelected. Talk to them!

Speak with one voice:• Coordinate your input with other

associations at national level and at EU level.• Coordinate with us! 20

Contact details:

EPEE46 Avenue des Arts

1000 Brussels, Belgium

email: a.voigt@epeeglobal.orgWeb: www.epeeglobal.org

Thank you very much for your attention !

21