Taiwan Proposes Regulating the Production and Consumption of Hydrofluorocarbons

On November 21, 2023, Taiwan's Ministry of Environment (MOENV) released the drafts of Regulations on Hydrofluorocarbons Management and High Global Warming Potential Greenhouse Gas Hydrofluorocarbons Regulated Under the Montreal Protocol, with the aim of controlling hydrofluorocarbons (HFCs) production and consumption. These drafts are open for comments until December 12, 2023.^1-2

Introduction to HFCs

HFCs are organic compounds widely used in air conditioners, refrigerators, aerosols, foams, and other products. To support the recovery of stratospheric ozone layer, this group of substances were introduced as substitutes for ozone-depleting substances like chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). Although HFCs do not contribute to ozone depletion directly, they are greenhouse gases with high global warming potentials (GWPs). Uncontrolled growth in HFCs emissions can undermine the efforts to protect the climate system. Recognizing this, on October 15, 2016, the parties to the Montreal Protocol adopted the Kigali Amendment to phase down HFCs. In alignment with this global initiative, MOENV has drafted these documents.

18 Types of HFCs in Focus

Under the Kigali Amendment, Annex F is added to include a list of controlled HFCs. Based on this annex, MOENV proposes regulating the following HFCs as controlled substances, whether they exist alone or in a mixture with other substances. For mixtures, only those featuring a GWP exceeding 53 are relevant.

Proposed Restrictions on HFCs

According to the draft of Regulations on Hydrofluorocarbons Management, the production of regulated HFCs will be strictly prohibited from January 1, 2024. Additionally, prior to importing or exporting regulated HFCs, companies are required to apply to MOENV for approval. As outlined in the draft, the HFCs consumption baseline for Taiwan will be set at 24,523,864.2 metric tons of carbon dioxide equivalent by January 1, 2024. Grounded in this baseline, MOENV will allocate quotas for the qualified applicants following certain principles.

The initial stage of HFCs consumption phase-down will last until 2028. After this period, the phase-down will technically begin in 2029, eventually capping HFCs consumption at 20% of the baseline level by 2045.