EU F-gas Regulation: Model for Contribution to 43% Greenhouse Gas Reduction

Source: Pixabay

by Apoorva Sannasi (United States)  

This policy statement evaluates the impact of European Union (EU) F-gas Regulation 2024/573 on promoting sustainable innovation to achieve a 43% reduction in greenhouse gas (GHG) emissions by 2030. Human-made F-gases (Fluorinated Gases), with a global warming impact often thousands of times higher than CO2, are prevalent in everyday products (“About”). Incorporating evidence from company and EU regulation sources, the statement demonstrates how the regulation stimulates competition, compelling firms to prioritize sustainable solutions. It argues that this regulatory pressure encourages innovative approaches to eliminate F-gas, driving investments in F-gas-free alternatives. Through analysis of regulatory effects and industry responses, the statement underscores the pivotal role of policy frameworks in shaping sustainable practices and environmental outcomes. Thus, the EU F-gas Regulation 2024/573 inspires competition that effectively promotes sustainable innovation to reduce 43% of GHG emissions by 2030. 

F-Gas Climate Change Impact

F-gases are fluorinated greenhouse gases. They are human made and were originally created to replace ozone-depleting substances. However, these gases were found to trap the sun’s heat and remain in the atmosphere for several years, contributing significantly to global warming (“About”). In fact, the global warming potential (GWP) of one pound of SF6 is equivalent to twelve tons of CO2, and that is only the detrimental impact of one F-gas (Argonne). This is particularly concerning because F-gas is commonly used in daily-life items like heating and cooling systems. Because F-gases are so ingrained in the production industry, it would take significant time to eradicate them. Moreover, F-gas emissions, through leaks and aerosol sprays, contribute to 2.5% of all EU GHG emissions and 6% globally (“About”). Thus, the extremely high F-gas GWP and its deep integration into the production industry makes eliminating F-gas use urgent. Fortunately, the EU F-gas Regulation 2024/573 inspires competition that effectively promotes sustainable innovation to reduce 43% of GHG emissions by 2030.
EU F-Gas Regulation

The EU turned its attention to regulating F-gas in 2006. From 1990 to 2014, F-gas emissions nearly doubled, motivating the EU to pass stricter policies, giving us F-gas Regulation 517/2014. This regulation successfully used a quota system to focus on Hydrofluorocarbons (HFCs) while calling for measures to lower F-gas leakage, increase F-gas costs to discourage investments in it, and decrease its supply. Their goal of reducing HFCs on the EU market by two-thirds from 2015 to 2024 rings true (“About”).

Additionally, the 2014 regulation accelerated sustainable innovation in cooling technology. Items like air conditioning and refrigerants began using low GWP F-gases like carbon dioxide, ammonia, hydrocarbons, and hydrofluoroolefins (HFOs) (Low). Companies had to innovate and balance fire safety with strictly lowering cooling’s GWP. Businesses knew their F-gas products would phase out by the regulation, so they actually prioritized researching sustainable, safe cooling methods, leading to success and acceleration. Today, only low GWP refrigerants are allowed on the EU market (Risks).

Recently, the EU passed the F-gas Regulation 2024/573, which revises and amends the 2014 F-gas framework. This 2024 regulation mandates and motivates companies to take larger strides towards eliminating the use of F-gas in their products. For instance, companies are obligated to report their F-gas use through a portal and quota system. There are also new guidelines delineating deadlines for companies to manufacture technology at a certain level of sustainability. In addition, there are new labeling requirements to inform users and the EU of F-gas use and training requirements for F-gas handling to minimize and properly clean leaks (Risks).

As a result of the 2024 regulation, numerous companies have taken action to create F-gas free technology. For example, Deutsche Bahn manufactures ABB, SF6free switchgear technology. Specifically, they utilize AirPlus, a gas mix that has zero GWP (“Deutsche”). Switchgear Company uses DF2 Blue, and Siemens uses Clean Air, a mix of oxygen and nitrogen. Siemens also used this opportunity to package their sustainable work as Blue Portfolio (“Blue Line,” EconiQ, SF6-free, Stile). These companies developed their own alternatives to F-gas technology and marketed them uniquely to differentiate themselves. Initially, they struggled to ensure fire protection without F-gases, and the issue was not prioritized since their systems didn't require it. However, EU regulations now compel them to find F-gas-free solutions for insulation, cooling, and heat trapping. This legal requirement motivates them to innovate despite financial risks. Consequently, companies can use their sustainable innovations to attract more investors and customers by rebranding as leaders in sustainability. 

Moreover, the regulation inspired new innovation and challenges. Hitachi and TenneT partnered, announcing that they are tackling F-gas free high voltage switchgears. F-gases are used to prevent fires. Because high energy products are very flammable, 420 kV F-gas free technology is difficult to develop. However, due to the regulation's requirement for high voltage technology to be implemented by 2032, the demand for innovation was addressed by Hitachi, followed shortly by Siemens. They continue to develop even voltage switchgears, driven to do so by this regulation that calls for such rigorous energy spent finding sustainable solutions (“For Climate”). 

US vs EU F-Gas Approach

The US is behind in reducing GHG emissions by 43% with F-gas free tech because it has not been a priority. In fact, the EU began using low GWP gases for refrigerants in 2014, but a similar restriction only begins for the US in 2025 (IIF IIR). Furthermore,

although the US signed the Kigali Agreement to help phase down HFCs, the 2016 US administration was ignorant of its seriousness and their commitment (“Navigating”). AIM, American Innovation and Manufacturing, set a goal of reducing HFC use by eighty-five percent within the next fifteen years. However, setting such an ambitious goal requires addressing timelines and economic and innovation factors, which EU regulations consider successfully. Companies had to respect them in the EU because there were no other choices, forcing them to innovate with alternative technology to continue their business and keep their place in the market. On the other hand, the US Air-Conditioning, Heating and Refrigeration Institute commented on how the EU regulations are destructive and should be more flexible (Everitt). This mindset is why the US lacks sustainable innovation. US companies are not challenging their creativity and adapting quickly to the sustainable world that is necessary now. Instead, the US continues to ignore the urgency of sustainable innovation in the face of discouraging statistics (Everitt). The US boasts F-gas emissions that have “increased by 105% between 1990 and 2022. This increase has been driven by a 349% increase in emissions of HFCs since 1990” (“Overview”). While significantly worse than the stats that inspired the EU 2014 regulation, the US is still slow to take proper action against F-gas. Thus, the current US approach is lacking and should look towards adopting successful EU regulations practices.

Proposal

A possible solution is for the competition among the European companies to inspire US companies to innovate sustainably. As mitigating climate change marks the future, companies must invest in sustainable technology that is F-gas free. They must also fund more education campaigns for investors who will decide which companies will continue to exist in their current state and which need to transition to the sustainable practices that will help reduce GHG emissions by 43%.

A potential timeline for the US to catch up could unfold over the next six years. In the first year, companies should be given time to innovate towards F-gas-free solutions. Those already leading in sustainable innovation should focus on integrating their products into the US market to ensure sustainable investments. Subsequently, each year should see stricter restrictions on allowable F-gas levels, making use of existing technology in the marketplace. Furthermore, the US hosts elections this November, where voters can demand change and vote for climate activists. US change would require stronger cooperation from the EPA and the executive branch for accelerated change by 2030.

While the EU has implemented various regulations to phase out F-gases strategically, there remains room for improvement. For instance, businesses should be prohibited from investing in F-gas suppliers or products. If unsustainable, even longstanding partnerships with universities or other entities should be terminated. Governments should incentivize these partnerships with financial support since the transition is expensive. Furthermore, businesses must raise awareness about F-gases by partnering with climate activist organizations and presenting its background and their solutions. This offers businesses publicity and the public awareness. Companies must also disclose their use and the harms of F-gases to customers, empowering customers to make informed decisions amid the phase-out process. Additionally, transitioning older buildings to F-gas-free cooling and heating systems can be challenging due to existing infrastructure. The EU should issue green bonds to allocate more funds in support of these renovations. Investing in these buildings is investing in a future rooted in and built upon sustainability.

The US and EU must collaborate, with the EU guiding the US to take large, strategic strides towards F-gas elimination. Promoting inspiring competition within companies would force US companies to prioritize sustainable innovation, just as EU companies did. The EU and the US must work together toward goals like the COP 28 triple renewable power by 2030 goal and the Global Methane Pledge. I urge them to share their goals but also their significant progress at COP 29. 

Global F-Gas Elimination Pledge

The EU implementation of F-gas Regulation 2024/573 marks a pivotal step in combating climate change. It mandates stricter measures for companies to transition to sustainable alternatives. The significant contribution of F-gases to global warming and their integration into everyday products highlight the urgency of swift action to eliminate them. Building on previous efforts, the regulation stimulates innovation in sustainable cooling and heating technologies, with a specific focus on switchgears and SF6. It has spurred companies to develop F-gas-free technologies, demonstrating the potential for market-driven solutions.

However, global cooperation remains essential to address F-gas emissions effectively, especially in light of slower approaches like that of the US. Moving forward, sustained collaboration, innovation, and regulatory reinforcement are essential to achieve the goal of reducing 6% of GHG emissions towards the 43% target by 2030 as well as towards COP 28 triple renewable power by 2030 goal. The EU and the US should also work toward a Global F-Gas Elimination Pledge and share their progress at COP 29. The US must prioritize sustainability, supporting the transition to F-gas-free technologies while the EU enhances its framework to prohibit investments in F-gas suppliers and raises awareness to further advance sustainability efforts, all of which are imperative for reaching the emissions reduction target by 2030.

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“Deutsche Bahn Speeds Ahead of the Regulatory Curve With ABB SF6-free Switchgear Technology.” News, 7 Dec. 2022, new.abb.com/news/detail/97673/deutsche-bahn-speeds-ahead-of-the-regulatory curve-wit h-abb-sf6-free-switchgear-technology.

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