The F-Gas Regulation at a glance - another step towards a climate-neutral economy

The F-Gas Regulation applies to F-Gases and mixtures listed in Annex I III of the regulation, including HFCs and perfluorocarbons ("PFCs") and, by way of example, sulphur hexafluoride ("SF6") and nitrogen trifluoride ("NF3"). These artificially produced gases often have a global warming potential thousands of times greater than carbon dioxide and are mainly used in industrial applications, e.g. in refrigeration equipment and air-conditioning equipment. The regulation also covers products and equipment that contain or require F Gases.  
In addition, the F-Gas Regulation has become stricter in several areas compared to the old regulation:  

• Companies that place refillable containers for F-Gases on the market must submit a declaration of conformity on the binding arrangements made for the return of the container (Article 11 para. 4);
• Companies that produce HFCs require a so-called production right (Article 14 para. 2), which is only granted by the EU Commission after a successful registration via the F-Gas Portal; and
• The importer and exporter require a license for the import and export of the substances listed in Annexes I – III of the F-Gas Regulation and of products containing these substances (Article 22 para. 1).

The main regulation for operators and manufacturers of equipment is "hidden" in Article 4 para. 3: Operators and manufacturers of equipment containing fluorinated greenhouse gases or operators of facilities in which fluorinated greenhouse gases are used must take all necessary precautions to prevent any unintentional release of F-Gases. This includes carrying out leak checks in accordance with Article 5 and setting up leakage detection systems (Article 6). In the event of a leak, operators and manufacturers must ensure that the equipment or facility is repaired immediately and that the repaired equipment is inspected by a person certified in accordance with Article 10 within one month of the repair at the latest. 

In addition, there are record-keeping obligations (Article 7 para. 1 – para. 2); recovery obligations regarding fluorinated greenhouse gases through recycling, reclamation or destruction (Article 8) and the obligation to check whether a mandated company has the necessary certifications for the activity to be carried out (Article 10 para. 12).

Regarding the placing of products on the market, Article 11 and Article 12 of the F-Gas Regulation are aimed in particular at regulating stationary refrigeration, freezer and air-conditioning equipment with a high greenhouse gas potential, also known as “global warming potential” ("GWP"). 

Manufacturers and importers may only place these products on the market if the products comply with the parameters specified in Annex IV and are labelled in accordance with Article 12 para. 4 in a clearly legible manner and in the official language of the Member State.

In Articles 14 to 21, the F-Gas Regulation excludes the production and placing on the market of HFCs from the preceding general provisions of Article 4 para. 1 and para. 6 regarding F-Gases: 

• According to Article 14 para. 3, the production of HFCs is prohibited unless the Commission has allocated production rights to the producer in accordance with Article 14 para. 3 in conjunction with Annex V amounting to 60% of the annual average of their respective production in the reference period 2011 to 2013.
• The same applies to the placing on the market of HFCs: Manufacturers and importers may only place HFCs on the market in accordance with Article 16 if the Commission has allocated them a quota for this purpose in accordance with Article 17 – whereby products and equipment that have already been precharged are also covered by the quota system.

The Commission is gradually reducing the total quantity of HFCs that can be placed on the market in the EU until they are completely banned in 2050. 

Producers and importers can only obtain production rights and quotas via the newly introduced F-Gas Portal regulated in Article 20. 

The F-Gas Regulation requires member states to adopt provisions on penalties, which must be notified to the Commission by January 1, 2026.

The sanctions for violations of Regulation (EU) No 517/2014 were previously based on Section 10 of the Chemicals Sanctions Regulation ("ChemSanktionsV"). For misdemeanours in connection with F Gases, such as the supply of F-Gases to unauthorized third parties, the authority previously imposed a fine between EUR 10,000.00 and EUR 200,000.00; for crimes, such as the intentional unauthorized placing on the market of F-Gases, the authority even imposed a prison sentence of up to 5 years if the distributor had thereby endangered the life or health of another person or another person's property of significant value.

It is to be expected that the German legislator will amend the Chemical Sanctions Regulation based on the F-Gas Regulation. As the F-Gas Regulation imposes stricter requirements on operating, placing on the market, importing, exporting, etc., it can be expected that infringements will be punished more severely in future.

Conclusion

For affected companies, especially in the industrial sector of stationary and mobile refrigeration equipment, it is advisable to check whether the products and equipment they produce are affected by the provisions of the F-Gas Regulation, such as the gradual restriction of placing HFCs on the market and the proper notification and registration in the F-Gas Portal. If necessary, companies must take measures (keywords: use of natural refrigerants) to implement the provisions of the F Gas Regulation in a timely manner. 

To this end, companies must pay attention to further legal developments. The Commission must specifically adapt Regulation (EU) No 307/2008, Regulation (EU) No 306/2008, Regulation (EU) No 2015/2066 and Regulation EU No 304/2008 on the basis of the F-Gas Regulation. The scope of the amendments is currently still open.