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Quota allocation, the HFC Registry and data reporting

Quota allocation and the HFC Registry

Update November 2014:

Registration: All companies that need to register in the HFC Registry can do so now.

This includes importers of equipment containing HFCs and all entities supplying or receiving exempted gases such as those HFCs imported for destruction, for use as feedstock, directly exported in bulk, as well as for use in military equipment, in semiconductor manufacture or for metered dose inhalers (MDIs).

Incumbents (see definition below) have been allocated Reference Values by Commission Implementing Decision (2014/774/EU) of 31/10/2014, which lists the names of the 79 companies concerned. The reference values themselves have been communicated by letter to each Incumbent. The quota of Incumbents for 2015 will be 89% of their reference value. As the required quantities declared by 'New Entrants' exceed the New Entrant Reserve, Incumbents will not receive any top-up from the New Entrants Reserve for 2015. Incumbents can also see their reference values and allocated quotas in the HFC Registry directly.

Quota allocation for New Entrants (see definition below): 334 companies submitted valid registration forms by the deadline of 1 July 2014 and have been considered for quota from the New Entrants Reserve. New Entrants are invited to consult their allocated quotas for 2015 in the HFC Registry directly. Quotas for New Entrants are allocated on a yearly basis based on a declaration process. The next declaration period for 2016 quota is foreseen for Spring 2015.

Regulation (EU) No 517/2014 foresees the implementation of a phase-down of hydrofluorocarbons (HFCs) under which the placing on the market of HFCs by each undertaking is subject to quantitative limits. From 1 January 2015 a quota is required for producers and importers placing at least 100 tonnes of CO2 equivalent of HFCs in bulk on the market in a calendar year.

The European Commission allocates quotas in accordance with Article 16, as well as Annexes V and VI, of the Regulation. The quotas are allocated in tonnes CO2 equivalent to importers and producers of 'bulk' gases. Quotas are not allocated to producers and importers of gases contained in products and equipment.

An electronic registry for quota for placing HFCs on the market, the HFC Registry, is being set up in line with Article 17 of the Regulation. Registration in the HFC Registry is compulsory for companies to receive a quota. It is also compulsory for producers and importers supplying, or undertakings in receipt of HFCs for the purpose listed in Article 15(2), namely HFCs imported for destruction, for use as feedstock, directly exported in bulk, as well as for use in military equipment, in semiconductor manufacture or for metered dose inhalers (MDIs).

Quota Allocation Process

In the quota allocation process, a distinction is made between two types of companies:

(1) Incumbents

Incumbents are companies that have reported, in compliance with Regulation (EC) No 842/2006, having placed more than 1 metric tonne of HFCs on the Union market in at least one year in the period 2009 to 2012. They may thus be allocated a quota on the basis of a reference value as well as by declaring additional anticipated quantities in accordance with Article 16(1), (4) and (5), and Annexes V and VI of the Regulation.

The reference value is calculated as the reported yearly average of the placing on the market from 2009-2012. When calculating the reference value, the Commission should take into account available data related to uses that are exempted from the phase-down in Article 15(2) points (a) to (e) of the Regulation.

(2) New entrants

New Entrants are those companies that have not reported according to Regulation (EC) No 842/2006 in the period 2009-2012. Quotas may be allocated to these entities on the basis of a pro rata distribution taking into account the declared needs (refer to Annex VI of Regulation (EU) 517/2014). Declaration of need and allocation of quota is repeated on a yearly basis.

The allocation process for 2015 quota is closed and will reopen in Spring 2015, for 2016 quota.

A formal notice to Incumbents and New Entrants inviting them to register and make a quota declaration for 2015 was published in the Official Journal in May 2014. The formal deadline for submitting documentation relevant to 2015 quota was 1 July 2014.

The submission of the registration forms or a declaration of intention to place HFCs on the market by itself does not give any right to place HFCs on the market in 2015.

Where to get more information?

For questions on quota allocation and the HFC registry, please email CLIMA-HFC-REGISTRY@ec.europa.eu

Disclaimer: This page was developed for the sole purpose of assisting companies in the the quota allocation process. Please refer to the Notice in the Official Journal and Regulation (EU) No 517/2014 for the full legal detail.

Air conditioners (c) CC BY-SA Ildar Sagdejev

Reporting obligations

Article 19 of Regulation (EC) No 517/2014 requires that production, import, including gases in equipment, export of bulk gases, feedstock use and destruction of the substances listed in Annexes I or II in the Regulation are reported annually before 31 March, for the previous calendar year. The Commission Implementing Regulation (EU) No 1191/2014 of 30/10/2014 determines the format and means for submitting the report.

Who has to report?

  • Producers, importers or exporters that produced, imported or exported one metric tonne or 100 tonnes of CO2 equivalent or more fluorinated greenhouse gases and gases listed in Annex II, including companies (producers or importers) to which quotas have been transferred
  • Undertakings that destroyed one metric tonne or 1 000 tonnes of CO2 equivalent or more of fluorinated greenhouse gases and gases listed in Annex II
  • Undertakings that used 1 000 tonnes of CO2 equivalent of fluorinated greenhouse gases as feedstock
  • Undertakings that placed 500 tonnes of CO2 equivalent of fluorinated gases or gases listed in Annex II contained in products or equipment on the market
  • Undertakings that placed on the market pre-charged refrigeration, air conditioning and heat pump equipment where hydrofluorocarbons contained in this equipment have not previously been placed on the Union market

Please note that reporting is normally done at the company level (not the facility level).

What needs to be reported?

The reporting requirements depend on the role of the reporting company in the market. A new reporting format in line with the new F-gas regulation is under preparation that will specify the required information that is relevant for the specific activities.

How to submit the reports?

Every year companies need to submit their report for the previous year before 31 March. . The entrance to the reporting tool, which is handled by the European Environment Agency (EEA), is achieved via the F-Portal. Reporting for 2014 data is planned to open in mid-February 2015. However, companies are encouraged to already start registering at this time.