The ambition of the European Union's F-Gas Regulation to reduce use of higher-GWP HFCs through a combination of bans and production phasedowns has been widely admired — indeed it looks set to be the model for what happens in the U.S. and the rest of the world.

But the release of the initial official HFC volume data by the European Environment Agency has put the credibility of the fundamental F-Gas concept a phasedown starting from a 100 percent baseline and stepping down annually using a system of quotas for producers and importers into the spotlight.

Simply put, the amount of HFC in the EU in 2014 was considerably higher than expected. At 272 million tonnes CO2 equivalent, it was a massive 61 percent higher volume of HFCs placed on the market than in the previous year. That means the baseline figure for phasedown will be much lower than the actual volume.

In theory, this would make the numbers for the whole 15-year phasedown wrong, and it risks throwing the whole plan into confusion, unless the volumes are rephased quickly. Unsurprisingly, there have been calls from affected parties for the EU to step in and sort out the data sooner rather than later to bring confidence back into the process and to ensure that Europe's ability to reduce emissions from the refrigerants is maintained in the way it has promised.

It is generally accepted there are two reasons for the unexpected additional volumes:

  • importers of small volumes who didn't previously report their importation to the authorities
  • importers or producers who have "stockpiled" gas to augment the volumes they would be allowed under the quota system that the F-Gas Regulation created from Jan. 1, 2015

The former is strictly speaking in breach of the F-Gas Regulation, while the latter is a gray area legally, but surely must be seen to be against the spirit of the regulations.

As of now, it is not known which of these is the main cause, although stockpiling appears the most likely. But neither of these will help reduce emissions, so there have been calls both to ascertain the extent of the problem and to stamp it out.

One of the groups in the forefront of calls for action is the European Fluorocarbon Technical Committee (EFTC), representing producers of HFCs.

Last week, EFTC issued a statement stressing: "Potential large stockpiles of HFCs could jeopardize the EU's ability to reduce HFC greenhouse gas emissions, if checks are not carried out as soon as possible. Data collected by the European Environment Agency on the placing on the market of fluorinated greenhouse gases has led to considerable speculation as to the presence of large stockpiles of HFCs throughout the EU."

Clearly part of EFTC's alarm is the potential number of new sources of HFCs appearing alongside its quota-holding members, but nevertheless it makes a vital case. It emphasises that in practice, any large quantities of stockpiled HFCs may have the effect of delaying actions to implement the transition to lower-GWP fluids.

The fundamental point EFTC makes is it needs speedy and comprehensive checking of the data: "In order to better understand the impacts of the potential HFC stockpiles on EU emissions and on the functioning of the F-Gas Regulation, it is vital that the data used in the calculations by the EEA are thoroughly checked. Therefore the verification processes should receive careful attention."

"Article 19 of the F-Gas Regulation covers the reporting and verification of data," says EFCTC Chairman Dr. Nick Campbell. "It states that every company that has placed 10,000 tonnes CO2 equivalent of HFCs on the market in a calendar year shall, by June 30 of the following year have its data verified by an independent auditor. Furthermore, Member States and the Commission can demand to see the verification report."

EFTC concedes that, given there are in excess of 400 companies registered to import HFCs into the EU, a comprehensive auditing of the reports would be a major task, but the group concludes: "EFTC believes that it is essential that Member States carry it out as soon as possible for 2014 import data."

How feasible this will be in practice is yet to be established some countries are better set up to do this than others but the EFTC makes its case in words that are pretty strong for such an interest group: "Without such a check on reporting, it is hard to demonstrate that the F-Gas Regulation is credible and that HFC controls within Europe are working."

Of course, the big question is: What should happen if companies are found to have breached the regulation? EFTC is calling for sanctions, but I have written before about the general lack of confidence in enforcement of EU regulation when it relates to cooling ,because there isn't much to speak of.

It seems that swift action is required on two fronts firstly, ensuring the volumes are verified and the F-Gas phasedown recalculated if required; and secondly that the stockpilers and under-the-radar importers are identified.

Those who will have the responsibility of introducing similar phasedown controls and reporting in the U.S. would do well to take note it is vital to get the baseline figure thoroughly verified, and to ensure that the practice of stockpiling is also rooted out.