MIPIGGS Newsletter
November 2004
www.mipiggs.org

Editorial: Governments Set 'Perfect Storm' Conditions For Explosion in HFC Pollution

European governments have created "perfect storm" conditions for an explosive growth in air pollution by HFCs, rapidly thickening the atmospheric blanket of gases causing global warming.

EU Ministers have effectively disabled the fire brigade by making Austria and Denmark, who lead in requiring non-HFC technology, vulnerable to legal action by the F-gas industry (see below). At the same time, they have gutted the proposed EU Directive on f-gases of any measures to require recovery of HFCs from fridges, omitted any requirements to use non-HFC technology and allowed the rapid rise in HFC mobile air conditioning to continue unchecked.

Unless the new European Parliament now intervenes - for which it has several options - Europe will slip from being a world leader on defeating the threat of f-gases to be simply another marketing playground for the US based HFC industry.

The signs are bad: atmospheric concentrations of HFC 134a are leaping up (see Arctic report below), reflecting the wholesale loss of HFCs from all main systems they are used in. The notion of 'containment', on which the current EU draft rests, is demonstrably a complete fiction, and key assumptions about leak rates are now shown to be wrong (below).

While countries such as the UK urge decisive action on CO2 emissions, any good work done there is being undone by their complacency over HFCs.

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Arctic - Huge Rise in HFC Air Pollution

In October Norwegian scientists participating in an EU funded monitoring network reported a massive 25% increase in atmospheric concentrations of HFCs over the Arctic in 2003. Frode Stordal at the institute for atmospheric research (NILU), which carried out the monitoring, described the rate of HFC increase to Aftenposten newspaper as "dramatic". This even outpaced the 20% increase recorded in 2002.

The Norwegian findings reinforce those of Atlantic Consulting, reported in previous editions of this newsletter that containment of F-gases has failed. Atlantic cited industry's own data to show that HFCs leak just as badly as did their notorious ancestors, CFCs.

The measurements of greenhouse gases and ozone depleting substances at the Zeppelin Station near Ny-Ålesund on Svalbard at 78°54' N are carried out by the Norwegian Institute for Air Research (NILU) and are financed by the Norwegian Pollution Control Authority (SFT). Other stations in the network are in Ireland, Italy and Switzerland. See http://www.sft.no/english/news/dbafile12240.html

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UK - Massive Rise In Official Figures For HFC Pollution

Recent UK Government figures show climate-changing air pollution from HFCs is far greater than previously admitted. HFC industry sources suggest the picture is similar Europe-wide. (Most of this involves HFC 134a, 1300 times worse for global warming over 100yrs than CO2).

Written Parliamentary Answers (Hansard, Mon 4 October 2004) show that HFC emissions from mobile sources are 63% greater than previously acknowledged and those from static sources are 16% greater.

Environment Minister, Eliott Morley, answering a question from Peter Ainsworth MP, said that HFC leaks from mobile air conditioning in the year 2000, reported in 2002 (kt CO2 equivalent) as 481 are now officially put 785 ktCO2. Similarly, the estimate of year 2000 emissions from commercial refrigeration has jumped from 2265 to 2640 ktCO2, while that from Metered Dose Inhalers has escalated from 325 to 894 ktCO2 eq.

Morley attributed the rapid increase to 'faster penetration of MAC in the UK vehicle fleet' than expected, and 'changes to emission factors' (ie it leaks a lot).

This admission further undermines the UK's claims that bans or tighter restrictions on the use of HFCs in cars and vans are not needed, and that paper-controls rather than bans will work to prevent pollution from refrigeration, because 'containment' will prevent HFC pollution.

The picture across Europe may be as bad or worse. Ineos Consultant Archie McCulloch admitted at a London GLOBE seminar at the House of Commons on 20 May, that probably every country in Europe had under-estimated F-Gas emissions by at least 40%.

March Consulting has reported that in Sweden, non-propellant dose inhalers now account for 80% of the market but in the UK and Germany the fraction is tiny.

Earlier this year the UK government's faith in 'containment' led it to ignore Atlantic Consulting's study "HFC Containment has already failed", first produced in Feb. 2004, (published in Atmospheric Environment, August 2004) which showed that leak rates of HFC-134a over the period 1990-2000 are the same as they were for its predecessor, CFC-12, in the mid-1980s." Atlantic concluded: "Clearly, HFC containment has fail....". This new evidence adds weight to the conclusion that containment is a myth.

The latest figures refer only to the year 2000. The current problem is likely to be worse, due not least to the rapid increase in the use of HFCs in Mobile Air Conditioning and the consistent buoyancy of the UK new car market. In 1997, only 9% of new cars sold in Europe had MAC: by 2003 it was fitted in 80% of new cars sold in Germany. In Germany a 31-fold increase between 1995 and 2010 in MAC-related GHG emissions is predicted (see report from German Environment Agency).

As MIPIGGs has pointed out in letters to Elliot Morley and the UK Chief Scientist David King, these HFCs are not replacements for CFCs, but a completely new wave of pollution caused by an entirely new use. This is a u-turn on the old UK claim by Ministers such as Michael Meacher that it only allowed HFCs for the phase out of the Montreal Protocol ozone depleting substances.

As the last MIPIGGs newsletter car manufacturers and companies such as Visteon already have technologies based on CO2 which could avoid the use of HFCs very quickly, if the European Parliament was now to tighten the lax phase out planned under the draft controls recently debated by the EU Council of Ministers.

In addition to leakage during usage, putting HFCs into cars means there will be the costly problem of preventing leakage when vehicles are abandoned or disposed of. At present around 50% of the fridges arriving to be 'recycled' in the UK have lost their refrigerant f-gases completely.

After a stakeholder consultation by the EU in 2003, industry estimates of leak-rates from MAC were corrected upwards by 40% (Proposed F-gas Regulation, p 4 COM (2003) final).

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Measurements of aerial concentrations of HFCs reflect the rapid increase in HFC pollution

This year's German Environment Agency report on f-gases states that without proactive moves to replace them with alternatives, future HFC emissions will "increase enormously" owing their to substitution for CFCs, which is currently only one third complete.

In 2020, fluorinated GHGs are anticipated to have a global annual market volume of up to 500,000 t, Europe accounting for up to 100,000t of this. In Germany HFC emissions and related emissions will have increased between 1995 and 2010 by approximately 270%.

In contrast to the Labour Government's position, the UK opposition Conservative Party recently called for HFCs to be banned. This month at the Tory Party Conference Shadow Environment Minister Tim Yeo, who supported the use of hydrocarbon alternatives for domestic fridges while in office, repeated the proposal, calling it a "practical step".

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Ministers Fail To Promote Alternatives To Curb F-Gas Pollution

On 14 October EU environment ministers agreed rules on limiting emissions and uses of fluorinated greenhouse gases (f-gases) in Luxembourg on Thursday. The deal displeased countries in favour of stricter controls: Denmark and Austria voted against; Sweden, Belgium and Portugal abstained.

The Council was voting on a draft European Parliament and Council Regulation on certain fluorinated greenhouse gases; and a draft European Parliament and Council Directive on emissions from air conditioning systems in motor vehicles, amending Directive 70/156/EEC.

In 2003, the Commission had proposed a draft Regulation to phase out certain applications, but it relied mostly on improved 'containment'. It was to be an "internal market" measure, requiring identical implementation across the EU. This would have prevented Austria and Denmark from pursuing their stricter controls on f-gases. A compromise deal then split the proposal. A draft Directive on mobile air conditioning (MACs) amended existing type approval controls for cars, while a draft Regulation covered stationary applications such as refrigeration. Most of the latter had its legal basis under environment rather than trade rules, so permitting stronger action by any Member State. However as ENDS has pointed out, 'key passages on labelling and placing on the market still rely on the internal market legal base'.

In the October 14 debate, Denmark and Austria voted against, and Belgium, Portugal and Sweden abstained. A qualified majority voted in favour. The UK strongly opposed a lower threshold (with support from Italy, Poland and Spain).

The initial Commission proposal foresaw a quota system to phase out f-gases in MACs by 2013, starting in 2009. Now the Ministers want only to prevent the use of gases with a global warming potential (GWP) over 150 times that of CO2 in new types of car from July 2011, or in any new car from July 2017, with a restriction on leakage from 2007. A 150 threshold will rule out HFC-134a but allows HFC-152a, and was supported by the UK and some in the American f-gas industry . The measure foresees reassessment of the threshold in after four years.

Large scale use of SF6 is banned (magnesium die-casting) from 2008 as are f-gases in mostly minor applications such as vehicle tyres, windows, novelty aerosols, new fire protection systems, fire extinguishers, footwear and self-chilling drink cans. For refrigeration, air conditioning, heat pumps and fire protection systems, operators require leakage inspections and recovery of the gases.

Greenpeace called it a "lowest denominator" agreement and noted that it failed to control domestic refrigeration. F-gas industry welcomed the proposal.

EU environment commissioner Margot Wallström said the measure was the "most realistic outcome from a difficult situation".

Greens in the European Parliament called the deal 'a step backwards" warning that member states would be required to repeal rules requiring the adoption of alternatives to f-gases. Greenpeace called the compromise "a missed opportunity to induce a global shift in the market".

The next steps are Finalisation of Common Position (formal adoption), which may be expected in early 2005; transfer of the Common Position to the European Parliament; the start of a Second Reading (which has a three month time limit), followed by a return to Council for a second Reading (a three month time limit), at the earliest by September 2005.

Any European Parliament amendments can be accepted by Council, with adoption of legislation, or, the Council does not approve all amendments, leading to referral to a Third Reading /Conciliation process. This usually takes 6 - 8 weeks. Then comes formal adoption by Council of Ministers and European Parliament, with Entry into Force agreed by Ministers, 12 months after publication in the Official Journal.

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Commission Starts Legal Action on F Gases Against Austria, Denmark

In line with industry lobbies, the European Commission launched legal infringement proceedings against Austria and Denmark, claiming that their national legislation phasing out f-gases in some applications is too restrictive, in October. A 'letter of formal notice' was sent to both countries under article 28 of the EU treaty on the free movement of goods. The two nations now have two months to respond.

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Will The Euro-Parliament Act ?

The outcome of the EU's controversial draft f-gas directive now again rests with the European Parliament. As it is a new Parliament MEPs can actually start the process again or (perhaps more likely) push for stronger restrictions within the Article 95 (Environment) element. As to UK parties, the Tories would have to vote a different way (in line with their leader's recent commitment to ban HFCs). UK LibDems were last time led by Chris Davies whose constituency is close to Ineos at Runcorn, and adopted a pro f-gas policy, despite the 'green' aspirations of that party in the UK.

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UK Government Re-iterates Vague Advice To Itself On Avoiding HFCs

Two days after announcing a massive increase in estimated HFC emissions, UK's Environment Minister Elliot Morley issued what he called 'new, stricter green purchasing and estate management targets for government departments'. (DEFRA press release Oct 6 2004 'New Buy Green Targets For Govt Procurement and Managers'), including on HFCs.

All central Government departments and their Executive Agencies in England are now obliged to:

* draw up, by 1 December 2005, an environmental purchasing policy and properly integrate that with departmental procurement activities, and set up mechanisms for measuring and reporting on progress.

* work with suppliers to find sustainable solutions to the provision of goods, works and services, helping them to implement environmental supply chain management programmes where appropriate.

* include 'environmental consideration' clauses into all contracts for goods, works and services (including PPPs and PFIs).

* incorporate sustainable development considerations into all new build and major refurbishment construction projects (where design commences on or after 1 December 2005)

* plan to replace or modify ozone-depleting fixed refrigeration, air-conditioning and fire protection equipment as it reaches the end of its life and ensure hydro fluorocarbons (HFCs) and other greenhouse gases are not used where safe, cost-effective and feasible alternatives are available.

However while the detailed targets include limits for water use per person, and new sustainable timber purchasing protocols, advice on food and a voluntary agreement on nonylphenols for example, there are no further details on when and how to avoid HFCs, or to judge which alternatives to use. 'Safe, cost-effective and feasible' go undefined.

The additional document 'Green Public Private Partnerships' for example makes no reference to HFCs. Under 'quick wins' the government gives itself guidance on energy saving, recycled content, carbon emissions, energy consumption in use, volatile organic compounds, organic ingredients and biodegradability but says nothing about f-gases, even though almost all the top domestic refrigerators for energy efficiency in Europe are non-HFC.

MIPIGGs and NGOs will therefore be sceptical that this new announcement will have any practical effect. UK officials frequently order huge new HFC systems because of conservatism, custom and practice and the influence of middle-men who are connected to the f-gas industry.

(full texts at http://www.sustainable-development.gov.uk/sdig/improving/index.htm)

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ENDS: 'Row heats up over HFC abatement under CDM'

ENDS reports: 'The first approved methodology for projects under the Kyoto Protocol's Clean Development Mechanism has been put on hold, in a test case with important implications for the environmental credibility of the CDM and for the supply of low-cost CDM credits.

The row concerns the abatement of HFC-23, a potent greenhouse gas released as a byproduct from the manufacture of HCFC-22. HFC-23 has a global warming potential 11,700 times greater than carbon dioxide.

Last year, the CDM Executive Board approved a methodology developed by chemicals firm Ineos Fluor (ENDS Report 344, p 33 www.endrepports.com). Ineos has put forward two projects in South Korea and India which are expected to deliver annual savings of around 4.5mtCO2e (million tonnes of CO2 equivalent).

Ineos' two projects were expected to be registered by the Board by the end of this year, making them the first fully-fledged CDM projects. However, in late September the Executive Board announced a three-week consultation to review the methodology which determines the baseline - and hence the number of credits - which such projects can generate.

The move followed complaints by rival developer DuPont that Ineos' baseline assumptions may significantly overstate the reduction in HFC-23 emissions (ENDS Report 354, p 6)

The Board also received complaints from Switzerland that the potentially substantial revenue from the CDM could encourage the production of HCFC-22. This is also a potent greenhouse gas - albeit not one regulated under the Kyoto Protocol - and is due to be phased out under the Montreal Protocol on ozone-depleting substances.

...A recent report by the OECD found that HFC-23 abatement has the "potential to generate very large amounts of credits, at very low prices". Environmental groups have expressed concerns that the technology is undermining the drive to develop green energy projects under the CDM. ENDS Report 357, October 2004, p 12

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Daikin Apologises For HFCs

In Australia the manufacturer Daikin has apologised for making misleading claims that HFCs are environmentally friendly. Daikin has agreed to stop making such claims. This from http://www.daikin.com.au/home/pages/common/show-story.cfm?story_id=629

"Important Information about Environmental Claims Made by Daikin"

Daikin recently gave a court enforceable undertaking to the Australian Competition and Consumer Commission (ACCC) in relation to Daikin engaging in potentially misleading conduct.

In the period from October 2000 to August 2003, Daikin made a number of representations in certain sales brochures concerning the environmental benefits of certain of its air conditioning units containing the hydrofluorocarbon refrigerants HFC-407C and HFC-134a (the Products), and on its website located at URL: "www.daikin.com.au".

The undertaking follows the ACCC's investigation in relation to Daikin having made, in its promotional material, representations to the effect that:

* Some of Daikin's air conditioning units containing the above hydrofluorocarbon refrigerants are environmentally friendly;

* The use by consumers of certain Daikin air conditioning units containing the above hydrofluorocarbon refrigerants will not contribute to global warming

The ACCC has taken the view that Daikin may have contravened the Trade Practices Act 1974 (the Act), and in particular, that Daikin may have:

* Engaged in misleading or deceptive conduct in breach of section 52 of the Act; refrigerants are environmentally friendly;

* Represented that its Products have performance characteristics they do not have in breach of section 53(c) of the Act; and

* Misled the public as to the nature and/or characteristics of the Products in breach of section 55 of the Act.

As part of the undertaking given to the ACCC, Daikin wishes to draw to your attention that the hydrofluorocarbon refrigerants HFC-407C and HFC-134a are greenhouses gases, which will contribute to global warming if released into the atmosphere. As such they will not benefit the environment.

As part of the undertaking, Daikin has also agreed to refrain from making similar representations concerning its products in the future and to strengthen its trade practices compliance program.

If you have any queries about this letter or about a Daikin product you have purchased, please call Daikin on 1300 362 478.

Daikin apologises to its customers for any misunderstanding caused by these representations which were made in sales literature produced in Japan for the global market.

Yours sincerely,
Daikin Australia Pty Limited
R.Woodhouse
Managing Director"

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10 Things You Can Do About HFCs

A new briefing for consumers and others is available at the website www.mipiggs.org. It lists ten main actions that can be taken to avoid causing climate change through use of HFCs, and gives the contact details of suppliers of alternative products. Please contact us if you have suggestions for future inclusion of products or services.

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For any enquires contact: secretary@mipiggs.org