Climate Change

Traders smuggle potent greenhouse gas, primarily used for cooling, to Europe: EIA investigation

Traders have been illegally sourcing hydrofluorocarbon, primarily from China and Türkiye, and routing it through Bulgaria into the rest of the European Union

 
By Rohini Krishnamurthy
Published: Tuesday 09 April 2024
HFCs, which are commonly used in refrigeration and air-conditioning, are responsible for 2.3 per cent of current global GHG emissions. iStock photo for representation

A greenhouse gas (GHG) commonly used for cooling and refrigeration has been illegally entering European soils despite existing regulations, a new investigation has revealed.

Traders have been illegally sourcing hydrofluorocarbon (HFC), primarily from China and Türkiye, and routing it through Bulgaria into Greece, Germany, France, Italy, Portugal and Spain, stated the Environmental Investigation Agency’s report More Chilling Than Ever.

HFCs, which are commonly used in refrigeration and air-conditioning, are responsible for 2.3 per cent of current global GHG emissions.

“Illegal HFC trade not only worsens climate change but has also been linked to tax evasion and organised crime,” reads the report.

Driven by high profits and weak law enforcement, organised criminals are closely associated with this illicit trade.

“Globally, HFCs are being phased down under the Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer. As countries around the world begin to reduce HFC consumption, they can learn important lessons from Europe’s experience of illegal trade,” EIA Senior Climate Campaigner Fin Walravens said in a statement.


Read Countries adopt Kigali amendment to phase down HFCs


In 2022, EIA initiated an undercover investigation on the illegal trade. After speaking with traders, the team found that HFCs are being imported into the EU and are readily available on the market. They were also openly using websites such as Facebook Marketplace, eBay and OLX to advertise and reach new clients.

Traders have also been adopting new strategies to smuggle HFCs. They escape detection by avoiding banned disposable cylinders and disguising HFCs as less regulated alternatives like hydrofluoroolefin (HFO) refrigerant.

This expose follows a 2021 EIA investigation, which found that Romania was the key entry point for illegal trade. It documented how networks of Romanian traders were importing illegal HFCs from Ukraine and Türkiye to smuggle them throughout the EU. The report also highlighted the wide abuse of regulations in facilitating illegal HFC trade.

In the same year, illegally traded HFCs in the EU resulted in the carbon-dioxide equivalency of 30 million tonnes of emissions, EIA estimated. This is comparable to the annual emissions of driving 6.5 million petrol-driven cars. This illegal trade could also slow the adoption of greener alternatives.

Flouting regulations

In 2016, the world adopted The Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer in response to the threat posed by HFCs to the global climate. The gradual phase-down of HFCs under the Kigali Amendment will avoid up to half a degree of warming by the end of the century.

Europe was the first to take concrete steps. Under its F-gas under Regulation, HFC producers and importers are required to hold a quota to be able to place HFCs since 2015.


Read Negotiations on Montreal protocol one step closer to phasing out HFCs


Over time, the total annual quota available has reduced. In response to this, the synthetic gas has become scarce, causing a spike in prices. If HFCs are placed on the market sans quota, they are considered illegal.

In 2024, EU revised its rules. The existing quota levels have been significantly reduced, further limiting imports and production of HFCs year-on-year. The bloc aims to eliminate HFC by 2050.

The new rules could raises the incentive for more illegal smuggling of HFCs. “The EU has recently revised its F-gas Regulation, offering enforcement agencies additional tools to combat illegal trade — but these will only work if they are implemented quickly and effectively,” Walravens said.

As per India’s commitment to the Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer for phase down of HFC, the country will complete its phase down of HFCs in four steps from 2032 onwards, with cumulative reduction of 10 per cent in 2032, 20 per cent in 2037, 30 per cent in 2042 and 85 per cent in 2047.

At COP28 in Dubai last year, 66 countries endorsed the Global Cooling Pledge to work together to reduce cooling-related emissions across all sectors by at least 68 per cent globally relative to 2022 levels by 2050, consistent with limiting global average temperature rise to 1.5°C. They also committed action to reduce HFC consumption.

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