To meet the surging
demand of refrigerants while fit to the guideline of the Kingali
Amendment, China's producers have to speed up the R&D in new safe and
greener refrigerants. The largest producing and consuming country of these
chemicals has a tough time to stick to the goals.
The Kingali Amendment
is part of the Montreal Protocol, which guides the international community to
fight against climate change. The new amendment will come into effect on
January 1, 2019, since with the ratification of Sweden and Trinidad and Tobago,
21 parties, including China, have ratified the Montreal Protocol so far. 20
parties were the minimum to get the amendment into effect.
The
Kigali Amendment was agreed on back in October 2016 by the 197 Parties to the
Montreal Protocol, in order to reduce global production as well as consumption
of harmful HFCs.
According
to the deal in the amendment, the world economies are divided into three
categories, each with a personalized target for the phasedown date. The richest
and most developed countries, like the USA or European states, are urged to
reduce the production and consumption of HFCs from 2019 ongoing. The other
groups are mainly divided by the temperature situation and the resulting need
for effective refrigerants like HFCs. Hence, developing countries with lower
temperatures, like China, and Brazil, will cut the use of HFCs by 2024. Desert
states and other "hot' countries like Bahrain, India, Iran, Iraq, Saudi Arabia,
and the United Arab Emirates will start their consumption quit by 2028.
Furthermore,
developing countries also have the chance to receive funding from the
Multilateral Fund to facilitate compliance with the Protocol's provisions.
With
the Kigali Amendment, manufacturers of refrigerants are now urged to start
researching and producing alternative substitutes that are less harmful to the
climate. This has a significant effect on China, which is the largest producer
and consumer of HFCs worldwide with a technology still lacking behind
international competition.
HFC situation in China
At
present, China is the largest country in consumption as well as production and
export of HCFCs and HFCs. Hence, the elimination of these chemicals is a
mammoth task for the country, which manufacturers are still lacking behind
international competitors when it comes to the research and development of new
and safe refrigerants.
The
main fluorine refrigerants in China are HCFC-22, HFC-134a, HFC-32, HFC-125, and
HFC-410a. Of them, the first one is by far the major refrigerant used, according
to market intelligence firm CCM.
The
middle kingdom has already eliminated CFCs back in the year 2007, which was
even three years ahead of the deadline stated in the Montreal Protocol. It
stays to be expected if the country can show the same pace and progress in the
elimination of fluorohydrocarbons in the coming years ahead.
The
significant demand growth for automobiles and household appliances, however,
adds pressure on the industry, as more refrigerants as upstream material are
needed. To meet the surging demand but fit to the goals of the
Montreal Protocol and Kingali Amendment, China's producers have to speed up the
R&D in new safety refrigerants.
The effect of the
Amendment on China
CCM
thinks the Kigali Amendment will positively influence China's refrigeration
industry, accelerating the application of safer, greener and more efficient
refrigerants, which is urgently needed.
Improvements
in efficiency would also bring many other advantages, including reduced air
pollution and improved public health in the middle kingdom, whose big cities
are suffering part of the world's worst air pollution. Consumers also would
save money since energy use typically makes up 90% more of the lifecycle
impacts of an air conditioner.
In
China, moving to climate-friendly refrigerants, and boosting the energy
efficiency of cooling technologies could save as much energy as would be
produced by eight Three Gorges hydroelectric dams.
The
latest refrigerants, which represent a considerable alternative to HFCs, now
coming onto the market are hydrofluoro olefin (HFO) refrigerants.
These have the characteristics of low toxicity, zero ozone depletion potential,
low GWP and similar pressures to HFC 134a.
Though
China remains the world's largest contributor to global emissions, Beijing is
adding non-fossil fuel electricity generation capacity at a furious pace.
Combining this with the impressive growth of the largest market for AEVs in the
world, the government shows its commitment to cleaner economy and hence an
improvement of refrigerants, promoted by officials, is likely happening in the
country soon.
The reason for the ban
on HFC
HFCs
are artificial chemicals that are primarily used in air conditioning, refrigeration
and foam insulation. They have become infamous for being powerful greenhouse
gases that can be thousands of times more potent than carbon dioxide in
contributing to climate change and ozone layer destroyers.
Coolants
and fridges were discovered to be very toxic about 100 years ago, causing
severe health complications to humans and the ozone layer. The ozone layer is
the natural shield against the sun's harmful ultraviolet rays, which can cause
severe health risks such as skins cancers. This damage to the ozone layer
prompted governments to moot an environmental agreement to govern the
production and use of harmful substances that damage the ozone.
Their
global warming effect is up to 15,000 times greater than that of carbon
dioxide. The use of HFCs use is the fastest growing source of greenhouse gas
emissions worldwide.
About CCM
CCM
is China's market intelligence form for the industries of agriculture,
chemicals, and food & feed.
If
this information was useful to you, why not have a look at
the newly published report Survey of Fluorohydrocarbon in China. It
gives the whole insights of the HFC market in China and an outlook for the
future development.
For
regular news on China's fluoride market, including market news, company
dynamics, policy changes, and other newsworthy information, CCM publishes a
monthly newsletter, which can be accessed here.