Quota allocation and authorisations

Update February 2017:

Allocation of quota: Quotas are needed for the import and production of bulk HFCs.

Quotas from the reserve are allocated annually based on a declaration of (additional) anticipated needs. The dates of the declaration period for 2018 quota have been published in the Official Journal. Companies wishing to apply for import and production of bulk HFCs from the reserve should make a declaration in the HFC Registry in the period 1 April - 31 May 2017, 13:00 CET. A quick guide Search for available translations of the preceding link  illustrating the steps for submitting a quota declaration is available

Preliminary quotas for 2017 have been allocated to companies that made a declaration in the period 1 April – 31 May 2016 ("New Entrants"), and to incumbent companies (see definition below) based on their reference values. Companies concerned are invited to go to the HFC Registry to consult their quotas. Some companies received penalties due to an apparent exceedance of their quotas in 2015.

Authorisations of quota: Authorisations are needed for the import of ALL precharged HFC refrigeration, AC and heatpump equipment from 1 January 2017.

Authorisations must be agreed between a quota holder and an importer of precharged equipment AND must be entered Search for available translations of the preceding link online in the HFC Registry accessed via the F-gas Portal. The system also allows for delegating authorisations by an authorisation manager, e.g. an equipment manufacturer, to help importers comply with their obligations. Please see details in our guidance for equipment importers: Guidance documentSearch for available translations of the preceding link

Registration: Registration is mandatory for companies to receive a quota. It is also compulsory for 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).

All companies who will have to report on F-gas related activities according to Art. 19, such as imports of gases or precharged equipment, EU production and export of gases, stocks, destruction and others should similarly register to enable access to the reporting forms.

Transfer of quota: The online mechanism for transferring bulk quota from one company to another is available in the HFC Registry (Guidance documentSearch for available translations of the preceding link), accessed via the F-gas Portal.

Background: Regulation (EU) No 517/2014 includes a phase-down of hydrofluorocarbons (HFCs) under which the placing on the EU market of HFCs by each undertaking is subject to quantitative limits. Since 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 manufacturers and importers of gases contained in products and equipment. The latter undertakings must assure compliance with the quota system in other ways, through a declaration of conformity and, for importers, the use of authorisations (Guidance document Search for available translations of the preceding link).

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.

Incumbents have been allocated Reference Values by Commission Implementing Decision (2014/774/EU) of 31/10/2014, which lists the names of the companies concerned. The reference values themselves have been communicated by letter to each Incumbent. The quota of Incumbents for 2016 will be 89% of their reference value multiplied by the phase-down factor (93% for 2016). 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 2016. Incumbents can also see their reference values and allocated quotas in the HFC Registry directly.

New reference values for the period 2018-2020 will be calculated and adopted by the Commission by 31 October 2017 based on quantities legally placed on the market by all companies (Incumbents and New Entrants) from 2015, based on available data. For the allocation of quotas from the reserve for 2018 and every year thereafter, Incumbents declaring additional anticipated quantities will be treated in the same way as New Entrants.

(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 2017 quota is closed and reopens 1 April - 31 May 2017, 13:00 CET, for 2018 quota.

The submission of the declaration of intention to place HFCs on the market by itself does not give any right to place HFCs on the market in 2017 or 2018.

Quota Penalties

Companies that exceed their quota are allocated a reduced quota in the allocation period(s) following detection. A penalty of 200% of the exceedance amount is applied. Furthermore, the responsible Member State will impose further penalties in cases of infringements of the Regulation according to national law.

Where to get more information?

For questions on quota allocation and the HFC registry, please email Questo indirizzo email è protetto dagli spambots. E' necessario abilitare JavaScript per vederlo.

For other enforcement issues, the EU Member States are responsible for implementing Regulation (EU) No 517/2014. Please contact the relevant person Search for available translations of the preceding link in your Member State..

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

Reporting obligations

The tool for reporting on Fgas-related activities is now accessible via the Fgas Portal. It usually opens early February to allow timely reporting before the legal deadline of 31 March each year.

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 (but no obligation to report if these gases were bought on the EU market or imported as bulk ("released for free circulation") previous to being put in the equipment)
- 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

What needs to be reported?

The reporting requirements depend on the role of the reporting company in the market. A new reporting tool in line with the new F-gas regulation specifies all 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-Gas Portal through the yellow "Reporting" button in the top right corner. Reporting for 2016 activities will begin in early February.

https://ec.europa.eu/clima/policies/f-gas/reporting_en