EU F-Gas HFC Quota Reduction Schedule (Full Phase-Out by 2050) and Transition to Alternative Technologies
ENFORCEMENT TIMELINE
In force since March 11, 2024 (the phased HFC quota reduction schedule applies from 2025 through 2050)
Overview
This card focuses on the specific operational practice for the long-term HFC placing-on-market quota reduction schedule under Annex VII of the EU F-Gas Regulation (Regulation (EU) 2024/573), the obligation to reduce HFC production volumes, and the framework supporting the transition to low-GWP and natural refrigerants.
The HFC placing-on-market quota is progressively reduced from a 2015 baseline to zero by 2050 (full phase-out). Reduction steps are set for 2025, 2027, 2030, 2033, 2036, 2039, 2042, 2045, and 2048, with the quota reaching a level 96% below the 2015 baseline by 2036. HFC production is also capped, with production rights reduced to 15% of the average production level for 2011–2013 by 2036. The European Commission is scheduled to conduct a review, before 2040, of the continuing need for HFCs in sectors where they are still used.
Enforcement Timeline
2015: The baseline year for the HFC quota reduction schedule.
March 11, 2024: The EU F-Gas Regulation (Regulation (EU) 2024/573) enters into force.
2025: Quota allocation under the new reduction schedule takes effect.
2036: The HFC quota reaches a level 96% below the 2015 baseline. Production rights (production volume cap) also reach the level of 15% of the 2011–2013 average.
Before 2040: The European Commission is to conduct a review of continuing HFC demand.
2050: The HFC placing-on-market quota reaches zero, achieving full phase-out.
Business Impact
Refrigerant and equipment manufacturers need to develop product and technology roadmaps that progressively reduce reliance on HFCs, with an eye to the long-term quota reduction schedule running through 2050. Given the sharp reduction to a 96%-below-baseline level expected by 2036 in particular, businesses need to plan ahead for a transition to low-GWP refrigerants — natural refrigerants such as CO2, ammonia, and hydrocarbons, or HFOs — well before that point.
Across the supply chain, early adoption of alternative refrigerant technology is important for securing both compliance-cost and market-competitiveness advantages, given the risk of rising procurement costs as HFC quotas become scarcer. For specific sectors where HFC use remains entrenched (such as pharmaceutical aerosols), businesses need to continuously monitor alternative-technology developments in light of the review outcome expected before 2040.