As a crucial link in the refrigeration, air conditioning, and heat pump industry chain, the choice of refrigerant has never been so closely linked to a company's sustainable development and global environmental responsibility.
In 2016, the Kigali Amendment, under the framework of the Montreal Protocol, was formally established, marking a new stage in global collaborative action, extending from protecting the ozone layer to addressing climate change. Its core objective is very clear: to gradually reduce the production and consumption of potent greenhouse gases-hydrofluorocarbons (HFCs)-globally.
For every partner in the industry, this is not merely an international regulation, but a core strategic guideline driving technological innovation, market transformation, and future competitiveness. As your reliable refrigerant supplier, we have a responsibility to work with you to clarify the key aspects of this transformation.
Background to the Kigali Amendments: From Ozone Layer Protection to Dual Environmental Governance
The core of the 1987 Montreal Protocol was the phase-out of ozone-depleting substances (ODS) such as CFCs and HCFCs. Significant progress has been made in global ODS phase-out, with the ozone hole continuously shrinking and greenhouse gas emissions indirectly reduced.
However, new challenges have emerged in ODS replacement: while HFCs(Hydrofluorocarbons) have no ozone depletion potential (ODP), they are high global warming potential (GWP) greenhouse gases, and their increasing emissions have become a major contributor to global warming. Uncontrolled emissions would negate the gains made in ozone layer protection.
In October 2016, the 28th Conference of the Parties to the Montreal Protocol adopted this amendment in Kigali, Rwanda, formally incorporating HFCs into the regulatory framework, aiming to reduce their production and consumption in stages and achieve dual environmental goals.
The amendment came into effect on January 1, 2019, and has since been adopted by over 190 parties. China formally accepted it on September 15, 2021, marking a new stage in the domestic refrigerant industry's HFCs regulation and low-carbon transformation.
Key elements of the Kigali Amendments: Scope of control, compliance framework, and key requirements.
The Kigali Amendment is a supplement and extension to the Montreal Protocol. Its core is to continue the framework of "phased elimination and differentiated compliance" and to formulate specific control rules for HFCs. The core content is divided into four points.
(I) Clarifying the Scope of Controlled Substances: Focusing on HFCs
The amendment clarifies the controlled categories of HFCs (such as HFC-32 and HFC-125), which are widely used in air conditioning, cold chain, and fire protection, and are currently the mainstream refrigerants in the market.
Unlike ODS control, it adopts a "total quantity control + GWP weighted accounting" approach, calculating total production and consumption in carbon dioxide equivalents, balancing the scientific basis of environmental impact with the flexibility of substitution. The scope of control will be adjusted in a timely manner as technology develops.
(2) Differentiated Compliance Framework: Four Groups of Parties, Phased Reductions
Based on the principle of "common but differentiated responsibilities," the Parties are divided into four groups, setting differentiated reduction baselines, freeze periods, and timetables to balance fairness and feasibility:
1. Group 1 (Non-A5, Starting Earlier): Developed Countries Leading the Way
Including the EU, the US, Japan, etc., using the average consumption level from 2011-2013 as the baseline, gradually reducing consumption starting in 2019, and reaching 15% of the baseline by 2036 and beyond, leading the substitution process.
2. Group 2 (Non-A5, Starting Later): Transitional Countries
Including Russia, etc., using the 2011-2013 baseline as the baseline, gradually reducing consumption starting in 2020, and reaching the same targets as Group 1 by 2036 and beyond.
3. Group 3 (A5 Group 1): Major Developing Countries
Including China, South Korea, etc., with 2020-2022 as the baseline, production and consumption will be frozen in 2024, gradually reduced from 2029, and reduced to 20% of the baseline by 2045.
4. Group 4 (A5 Group 2): Special Developing Countries
Including India, Saudi Arabia, etc., with 2020-2022 as the baseline, production and consumption will be frozen in 2028, gradually reduced from 2032, and reduced to 15% of the baseline by 2047, balancing development and compliance obligations.
(III) Core Compliance Obligations: Comprehensive Control of Production, Consumption, and Trade
The amendment imposes full life-cycle compliance requirements on contracting parties to ensure comprehensive control:
1. Production and Consumption Control: Strict control over total output, prohibiting production and consumption exceeding quotas and new high-GWP HFCs production capacity (except for special applications). China has explicitly stated that from August 2024, no new or expanded HFCs production facilities for 13 controlled applications may be built.
2. Trade Control: Establishment of an import and export licensing system, prohibiting exports to non-contracting parties. Trade between contracting parties must comply with quota requirements. China has implemented relevant management since November 2021.
3. Recycling and Disposal: Establishment of a recycling, reuse, and destruction system to reduce leakage. China stipulates that from September 2021, byproduct HFC-23 must not be directly emitted and must be destroyed and disposed of.
4. Technical Cooperation and Information Sharing: Developed countries provide technical and financial support to developing countries. Contracting parties regularly submit compliance data and accept global monitoring.
(iv) Special Exemption Clauses: Balancing Essential Needs and Technological Feasibility
To avoid impacting key sectors, the amendment includes temporary exemptions covering essential uses with no viable alternatives, such as medical and aerospace applications, emergency uses like firefighting, and applications for performance extensions from economically underdeveloped countries.
These exemptions are not permanent and will be gradually reduced in scope and usage as alternative technologies develop.
Global Impact of the Kigali Amendment: Reshaping the Refrigerant Industry Landscape
The amendment has a disruptive impact on the global refrigerant industry, driving its green transformation, primarily in three aspects:
(I) Industry Restructuring: Low-GWP Refrigerants Become the Market Mainstream
By 2050, global HFC usage will be reduced by 85%, potentially reducing global temperature rise by 0.5°C. HFOs, natural refrigerants (CO₂, ammonia, etc.), and mixed refrigerants are becoming the core alternatives, while high-GWP HFC capacity is being reduced, leading to increased industry concentration.
(II) Rising Industry Costs: Compliance and R&D Become Core Investments for Enterprises
Compliance requires companies to upgrade equipment, eliminate outdated capacity, and invest in low-GWP product R&D. Core patent barriers increase pressure on companies in developing countries. China currently has over 50 HFC production enterprises with a capacity exceeding 1.6 million tons. The transformation will affect nearly 30,000 jobs. In the long term, compliance investment will translate into core competitiveness.
(III) Trade Landscape Adjustment: Compliance Qualifications Become Core Barriers to International Trade
The EU, the US, and other countries have refined their domestic controls, imposing stringent GWP limits and compliance requirements on imported refrigerants. China exports approximately 400,000 tons of HFCs annually, covering 190 countries. Compliance directly determines international market access, giving companies with low GWP capacity and compliance qualifications a significant advantage.
Our Role: More Than Just a Supplier, Your Transformation Partner
Faced with this irreversible industry trend, our company Xiamen Juda Chemical has already taken proactive steps. We position ourselves not only as a refrigerant provider, but also as your strategic partner in achieving a green future:
Forward-Looking Product Portfolio: We continuously expand and optimize our low-GWP, high-performance refrigerant product line, providing you with diverse options that comply with current and future regulations.
Professional Technical Support: Our technical team is ready to provide you with comprehensive support, from selection guidance and application consulting to safety training, assisting you in a smooth technological transition.
Stable Supply Chain Guarantee: Through strategic procurement and compliance management, we are committed to providing you with a stable and reliable product supply during this period of change, mitigating the risks of market fluctuations.
Information Sharing Platform: We will continuously monitor and interpret the latest global and Chinese policies, technical standards, and market dynamics. Through such sharing, we will make decisions together with you and gain insights for the future.
To learn more about low GWP refrigerant solutions, or if you require technical consultation for your specific business, please feel free to contact our professional team.
