The Kigali Amendment is officially in force across the globe but there are still a long list of signatories that haven't stepped up and officially ratified.
Out of the 197 Parties to the Montreal Protocol that voted for a global phasedown of HFCs in 2016, only 65 countries have officially ratified as of January 1, 2019.
Those that haven't ratified includes some of the biggest countries in the world, namely the United States and China.
This agreement is expected to reduce global warming up to 0.4°C by 2100, which will make a significant contribution to the Paris Agreement objective to limit the temperature rise well below 2°C.
There are some countries serious about making a difference. For example, France is providing plenty of tax incentives to ensure companies seek out alternatives and make the transition away from HFCs.
France’s HFC tax, officially adopted on December 30, will enter into force in 2021.
Companies can already get a 40% income tax discount to assist in the transition.
According to the 2019 Finance Bill, France will support the adoption of HFC alternatives from January 1, 2019 until December 31, 2022 by making the 40% tax discount applicable for the next four years.
France isn't the only country in the European Union to introduce a tax. For example, Spain introduced a tax of its own in 2014.
However, last year the the Spanish refrigeration association known as AEFYT lodged a complaint with the European Commission claiming that the tax on HFCs infringes free market principles.
AEFYT’s complaint claims the tax, known by the acronym IGFEI, violates European Union legislation. The complaint alleges that the IGFEI generates distortions in competition between Spanish companies and those of the other EU member countries.
Meanwhile, Research and Markets has released its latest report on the next generation refrigerant market which is expected to grow at a CAGR of 8.11% and 10.52% between 2018 and 2023 in terms of value and volume, respectively.
According to Research and Markets, the market will reach $US4.72 billion by 2023.
Next generation refrigerants include Ammonia (R-717), R-1234yf, R-1234ze, among others which have a minimal to zero global warming impact (GWP) and ozone depletion potential (ODP).
Natural refrigerants are naturally occurring and non-synthetic substances that can be used as cooling agents in refrigerators and air-conditioners. These substances include hydrocarbons (propane, butane, and cyclopentane), CO2, ammonia.
The refrigeration segment accounts for the largest market share in the global next generation refrigerant market. Natural refrigerants are widely used in industrial and commercial refrigeration.
In Europe, ammonia has been widely adopted for industrial refrigeration in the U.K. and Germany owing to the usage restrictions and taxation on greenhouse gases in these countries.
In terms of volume, Europe dominated the global next generation refrigerant market in 2017.