Mercedes-Benz has announced plans to equip its vehicles with C02 air conditioning systems. The new system developed by the Stuttgart-based automobile manufacturer will exceed the European Union's (EU) Mobile Air Conditioning (MAC) Directive which was first introduced on January 1, 2013. Under the Directive car makers had to replace R134a with a refrigerant that has a Global Warming Potential (GWP) under 150. To comply with MAC Directive the motor vehicle industry replaced its R134a air conditioning systems with R1234yf. However, Mercedes-Benz refused to use the new refrigerant claiming it was a fire risk. This was the main driver behind the company's decision to develop its very own C02 system. Finally, the three year battle has come to an end with Mercedes-Benz agreeing to use R1234yf until it can begin introducing C02 air conditioning systems across its fleet in late 2016/early 2017. But the car maker will not use R1234yf without protection. While using R1234yf Mercedes-Benz will install “specific protective devices” in its vehicles in the event of a head-on collision, using an argon gas suppressant to avoid the refrigerant mixing with hot engine components. The new C02 air conditioning systems will be installed in its S and E Class vehicles from 2017. In a statement the company said the use of CO2 as a refrigerant did necessitate the redesign of crucial components. CO2 air conditioning systems operate at a pressure of more than 100 bar – 10 times higher than today's systems. This means that all components including the hoses and seals had to be redesigned. Mercedes-Benz has drafted corresponding standards together with all German automobile manufacturers and numerous suppliers in the automotive Standards committee of the German Association of the Automotive Industry(VDA). The publicly accessible DIN specification documents allows other companies to jump start their own development activities. Despite stringent emission regulations in the EU, new research forecasts further growth in the airconditioning market due to increased demand for vehicles. In 2014, German auto industry exports witnessed a seven per cent rise over 2013, according to MarketsandMarkets. The research firm said the global airconditioning market is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.69 per cent from 2015 to 2020 to reach $US24.28 billion by 2020. The report identified the Asia-Pacific as the biggest market with the Chinese automotive airconditioning segment leading the region as the largest producer and consumer of automobiles across the globe. Recent infrastructure developments and industrialization activities in India have opened up new avenues, opportunities, and markets for OEMs while demand for passenger cars is growing in India due to the increase in per capita income.