101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 122 Environment: Fluorinated gases (F-Gases) and ozone depleting substances (ODS), Purpose This notice sets out how the UK would continue to regulate the trade and use of fluorinated gases (F gases) and Ozone Depleting Substances (ODS) if the UK leaves the EU in March 2019 without a deal. These gases are used as refrigerants, feedstocks for the manufacture of other chemicals, in medical inhalers, fire extinguishers and in a range of other applications. Before 29 March 2019 The EU Ozone Depleting Substances Regulation (1005/2009) restricts the use of chemicals which damage the ozone layer. It implements the Montreal Protocol, an international treaty that aims to phase out Ozone Depleting Substances (ODS) and restrict use to very specific circumstances. Under the Regulation, the European Commission allocates quotas to companies allowing them to place limited quantities of ODS on the market for certain permitted activities. It also bans certain products containing ODS and requires companies to control leakages, report on their usage and apply for a licence to import or export ODS. The EU Fluorinated Greenhouse Gases Regulation (517/2014) is phasing down the use of the main group of fluorinated gases (F gas), known as hydrofluorocarbons (HFCs), to help address climate change. It implements international obligations under the Montreal Protocol to phase down HFCs globally by 2036. The EU F Gas Regulation goes further than the Montreal Protocol, requiring a faster rate of phasedown and extending controls to a larger number of F gases. The European Commission allocates quota to businesses which allows them to place certain quantities of HFCs on the EU market each year. Under the Regulation, this quota will be reduced every few years until a 79% cut against 2009-12 levels is achieved by 2030. To receive an HFC quota, businesses must have an office or Only Representative - an organisation which acts as a legal representative for another organisation - within the EU. The Regulation also bans certain uses, requires leakage checks and requires handlers of F gas to be trained and certified. F gas training certificates are mutually recognised by EU countries, meaning someone certified in one country can work in another. The requirements of the ODS and F Gas Regulations are enforced across the whole of the UK. Most enforcement is devolved. In England most enforcement activity is undertaken by the Environment Agency, while the Scottish Environment Protection Agency enforce the Regulations in Scotland. In Wales enforcement is undertaken by the Natural Resources Body for Wales, Welsh local authorities, port health authority or Welsh Ministers, and in Northern Ireland by the Department of Agriculture and Rural Affairs (DAERA) and District Councils of Northern Ireland. For offshore hydrocarbon installations, enforcement is undertaken by BEIS’s Offshore Petroleum Regulator for Environment and Decommissioning (OPRED). Controls on imports and exports are enforced across the UK by HMRC and Border Force. The greenhouse gas emissions savings delivered by the F Gas Regulations are counted as a contribution to the savings required to meet UK carbon budgets under the Climate Change Act. After March 2019 if there’s no deal In the event of a ‘no deal’, the UK would maintain the same high standards. The majority of the requirements in the EU ODS and F Gas Regulations will continue to apply in the same way after the UK leaves the EU, including in the unlikely event of no deal. This will ensure the UK can continue to phase down the use of F gases and maintain controls on ODS to meet climate change goals and fulfil legal obligations under the Montreal Protocol. The current quota systems for controlling the quantities of ODS and HFCs operate at EU level, are applied to companies not countries, and are administered by the European Commission. In a ‘no deal’ scenario, the UK would set up its own quota systems. The current EU-wide HFC quota which companies receive would be split into two parts: one quota for placing on the UK market issued by the UK Government and another for placing on the EU market, issued by the EU Commission. New UK IT systems would be established and administered by the Environment Agency (EA). The reporting requirements upon businesses would not change, only the IT systems they use. Businesses that produce, import, or export HFCs or ODS or products and equipment pre-charged with HFCs or ODS would need to apply for UK quota to place them on the UK market. Businesses would also use the new UK systems to report on their use of ODS and F-gases.