India to Halt New Hydrofluorocarbon Production Projects Post-2027

Original: No environmental clearance for HFC production projects starting 2028: Environment ministry

The Economic Times•Apr 7, 20262 min

In a Nutshell

The Indian Ministry of Environment has mandated that no new hydrofluorocarbon (HFC) production projects will be approved after December 31, 2027, in compliance with the Kigali Amendment to the Montreal Protocol. This decision aims to regulate and reduce HFC production to meet international commitments, with a phased reduction plan set to begin in 2023.

Key Points

01No new HFC production projects will be approved after December 31, 2027.
02India ratified the Kigali Amendment in September 2021, committing to reduce HFC consumption.
03A phased reduction plan requires HFC production to decrease by 10% starting in 2023.
04The baseline for HFC production will be established from the average production in 2024-2026.
05Existing projects with environmental clearance must also comply with the 2027 freeze date.

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Full Summary

The Indian Ministry of Environment has issued a directive prohibiting the approval of any new or additional hydrofluorocarbon (HFC) production projects after December 31, 2027. This decision aligns with India's commitment under the Kigali Amendment to the Montreal Protocol, ratified in September 2021, which mandates a freeze on HFC consumption by January 1, 2028. The baseline for HFC production will be determined based on the average production and consumption from 2024 to 2026, along with a portion of historical HCFC-22 production. To comply with these international obligations, the ministry has outlined a phased reduction plan, requiring a 10% reduction in HFC production starting in 2023, escalating to 85% by 2047. Existing projects that have received environmental clearance must adhere to this freeze, and any new applications must include a commitment to commence operations by the end of 2027.

Key Figures

10%

Initial reduction target for HFC production starting in 2023

85%

Target reduction in HFC production by 2047

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Why It Matters

This policy will significantly impact the refrigeration and air-conditioning sectors in India, potentially leading to increased costs for consumers as companies adjust to new regulations.

Who is affected

Manufacturers in the refrigeration and air-conditioning sectors, consumers of these products.

What to know

Companies should prepare for compliance with the new regulations and consider alternative technologies or refrigerants.

FAQ

The Kigali Amendment is an international treaty aimed at phasing down the production and consumption of hydrofluorocarbons (HFCs), which are potent greenhouse gases.

Existing facilities must comply with the freeze on new production capacity beyond December 31, 2027, and cannot commence production if granted clearance after this date.

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