New entrants are under pressure to use their quota in the year that they received it, based on a ‘use-it-or-lose-it’ principle. Other challenges include companies not having registered the substances under REACH, not having enough quota to clear product in bulk containers (15 – 18 metric tonnes); and not having the health, safety and environment (HS&E) permits and/or capability to handle, store or deal with refrigerants.
The process for exercising quota can be costly, logistically difficult and an administratively burden, according to Honeywell. Since 2015, EU F-Gas regulations set limits for placing HFC refrigerants on the EU market and quota is required for producers and importers. From January of this year, HFC pre-charged equipment must also be covered under the quota system.