On Wednesday 6th February 2019, REFCOM met with DEFRA to discuss:-... Read more →
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If the UK leaves the EU with no deal, the UK will regulate fluorinated greenhouse gases (F gas) and ozone-depleting substances (ODS) from 30 March 2019.
F gas and ODS are substances used mainly as refrigerants, but also in other products including:
This guide is for businesses and individuals who currently need to follow EU regulations:
This affects you if you:
You can use this guide if you service:
If the UK leaves the EU without a deal, EU F gas and ODS regulations will no longer apply in the UK from 30 March 2019.
New UK regulations will transfer most of the requirements of the EU regulations into UK law.
The UK will continue to:
That means UK F gas quotas will follow the same phase down steps as the EU:
Most of the rules for F gas and ODS will not change. However, the UK will have separate quota systems, and the IT systems UK businesses use to manage quotas and report on use will change.
You’ll still need to comply with EU regulations on products you place on the EU market after exit.
When the UK leaves the EU, it will manage its own quota systems.
If you produce, import or export HFCs (the main class of F gases) or ODS, or products containing HFCs or ODS, you’ll need to apply for a:
If you import or export ODS, including to and from the EU, you’ll need to apply for a UK import or export licence.
Scotland, Wales and Northern Ireland have all decided to remain part of a single, UK-wide system if the UK leaves the EU with no deal on 29 March 2019.
The Environment Agency will administer the systems for the whole of the UK.
The Environment Agency could charge regulated businesses to recover costs of running the quota and reporting systems. It will consult before deciding whether to charge. The consultation will include the level of any charges and the activities to which they would apply.
If the UK leaves the EU without a deal, the UK will leave the EU F gas system from 30 March 2019.
Before 30 March 2019 you should continue to use your EU quota to place HFCs on the UK market.
After 30 March 2019 you’ll need a UK HFC quota if your business places on the UK market HFCs equivalent to 100 tonnes or more of carbon dioxide (CO2 ) per year. This total includes any imports to the UK from the EU.
The Environment Agency will manage a new UK F gas system, including UK HFC quota allocation.
You will need to register on the new UK F gas system to:
If the Environment Agency has your company data, it may register your details for you.
The Environment Agency will publish details of how to use the UK F gas systems in early 2019.
You’ll still need to register on the F gas IT system, but you will not usually need a quota for HFCs if you:
You’re eligible to apply for a UK HFC quota as an incumbent if all of the following apply:
An independent auditor must verify the data you provided to the Environment Agency.
Defra wrote to all incumbent EU quota holders in January 2018 inviting them to provide this data. Email email@example.com if you did not get a letter asking you to report this data, and both of the following apply:
If you put HFCs on the market for the first time in 2017, you may still be classified as a new entrant rather than an incumbent quota holder. This means you’re not automatically eligible for a UK quota and must apply as a new entrant.
The Environment Agency will:
You’ll need to confirm that you want a UK reference value and provide company details.
The Environment Agency will then:
This will be the amount of HFCs that you can place on the UK market in that period.
For 2020 and all following years you’ll get a:
As under the EU system, quota reference values will be re-calculated every 3 years based on HFC quantities placed on the UK market.
As with the EU system, a portion of the total quota allocation for the UK will be allocated to those applying for new or additional quota each year.
You can apply for quota from this reserve to use from 30 March 2019 if you:
You’ll need to apply for UK new entrant quota even if you had new entrant quota for 2018 from the European Commission. You can use your EU new entrant quota to place HFCs on the UK market only until 29 March 2019.
The amount of UK new entrant quota you get may not be the same as the EU quota you had for 2018.
You first need to register on the UK F gas system. The Environment Agency will publish guidance in early 2019 on:
After registering, you’ll use the UK F gas system to apply for a quota. In your application you’ll need to specify the types of HFCs and the quantities you’d like to place on the market.
The Environment Agency will then tell you the amount of UK quota you have been allocated for the period from 30 March to 31 December 2019. You may get less than you applied for if the total amount which applicants request is more than the reserve.
If you want to apply for UK quota again for 2020 and subsequent years, you must do this on the UK F gas system. The Environment Agency will issue a notice each year of the dates when you can apply.
If the Environment Agency approves your application, it will publish the quantity you have been allocated on the UK IT system.
From 2021 and every 3 years after, new entrants will become incumbent quota holders if they:
The Environment Agency will issue new quota holders with a UK reference value which will automatically entitle them to a UK quota in future years.
You’ll be able to use the new UK F gas system to:
The type of data you’ll need to enter will be similar to the EU registry requirements.
The Environment Agency will publish guidance on how to use the UK F gas system to transfer or authorise quota in early 2019.
If you import each year pre-charged equipment containing one or more metric tonnes of HFCs, or a quantity of HFCs equivalent to 100 tonnes or more of CO2, you must have a UK quota. This includes imports from the EU.
You must hold sufficient quota authorisations. If you do not, you must get one of the following:
You must register on the UK F gas system to receive quota authorisations and delegations.
If you want to import to the UK bulk HFCs to pre-charge equipment you’ll need:
If you import F gas to the UK solely for re-export and not for the UK market, you may be able to use the inward processing procedure. This would mean you do not need UK quota.
If you get bulk gas from an EU-based producer or importer, they could authorise you to use their EU quota to export equipment back to the EU. This is because they will not need to use their EU quota to send the gas to you.
Other aspects of the requirements for placing pre-charged equipment on the market will be similar to the EU regulation. These include documenting and verifying quota compliance, and a declaration of conformity.
You can apply to exchange your unused EU authorisations, including delegated authorisations, for UK authorisations to place pre-charged equipment on the UK market from 30 March 2019.
You can only exchange EU authorisations held before 30 March 2019.
To do this you’ll need to:
If the Environment Agency approves your application they will register the UK authorisations on the UK F gas system in your name.
You must tell the European Commission the quantity that you have exchanged. You must not use the same authorisations in both the UK and EU markets
By 31 March 2020 you must provide independently verified evidence to the Environment Agency that you:
This evidence must include:
If you do not provide this evidence to the Environment Agency by 31 March 2020, your UK authorisations may be cancelled.
If you hold, or want to apply for, EU quota to place HFCs on the EU market, you should continue to follow the EU F gas regulation.
The European Commission will allocate your quota, adjusted to deduct your UK market share, from the point at which the UK leaves the EU system.
To continue to be eligible for EU quota to place HFCs on the EU market, you’ll need to do one of the following before 30 March 2019:
You must report on the UK F gas reporting system if each year you:
The deadline for reporting and the verification you need to submit to the Environment Agency will not change.
You must report:
The type of data you’ll need to enter will be similar to the EU registry.
The Environment Agency will publish guidance on how to use the UK reporting system in early 2019.
If you’re based outside the UK and EU and have an only representative based in the UK, you must appoint an only representative in the EU to continue to be eligible for EU quota after exit. The European Commission can advise.
Email the European Commission helpdesk CLIMA-HFC-REGISTRY@ec.europa.eu to find out how to specify or change an only representative on the EU system. Alternatively, read the European Commission’s guide on quota allocation, authorisation and reporting.
When the UK leaves the EU, many of the rules for F gases will not change, including requirements or restrictions:
Requirements in the UK will also not change on:
When the UK leaves the EU, the rules will stay the same for ODS that you:
You’ll have the same responsibilities to:
Rules on how you can supply and use ODS will remain the same, including for:
To place ODS on the UK market after 29 March 2019, you’ll need to apply for ODSquota on the new Environment Agency ODS system. You’ll need to:
If your application is successful the Environment Agency will notify you how much UK quota you have been allocated for 30 March to 31 December 2019.
To get quota for 2020 and subsequent years you must apply on the UK ODS system.
You’ll need to apply by 8 June every year for a quota for the following year. For example, if you want a quota to use in 2021, you must apply on the ODS system by 8 June 2020.
If approved, the Environment Agency will put your allocation on the ODS system.
Instructions on how to use the ODS system will be issued in early 2019.
You’ll need to use the new Environment Agency system, instead of European Commission systems, to apply for a licence to import or export ODS, including to and from the EU.
The information that you’ll need to provide to get a licence will not change.
The Environment Agency will publish guidance on how to register and use the new UK ODS system in early 2019.
You still must not trade with countries or territories which are not party to, or do not comply with, the United Nations Montreal Protocol.
You must report your ODS use by 31 March each year. You must report:
The Environment Agency will publish guidance on how to use the reporting system in early 2019.
The information you need to report will be similar to that reported under the EU regulation.
If you use ODS for laboratory and analytical uses you must register on the UK system and submit a declaration.
The Environment Agency will publish guidance on when you can start registering and the registration deadline, early in 2019.
Pete January 25th, 2019
Posted In: News & Info
On Wednesday 6th February 2019, REFCOM met with DEFRA to discuss:-... Read more →
Guidance sourced from: https://www.gov.uk/government/publications/fluorinated-gases-and-ozone-depleting-substances-how-to-do-business-if-the-uk-leaves-the-eu-with-no-deal/using-and-trading-fluorinated-gas-and-ozone-depleting-substances-rules-and-processes-if-the-uk-leaves-the-eu-with-no-deal Using and trading fluorinated gas and ozone-depleting... Read more →
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