You may be aware that the European Commission has written to UK companies which hold reference values for HFC quota under the EU Fluorinated Greenhouse Gases Regulation, requesting data on how much HFC those companies placed on the market in the EU27 (ie the EU excluding the UK) in 2015, 2016 and 2017.
This exercise by the Commission is to prepare for running the EU HFC quota system once the UK leaves the EU. This could involve separating the UK portion of the market from the EU quota system. UK companies which place HFCs on the EU market would continue to get a quota allowing them to do so, but it would be reduced to deduct the UK market share. The Commission’s data gathering exercise is aimed at determining what the remaining EU27 market share amounts to. This data gathering exercise is conducted without prejudice to any negotiated solution which the UK and EU might agree.
With respect to the situation in the UK, the UK Government will translate EU legislation into UK law as closely as possible to provide certainty and stability for businesses. Therefore, the majority of the Fluorinated Greenhouse Gases (F-Gas) Regulation will continue to be in place after exit. That will include using a quota system to phase down HFCs by 79% by 2030. The UK is seeking a close relationship with the EU on F-Gases and separating the quota system may not be the eventual outcome of the negotiations. However, it is right that we continue preparing for all possible outcomes.
Therefore, in order to prepare for the possibility of a separate UK quota system, the UK Government will need to gather data from your company in the same way as the European Commission is gathering data from UK companies for the EU27 quota system.
Specifically, we need to know how much HFC you placed on the UK market in the years 2015, 2016 and 2017, so that we can allocate a quota to your company in order to place HFCs on the UK market after 30 March 2019. The information you provide would form the basis of your reference value for a possible future UK HFC quota. This data is not available at the moment as the information which you report on the European Commission’s HFC Registry does not differentiate between HFCs placed on the UK and EU27 markets.