New government notice bans new production facilities for 13 types of HFCs as part of efforts to comply with the Kigali Amendment.
China’s Ministry of Ecology and Environment, together with the National Development and Reform Commission and the Ministry of Industry and Information Technology, has issued a new regulation titled “Notice on Strictly Controlling HFC Chemical Production and Construction Projects.” The policy is designed to ensure that China meets its obligations under the Kigali Amendment to the Montreal Protocol, which came into effect for the country in September 2021.
Hydrofluorocarbons (HFCs) are synthetic greenhouse gases widely used as substitutes for ozone-depleting substances. While they do not damage the ozone layer, they are potent contributors to global warming, and therefore fall under international restrictions. Under the Kigali Amendment, developing countries including China must freeze production and consumption of HFCs at baseline levels starting in 2024.
The notice introduces several key measures. From August 1, 2024, no new construction or expansion of facilities producing 13 specified HFCs will be allowed, except in cases where environmental impact assessments had already been approved. For the 18 HFCs already under quota management, companies may not increase production capacity or add new product types when modifying or relocating plants. Furthermore, any HFCs generated during trial production or as byproducts must also be included in the national quota system. Without proper quotas, these gases may only be used as raw materials or destroyed, and direct release into the atmosphere is strictly prohibited.
Officials explained that these steps are necessary because China faces significant challenges: its HFC industry is large, spanning over 50 producers and thousands of downstream users across refrigeration, firefighting, pharmaceuticals, and semiconductors. Cutting production could affect tens of thousands of jobs and the stability of supply chains. In addition, alternative technologies face hurdles such as patents, safety concerns, and high costs. Yet, strict control is essential to balance climate commitments with economic and industrial stability.
Looking forward, the notice is expected to reshape the fluorochemical industry in China, pushing companies to accelerate innovation in alternatives while aligning with global climate goals. The policy could also have international impacts, as China is a major exporter of HFC-based products. By strengthening compliance, China is signaling its determination to lead in climate action while ensuring sustainable industrial transformation.
Key Terms Explained
- HFCs (Hydrofluorocarbons): Man-made greenhouse gases used as refrigerants and in other applications; strong warming effect despite being ozone-friendly.
- Kigali Amendment: A global agreement under the Montreal Protocol aimed at phasing down HFCs to mitigate climate change.
- Quota Management System: China’s mechanism to cap and allocate allowable production and use of HFCs, ensuring total emissions remain within international limits.
