In anticipation of the forthcoming phase-down of hydrofluorocarbons (HFCs) under the American Innovation and Manufacturing (AIM) Act, the Environmental Investigation Agency (EIA), headquartered in Washington, D.C., is reaching out to industry stakeholders for their active participation in a survey aimed at monitoring wholesale refrigerant prices in the United States. The AIM Act, effective January 1, 2024, mandates the reduction of HFC production and consumption by 85% by 2036, employing an allowance and trading program overseen by the U.S. Environmental Protection Agency (EPA).
Commencing on January 1, 2024, the consumption and production allowance cap, relative to the baseline, will decrease from 90% to 60% for the period spanning 2024-2028.
To gauge the impact of this phasedown on the U.S. market, the EIA is conducting a survey within the industry to gather insights into wholesale market prices for commonly used HFC refrigerants. This includes, but is not limited to, R134a, R404A, R410A, R407C, R32, and optionally, data on other refrigerants such as R22. The EIA plans to analyze the survey results, aggregating data to discern general trends in the market.
Avipsa Mahapatra, Climate Campaign Director at EIA US, stressed the significance of understanding the market dynamics resulting from the HFC phase-down. “Comprehending the market impacts of the phase-down is critical to inform all stakeholders, including end users, on the benefits of a rapid transition away from HFCs,” Mahapatra remarked. “Wide participation in this survey will help us create a robust price index for providing industry insights and informing future policymaking.”
It is emphasized that only aggregate data will be shared publicly. The confidentiality of individual company responses and price data, as well as survey respondent identities and participating company names, will be strictly maintained. Wholesale distributors of refrigerants in the U.S. are encouraged to partake in this monthly voluntary survey, designed to be a brief and insightful exercise.
The EIA is requesting initial data for the months of November and December 2023 to be submitted by January 15, 2024. Subsequent monthly follow-ups will be conducted to track ongoing price changes and industry developments. The collaborative effort aims to facilitate a comprehensive understanding of market trends and contribute to informed policymaking in the evolving landscape of refrigerant management.