Illegal trade in F-gases: Industry calls for tougher penalties and stricter laws

The illegal trade in fluorinated refrigerants (F-gases) is increasingly becoming a serious problem for the climate, the economy and security. Several leading organisations in the refrigeration, air conditioning and heat pump sectors have therefore published a joint statement on the planned implementation of the EU Environmental Criminal Law Directive and are calling for significantly stricter measures against environmental crime.

The associations involved include the Federal Guild Association of German Refrigeration Engineers (BIV), the BTGA, the VDKF and the Building Air Conditioning Trade Association (FGK). Together, they welcome the planned tightening of environmental criminal law – but still see a considerable need for improvement in several areas.

Why the illegal trade in F-gases is so problematic

F-gases are used in many refrigeration, air conditioning and heat pump systems. According to the associations, the illegal trade in these substances has serious consequences:

• The objectives of the European F-gas Regulation to reduce greenhouse gas emissions are being undermined.
• Legitimate market participants come under economic pressure, as illegal refrigerants are offered at significantly lower prices.
• Service technicians and operators are put at risk because illegal refrigerants are often mislabelled and may contain flammable or toxic substances.
• Furthermore, the efficiency and operational safety of systems suffer.

Particularly critical: according to the statement, many illegally traded refrigerant cylinders do not contain the stated quantity. This poses considerable risks for installers and system operators.

An overview of the industry’s demands

The associations generally support the current draft bill but are calling for further measures.

1. Extension of the ‘serious chemical offence’

The current draft bill provides for lengthy prison sentences where organised gangs trade in F-gases illegally on a commercial basis. However, the industry considers these thresholds too high, as proving gang-related and commercial activity is difficult in practice. Instead, either gang-related or commercial activity alone should suffice.

In addition, trading in “significant quantities” of F-gases should automatically be classified as a serious offence. As an example, the organisations cite a pallet of twelve refrigerant cylinders, which can already amount to around 170 tonnes of CO₂ equivalent.

2. Prosecution across the entire supply chain

To date, it is primarily the initial illegal placing of F-gases on the market in the EU that is prosecuted. Subsequent resale within the EU, however, often goes unpunished under criminal law. The associations are therefore calling for the scope of the offence to be extended to cover the entire supply chain.

3. Greater powers for investigative authorities

To combat illegal trade more effectively, investigators should in future not only be permitted to use telecommunications surveillance but also be able to carry out targeted online investigations.

4. A separate criminal offence for the illegal trade in F-gases

In the long term, the associations are even calling for a separate criminal offence to be established within the core criminal law to clearly and permanently penalise the illegal trade in F-gases.

Implications for the refrigeration and air conditioning sector

The discussion highlights just how closely environmental policy, climate protection and technical building services are now intertwined. Particularly at a time of growing heat pump and air conditioning markets, the importance of secure and legal refrigerant supply chains is also increasing.

The associations involved collectively represent thousands of companies and tens of thousands of employees in Germany. They view stricter rules not only as a contribution to climate protection, but also as an important step towards fair competition and greater security in the market.

Sources:

• Press release ‘Tougher penalties called for illegal refrigerant trade’
• Joint statement on the Environmental Criminal Law Directive