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On May 19, 2020, the Chinese Ministry of Ecology and Environment (MEE) published the draft revision to the Regulations on Administration of Ozone-depleting Substances [1] to solicit public comments. According to the MEE, the Regulations will be renamed “Regulations on Administration of Ozone-depleting Substances and Hydrofluorocarbons” to incorporate hydrofluorocarbons (HFCs) into the regulatory framework.
To follow the Montreal Protocol on Substances that Deplete the Ozone Layer [2], the existing Regulations was implemented on June 1, 2010, which marked the first of China’s endeavors to convert an international environmental convention into a piece of domestic legislation. Over the past decade, China has used its current regulatory system to control the production, circulation, use and import/export of ozone-depleting substances (ODSs).
On January 1, 2019, the Kigali Amendment to the Montreal Protocol [3] came into force, making the Protocol an even more powerful instrument against global warming. The amendment creates a list of 18 HFCs subject to the phasedown obligations and other controls under the Montreal Protocol. Countries are committed to reducing the production and consumption of HFCs by more than 80% over the next 30 years.
In light of the need to keep up with developments in the Montreal Protocol and adapt to domestic regulatory practices, the MEE started working on the revision of the Regulations last year. With an eye to enabling targeted control measures, the revision provides explicit definitions for the acts of “production” and “usage” with respect to ODSs and HFCs. For example, “production” is defined as “any activities producing ODSs and HFCs, including activities which produce ODS and HFC as by-products or joint-products”.
In addition to well-clarified scope of control, the revision also specifies the coverage of the quota licensing system, and lays out management requirements and restrictions imposed throughout the lifecycle of ODSs and HFCs, including their production, trading and usage.
Compared with its EU equivalent, F-Gas Regulation [4], this draft revision can ensure greater information transparency through involvement of various parties concerned and network connection between businesses and authorities, enable comprehensive management of ODSs and HFCs through introduction of supporting measures and impose concrete penalties on violations.
Moreover, the revision also provides that measures will be taken to control the import/export of ODSs and HFCs, and an inventory will be established for ODSs and HFCs which are subject to import/export control measures. For businesses wishing to import/export substances listed in the inventory, they will need to apply for quotas to relevant authorities and submit materials indicating the variety, quantity, source, use, etc. of such substances.
