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On October 13, the Philippines' Department of Environment and Natural Resources (DENR) issued a chemical control order (CCO) for hydrofluorocarbons (HFCs) to regulate, restrict and prohibit their import, export, use, manufacture, transport, processing, storage, possession and sale. All HFC importers, dealers, resellers, and retailers and service providers must register with the Environmental Management Bureau (EMB).
The CCO sets the objectives of:
Reducing the risk of HFCs exposure on human health and the environment
Increasing awareness on the toxicity of HFCs, as well as the availability of technically superior and safe alternatives
Ensuring the proper implementation of the existing framework and appropriate prevention-based programs to mitigate, reduce, and eliminate risks from HFCs.
The CCO covers all 18 HFCs contained in Annex F, Groups I and II of the UN’s Montreal Protocol on Substances that Deplete the Ozone Layer. A phase-down schedule for these substances is proposed in the CCO:
By January 1, 2024, freeze the baseline consumption, the average production/consumption of HFCs in 2020, 2021 and 2022 plus 65% of HCFC baseline production/consumption.
By January 1, 2029, reduce baseline consumption by 10%;.
By January 1, 2035, reduce baseline consumption by 30%;
By January 1, 2040, reduce baseline consumption by 50%;
By January 1, 2045, reduce baseline consumption by 80%, and importation of the remaining 20% is allowed for the servicing sector.
Consistent with the above phase-down schedule, starting from 2024, an annual import quota allocation system will be implemented by the EMB. The annual import quota is non-cumulative, that is, any remainder of the quota allocation for a particular substance is deemed consumed at the end of the calendar year. Only those importers that imported HFCs from 2020-2022 will be provided quota allocation.
