chilling Facts vii: Are Europe’s supermarkets ready to quit HFCs? ABOUt EIA EIA is an independent campaigning organisation committed to bringing CONtENtS about change that protects the natural world from environmental crime and abuse. We have developed innovative and effective investigative methods 3 THE 2017 REPORT for defending the environment and seek lasting solutions to the problems 5 KEY FINDINGS we uncover. As part of our work, we have undertaken ground-breaking 9 UPTAKE OF HFC-FREE COOLING investigations into the illegal trade of ozone-depleting substances (ODS) 13 THE HIDDEN PHASE-DOWN and have been closely involved in international ozone and climate negotiations for well over a decade. 17 LEAKAGE 62/63 Upper Street London N1 0NY, UK 19 ENERGY EFFICIENCY IN WARM CLIMATES Tel: +44 (0) 20 7354 7960 [email protected] 21 CONCLUSIONS www.eia-international.org 22 RECOMMENDATIONS June 2017 © Environmental Investigation Agency 2017 This report was produced by the London office of the Environmental Investigation Agency (EIA) with contributions from: Hans Verolme and Janine Korduan – Climate Advisers Network, Berlin BACKGROUND Miriam Zaitegui – ECODES, Madrid Hydrofluorocarbons (HFCs) are potent climate Francisco Ferrera and Filipa Alves – ZERO, Lisbon pollutants widely used as cooling agents in Thank you to all the retailers who participated refrigeration and air-conditioning. In Europe, and allowed us to share their data. the supermarket sector represents about No part of this publication may be reproduced in any form or by any means without permission one-third of total HFC consumption in carbon in writing from EIA. dioxide-equivalent (CO 2e). 1 EIA is solely and entirely responsible for the contents of this report Since 2008, EIA has carried out a series of supermarket surveys to document the use of HFCs and climate-friendly alternatives All images © EIA unless otherwise stated in Europe. Design: www.designsolutions.me.uk Primarily introduced as replacement refrigerants for ozone- depleting substances (ODS) such as hydrochlorofluorocarbons (HCFCs), HFCs are some of the most powerful greenhouse gases in existence, with global warming potentials (GWP) hundreds to thousands of times more powerful than CO 2. Phasing out these gases in favour of climate-friendly alternatives represents one of the most viable and cost-effective near-term solutions to tackling climate change. COVER IMAGE: EU flag – © Badboo | Dreamstime.com Ice – Istock © myshkovsky 2 tHE 2017 REPORt Since 2008, EIA’s Chilling Facts reports have documented the growing uptake of natural refrigerants among some of the world’s leading retailers, reflecting a market shift towards climate-friendly refrigeration in the supermarket sector. Since the last report, Chilling Facts VI : For the seventh Chilling Facts report, Closing the door on HFCs, was published 22 retailers participated by submitting in 2014, the HFC regulatory landscape data covering the 2015 calendar year has changed dramatically. In 2015, the from supermarkets across 37 countries. European Union (EU) F-gas Regulation Our findings show that the uptake of came into force, putting in place a HFC-free technology is well under way fast-acting HFC phase-down that will across the EU, with CO 2 transcritical slash HFC supply by approximately systems spreading eastward and 48 per cent in 2018. 2 southward throughout Europe. Then, in October 2016, the 28th Meeting This year’s participants have once of Parties to the Montreal Protocol again shown that taking advantage of adopted the Kigali Amendment on HFCs, newly optimised refrigeration equipment an historic accord committing the and installing CO 2 transcritical systems world’s nations to significantly reduce with parallel compression and ejector consumption and production of HFCs. technology will reap energy efficiency It is estimated the Kigali Amendment rewards, even in locations in Brazil, will prevent 70 billion tonnes CO 2e Italy and southern Spain. For retailers by 2050 under a business as usual still struggling to introduce natural scenario, avoiding more than 0.4°C refrigerant technology in warmer warming by the end of the century. 3 climates, these latest developments should finally put to bed the myth that In keeping with the positive political carbon dioxide systems cannot keep developments that have been made on their cool in warm temperatures. HFCs, 2016 also saw the Consumer Goods Forum (CGF) agree a new Our survey represents just a snapshot Refrigeration Resolution, committing of the number of natural refrigerant bElow: its members, wherever viable, to systems on the market. Industry expert Vincent Biruta, President and immediately adopt low-GWP refrigerants Shecco estimates there are almost 9,000 Minister of Natural Resources for across their estates and to work with CO 2 transcritical systems in operation in Rwanda, gavels the adoption of their supply chains, governments, civil Europe and predicts an additional 6,000 the Kigali Amendment to the society and other stakeholders to new systems each year as the EU F-Gas Montreal Protocol. remove any remaining barriers. 4 phase-down gets well under way. 5 D S I I © 3 EIA’s supermarket survey was designed , price hikes and supply shortages, are “Since the last report, in part, to help gauge readiness of the clearly trailing behind in adopting European supermarket sector for HFC-free technology. We have already Chilling Facts VI: implementation of the F-Gas Regulation. seen HFC suppliers increase the price Closing the door on The findings show that while retailers of HFC-404A by 62 per cent in the first are well aware of upcoming bans, there quarter of 2017. 6 HFCs, was published is a lack of understanding or consideration in 2014, the HFC of the impact of the phase-down, which Many retailers have recognised the is based upon a much faster transition need to stop using HFCs with a very regulatory landscape away from HFCs than that predicated on high GWP, such as HFC-404A and the bans. Although many retailers are HFC-507A, and their use is declining. has changed adopting HFC-free technology, few are However, the use of other high-GWP dramatically” currently matching the level of uptake HFCs such as HFC-134a and HFC-407A required to meet the phase-down. (with GWPs of 1,430 and 2,107 respectively) is rapidly increasing. In particular, we are concerned at the These HFCs will not be exempt from lack of awareness relating to the large the price hikes caused by ongoing HFC supply cut in 2018, which in real demand, with prices already increasing terms is as much as 48 per cent below by 32 per cent in the first quarter the baseline. This deep cut combined of 2017. 7 with ongoing HFC usage in a sector that was expected to be a front EIA urges retailers to act quickly to runner in the shift away from HFCs comply with the EU F-Gas Regulation risks leaving many retailers with and avoid spiralling HFC costs by eye-wateringly high annual refrigerant installing HFC-free systems in all bills. Smaller retailers, vulnerable to new supermarkets and refits. GREEN COOlING lEADERS P the Green Cooling leader title is awarded to those retailers who demonstrate real commitment to rolling out HFC-free refrigeration across their global estate. this year, our Green Cooling leaders are Albert Heijn, introduced natural refrigerants to stores across its Aldi Süd, Carrefour, Kaufland, Metro Cash & Carry, estate, including in China, Russia and turkey. Migros, tesco and Waitrose. Kaufland has also been awarded Green Cooling leader In keeping with the ambition required to meet the goals status as a result of its commitment to use natural of the EU F-Gas Regulation, retailers are assessed on refrigerants across its estate with over 130 HFC/CO 2 their general readiness for the phase-down, including hybrid cascade systems in eastern European stores their efforts to transition away from HFCs beyond what and a new commitment to HFC-free systems in all new is required by upcoming bans. stores and major retrofits. Other criteria for determining Green Cooling leader Albert Heijn, which was reported under the name status include willingness to address high leakage Royal Ahold in Chilling Facts VI , has earned its Green rates of refrigeration equipment, use of HFC-free Cooling leader status due to committed investment technology in warmer climates and a demonstrated in HFC-free technology and impressively low drive to communicate the benefits of using natural leakage rates. refrigerants to wider industry and the general public. Retaining the title from our 2014 report are: Aldi Süd – this year, three new retailers have been nominated which impressed us with its large roll-out of HFC-free as Green Cooling leaders. Having criticised parent refrigeration, including now in the UK; Carrefour – with company Metro for its lack of natural refrigerant use its pioneering work with transcritical CO 2 in warmer outside of its domestic stores in our 2014 report, EIA is climates; and tesco, Migros and Waitrose – with their pleased to announce that Metro Cash & Carry has been continued drive to move away from HFCs across awarded Green Cooling leader status, having since their estates. 4 KEY FINDINGS ALBERT HEIJN ALDI NORD ALDI SüD 998 stores, HQ in Netherlands, 4,876 stores, HQ in Germany 3,429 stores, HQ in Germany reported under Royal Ahold in Chilling Facts VI GOOD: GOOD: GOOD: • Operating five CO 2 cascade systems • Has new natural refrigerant systems across Europe, including 111 CO 2 cascade systems in • Since 2013, the number of stores