ShareHCFC phase-out at risk from illegal trade
The phase-out of HCFCs under the Montreal Protocol could be undermined by black market trade unless enforcement agencies are prepared, according to the report Risk Assessment of Illegal Trade in HCFCs, jointly produced by EIA and UNEP.
The phase-out of HCFCs under the Montreal Protocol could be undermined by black market trade unless enforcement agencies are prepared, according to the report Risk Assessment of Illegal Trade in HCFCs, jointly produced by the Environmental Investigation Agency (EIA) and UN Environment Programme (UNEP).
Given the booming production of, and demand for, HCFCs in developing countries, combined with on-going demand and limited supply due to the restrictions in place in developed countries, the market conditions appear to be in place for a possible repeat of the wide scale smuggling seen during the CFC phase-out,” said EIA report co-author Julian Newman. The situation in Europe illustrates how illegal trade can arise as a result of a phase-out. As of January 2010, demand for HCFCs within the EU must be met by using either reclaimed or recycled chemicals; however, demand for HCFCs for refrigeration and air-conditioning equipment servicing remains higher than legal supplies can satisfy.
“In Europe, there’s a risk that such demand could undermine the ban on importation and use of virgin HCFCs which came into force at the beginning of 2010; with the cost of HCFC-22 in the EU ranging from € 18-30 per kilo and the chemical available from developing countries at about € 2 per kilo, excluding shipping, the incentive for smugglers to step in to meet the demand is clear. There’s little doubt that the emergence of a global black market in illegal HCFCs is a very real and significant threat.” added J. Newman. “What’s different this time around is that we have the prior experience gained in combating CFC smuggling.”
Given the booming production of, and demand for, HCFCs in developing countries, combined with on-going demand and limited supply due to the restrictions in place in developed countries, the market conditions appear to be in place for a possible repeat of the wide scale smuggling seen during the CFC phase-out,” said EIA report co-author Julian Newman. The situation in Europe illustrates how illegal trade can arise as a result of a phase-out. As of January 2010, demand for HCFCs within the EU must be met by using either reclaimed or recycled chemicals; however, demand for HCFCs for refrigeration and air-conditioning equipment servicing remains higher than legal supplies can satisfy.
“In Europe, there’s a risk that such demand could undermine the ban on importation and use of virgin HCFCs which came into force at the beginning of 2010; with the cost of HCFC-22 in the EU ranging from € 18-30 per kilo and the chemical available from developing countries at about € 2 per kilo, excluding shipping, the incentive for smugglers to step in to meet the demand is clear. There’s little doubt that the emergence of a global black market in illegal HCFCs is a very real and significant threat.” added J. Newman. “What’s different this time around is that we have the prior experience gained in combating CFC smuggling.”