Emissions legislation to benefit innovative companies, claims Commission
The European Commission is claiming that its proposed legislation on the reduction of fluorinated greenhouse gases will benefit innovative companies and act as a catalyst for less innovative companies to step up their research efforts. The Commission proposal marks the first phase of the EU's climate change programme. It proposes legislation to reduce emissions of hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride, all of which are powerful greenhouse gases covered by the Kyoto Protocol. HFCs are used mainly as refrigerants, cleaning solvents and foam blowing agents, while PFCs are used in semi-conductor manufacture and as cleaning solvents. Sulphur hexafluoride is used in high voltage switch gear and magnesium production. Emissions in 1995 amounted to the equivalent of 65 million tonnes of carbon dioxide, and were predicted to rise to 98 million tonnes by 2010 if no cutback measures were taken. The legislation will have an impact on component and systems suppliers, which include small and medium sized enterprises, as well as car manufacturers. The effects will be more positive for those with a strong innovative base, claims the proposal: 'Many EU companies are global leaders in alternative refrigerant technologies. For these companies the proposal will have a positive effect as they can concentrate their research and development effort on new technologies. For less innovative companies, the proposal is likely to imply additional cost as they need to step up their research and development activities.' Car manufacturers are expected to fare similarly: 'Some European car manufacturers have carried out research into and development of alternative refrigerants for the past decade. For such companies the proposal will offer a business opportunity to commercialise the fruits of their work while less innovative companies in air conditioning will have to incur additional costs.'