As India gears up to phase out harmful refrigerants, cost concerns remain

While India has shown its readiness to embrace green path for the development by deciding to ratify the crucial climate change agreement on October 2, experts have raised concerns over the additional cost to be incurred by the industry for migrating to greener technologies. 

To mitigate this challenge, the Indian Government will press for an equitable agreement at the forthcoming international conference on Climate Change Adaptation 2016 (CCA 2016), to be held at Kigali (Rwanda) next month, to negotiate on phasing down of harmful greenhouse gas hydrofluorocarbons (HFCs). 

“India will play a constructive role in global efforts to mitigate climate change. India will seek an equitable agreement in Kigali that is in the best interests of the nation, its people, as well as the larger global community,” said Anil Dave, Minister of State of Environment, Forest and Climate Change, at a meeting called by his ministry to discuss the phase out of HFCs. 

There are various studies which suggest that there would be huge additional cost involved in migrating to greener technologies. According to a research by the Council on Energy, Environment and Water (CEEW), the economy wide cost for transition for India between 2015 and 2050 would be Euro 12 billion for the Indian proposal and Euro 34 billion for the North American proposal.

“There are different estimates as to what it will cost to make the switch. But we must emphasise in Kigali that the commitment of donor countries has to be absolute and this assurance is necessary to fulfil any commitments India makes. One thing is clear. The debate is not on what needs to be done, but on how to do it. We have to make sure all parties are comfortable. A fine balance has to be achieved between national interests and environmental concerns,” said R R Rashmi, Additional Secretary, MoEFCC.

At the meeting, held on September 26, 2016, stakeholders across industry groups and international experts discussed the challenges faced by India in phasing down high global warming potential (GWP) HFCs.

Experts suggested that India should assert that funding (from the multilateral fund) for research and development of low GWP alternatives, and for capacity building of the servicing sector should be disbursed to developing countries as soon as possible, so that this technological transition can be achieved without any delay. International experts highlighted that early funding is available for countries to choose energy-efficient alternatives and move for an earlier phase-down.

At the meeting on Monday, representatives from the industry voiced various challenges they face like patent issues, cost of moving to alternatives, lack of research on performance of refrigerants in high ambient temperature regions, and competitiveness of the industrial sector. Moreover, several voices from the industry questioned the safety, flammability and toxicity issues, with some of the low GWP alternatives and emphasised on the need for creating an incentive-structure for scaling up potential alternatives.

Stating that India remains committed to address the issue of climate change, Dave said, “All stakeholders should focus on R&D towards implementing holistic solutions that address consumption as well as emission, as well as mechanisms to finance such initiatives. There is a need to develop indigenous research and development capabilities for India specific HFC alternatives.” 

Representatives from MoEFCC, civil society organisations, such as Refrigeration and Air-Conditioning Manufacturers Association (RAMA), Refrigerant Gas Manufacturers Association (REGMA), Indian Polyurethane Association (IPU), Council on Energy, Environment and Water (CEEW), National Research Development Corporation (NRDC) & The Energy and Resources Institute (TERI), as well as representatives from industry, were present at the meeting.