“Kigali Amendment” approved in Brazil, related to use of HFCs

On August 05, 2022, the Kigali Amendment came into force in Brazil.

The Amendment is a complement to the Montreal Protocol, which is an international treaty aimed at reducing the emission of substances that contribute to the destruction of the ozone layer in the atmosphere, and which provides for the gradual reduction of the employment of gases known as hydrofluorocarbons (HFCs) in refrigeration and air-conditioning appliances.

The Amendment was initially signed in 2016 by 119 countries, including Brazil, but has already been ratified by a total of 137 countries.

Since 2019, Draft Legislative Decree No. 1,100/18 was pending before the House of Representatives and was transformed into Legislative Decree No. 95/2022 following its enactment by the President of the Brazilian Federal Senate, Rodrigo Pacheco.

In addition, the Kigali Amendment establishes a calendar containing specific deadlines and targets for countries from different economic groups to reduce and eliminate the use of HFC gases, replacing them with alternatives that do not contribute to global warming.

Specifically in Brazil, as in other developing countries, the following deadlines were established and will be subject to review every five years, if new technologies reach the market:

1. By 2024: Consumption must freeze at baseline HFC levels;
2. By 2029: 10% reduction in HFC emissions;
3. By 2035: 30% reduction in HFC emissions; 
4. By 2040: 50% reduction in HFC emissions; and
5. By 2045: 80% reduction in HFC emissions.

Subsequently to  the enactment of the Amendment, Brazil must now present the necessary documentation to the United Nations in order to gain access to the Montreal Protocol’s Multilateral Fund, which is endowed with financial resources aimed at adapting industrial procedures and providing technical training of the workforce.

Demarest’s Environmental team is available to provide any further clarifications that may be necessary.