European HFC Action Line spurs over 100 black-market trade investigations
December 15, 2021
Confidential reporting line established by European trade bodies has seen 125 evidence packs being provided to local authorities to support crackdown on illegal trade.
A European Action Line established to report concerns about the illegal trade of refrigerant across the continent received 156 anonymous submissions that led to investigations during 2020 and 2021.
The European FluoroCarbons Technical Committee (EFCTC) said that the black-market trade of HFCs across the UK and EU threatens smaller legitimate business and the continent’s overall environmental ambitions. Sales of Illegal refrigerants also suspected of supporting organised crime, according to the committee.
The EFCTC said that the 156 reports of potential illegal behaviour concerning the trade of HFC gas were investigated by the independent agency Kroll. The agency, which was contracted by the EFCTC, found that 30 per cent of reports received in 2020 originated in Italy, while 15 per cent of the calls received in 2021 related to the UK.
The EFCTC stated, “In 2020 and 2021, Kroll prepared 125 evidence packs that have been passed on to EU enforcement authorities and the European Anti-fraud Office, OLAF.”
“This evidence has helped in some of the 20 seizures of illegal HFCs that have taken place in Europe. The biggest seizure was in Romania in 2020, with a shipment coming from Turkey, in which customs officials found more than 7,000 cylinders in several trucks.”
Outside of the Action Line service itself, the EFCTC said 16 EU Member States were involved in a joint action, alongside OLAF and Europol, in September 2021 that led to 1,682 inspections undertaken during a five day period.
Illegal refrigerant with the equivalent value of 142,288 tonnes of CO2 emissions and an estimated marker cost of €10m (£8.5m) was said to be seized through the joint action. This led to seven arrests, 28 criminal infringements being detected and 706 ‘administrative infringements’ being uncovered.
Enforcement calls
The EFCTC Action Line has been cited by as an example of efforts by European trade bodies to support the reporting of compliance failures and illegal activity that could threaten to undermine EU rules on chemicals and materials.
EFCTC, which is sector member of the European Chemical Industry Council (CEFIC), said the authorities across Europe were being asked to prioritise stricter controls for importing chemicals and goods, including through online marketplaces.
These efforts should include improved coordination and data sharing between regulators, the private sector and civil society, the EFCTC added.
Association and organisations working across the HVACR sector have in recent years called for a similar focus on stricter enforcement to be included in any future iterations of F-Gas regulations in the EU and UK over fears about the unknown scale of the black-market HFC trade.