Scope:

The evaluation covered the Ozone Regulation and three implementing instruments, in particular regarding laboratory and analytical uses of ozone-depleting substances (Commission Regulation (EU) No 291/2011), process agent users (Commission Decision 2010/372/EU) and quota allocation procedures (Commission Regulation (EU) 537/2011).

Estimated savings and benefits

The evaluation identified some scope for reducing administrative burden for SMEs, linked to the requirements of quota, registration and customs procedures, as well as simplification of the legal text.

Which objective(s) does the Commission pursue?

Based on the evaluation outcomes, an impact assessment (IA) explored policy options for improving Regulation (EC) No 1005/2009 in order to achieve the overall policy objectives in a more efficient, coherent and clear manner, to investigate the possibilities for attaining additional emission reductions to the extent feasible in the light of the Green Deal; and to maintain a good level of control to avoid illegal activities.

Estimated savings and benefits

The preferred option resulting from the IA focuses on simplifications, better coherence and clarifications, as well as measures that would prevent emissions of ozone depleting substances from panels of insulation foams during renovation or demolition activities. It also includes comprehensive monitoring and control. These measures are associated with moderate costs.

On the basis of the preferred option, the new Ozone Regulation that has been proposed by the Commission would represent a significant step towards limiting global temperature rise in line with the Paris Agreement. In fact, by introducing new measures targeting products in which ozone depleting substances (ODS) were legally used in the past, the EU would prevent the equivalent of 180 million tonnes of CO₂ and 32,000 tonnes of ozone depleting potential (ODP) emissions by 2050.

The proposal for a new Regulation delivers the following:

• Higher ambition: Most additional emission savings would be achieved by requiring ODS to be recovered or destroyed from insulation foams when buildings are renovated or demolished;

• Streamlining: Industry and authorities would benefit from cost savings due to a modernised licensing system and the end of obsolete ODS quota and laboratory registration requirements;

• Improved enforcement and monitoring: Measures would be introduced to fight illegal activities that would make it easier for customs and surveillance authorities to control ODS imports and exports. The reporting would be extended to cover more substances and activities to better understand the remaining trade of ODS, their emissions and any future risks.

A significant focus of the proposal is on increasing efficiency of the existing measures, rather than creating new ones, given that this is a regulation that has already been evolving over three decades in response to obligations under the Protocol, new developments and changes in technologies. The proposal is expected to deliver a number of simplification benefits to business. In particular, the abolishment of the registration requirements for laboratory uses will result in cost savings for companies as it will decrease the administrative burden on the 2,211 laboratories registered in 2020, often SMEs. Moreover, abolishing the annual quota allocation system also reduces administrative costs for undertakings that have to apply for such quota on a yearly basis. Finally, business applying for longer-term licences instead of per-shipment licences will reduce administrative costs. The registration and issuing of licenses referred to in this proposal will be implemented through the existing ODS licensing system. An adaptation is required for its interconnection with the national customs authorities systems via the EU Single Window Environment for Customs. Through this interconnection, the validity of licences will be automatically checked at customs for every single shipment. Until the latter electronic system is operable in all Member States, the current licensing system will continue.

In total, the cost savings achievable are up to €180,000 per year for industry (plus non-recurrent savings of €36.000), and 254 person days per year for authorities in addition to a non-recurrent saving of 440 person days and yearly IT costs savings of €31,500.