UK F-Gas Quota System Explained: How HFC Phase-Down Works in Practice
The UK F-Gas quota system controls how much HFC refrigerant can enter the UK market each year. It is the mechanism through which the UK phase-down of high-GWP fluorinated greenhouse gases is enforced. Understanding how the quota system works helps UK HVAC engineers and businesses understand why refrigerant prices are rising and plan their purchasing accordingly.
How the UK HFC Quota System Works
The UK government sets a total annual cap on HFC production and importation, measured in CO2-equivalent tonnes. This cap is allocated to quota holders — large refrigerant producers and importers. Quota holders can sell quota-backed HFCs to distributors and ultimately to UK refrigerant suppliers. As the annual cap decreases, the value of quota increases, which flows through to refrigerant prices.
End users (HVAC companies, refrigeration contractors) do not need to hold quota. They simply buy from quota-holding suppliers. The cost of quota is built into the market price of the refrigerant.
How CO2-Equivalent Is Calculated
CO2e = Mass in kg × GWP ÷ 1,000 = tonnes CO2e
Examples showing quota consumption per 100 kg of refrigerant:
- R404A (GWP 3,922): 100 kg uses 392 tCO2e quota
- R410A (GWP 2,088): 100 kg uses 209 tCO2e quota
- R407C (GWP 1,774): 100 kg uses 177 tCO2e quota
- R134a (GWP 1,430): 100 kg uses 143 tCO2e quota
- R32 (GWP 675): 100 kg uses 67.5 tCO2e quota
- R1234yf (GWP 4): 100 kg uses 0.4 tCO2e quota — essentially unrestricted
How Phase-Down Affects Refrigerant Prices
As the total annual UK HFC quota is cut year by year, the supply of quota-backed HFC available to the market falls. Demand from the large installed base of existing equipment remains relatively constant in the short term. The result is a price increase — especially for high-GWP gases that consume the most quota per tonne.
R404A is the most affected because its high GWP (3,922) means each tonne it places on the market uses nearly 6× the quota of R32. This makes R404A progressively more expensive relative to lower-GWP alternatives.
All refrigerant from Refrigerant Gas Supplies Ltd is supplied within the UK F-Gas quota framework. R32, R410A, R404A — compliant UK stock.
Frequently Asked Questions
Do I need to register for F-Gas quota as an HVAC engineer?
No. Individual engineers and HVAC companies do not hold or need quota. Quota is held by large producers and importers. You simply buy quota-backed refrigerant from a compliant UK supplier.
Why is R404A so much more expensive than R32?
R404A (GWP 3,922) uses 5.8× more F-Gas quota per tonne than R32 (GWP 675). As annual quotas tighten, the cost of that quota becomes a larger part of R404A’s price, while R32’s lower quota consumption keeps its price more stable.
Will refrigerant prices keep rising in the UK?
For high-GWP refrigerants (R404A, R410A, R407C), the quota phase-down trajectory suggests continued price increases. R32 and R1234yf are more price-stable due to lower GWP. HFO refrigerants like R1234yf are not subject to HFC quotas.