HFC-23 offsets in the context of the EU emissions trading scheme

The document contends that HFC-23 destruction projects create perverse incentives for manufacturers to increase the production of potent greenhouse gases to profit from carbon credits. It highlights that these credits, which made up 59% of offsets used by European companies in 2009, do not support sustainable development and conflict with the goals of the UNFCCC and the Montreal Protocol.

• HFC-23 destruction projects are expected to generate approximately 478 million Certified Emission Reductions (CERs) by 2012 and over one billion CERs by 2020, with European installations surrendering 46,364,460 such credits in 2009 valued at roughly €552 million.
• HFC-23 credits constituted the majority of offsets used by European companies in 2009, accounting for 59% of their emissions reductions.
• The high profitability of HFC-23 credits—up to five times the profit of selling HCFC-22—has created a perverse incentive for manufacturers to increase the production of HCFC-22 to generate more HFC-23 for destruction and profit.
• HFC-23 projects conflict with the Montreal Protocol's goal of phasing out HCFCs and the UNFCCC's objectives, as the CDM has effectively financed the increased production of two potent greenhouse gases.
• Domestic legislation to control HFC-23 emissions is hindered because such laws would potentially invalidate the 'additionality' requirement necessary for CDM projects.

APA

CMW (2010). HFC-23 offsets in the context of the EU emissions trading scheme. Carbon Market Watch. https://carbonmarketwatch.org/2010/07/15/hfc-23-offsets-in-the-context-of-the-eu-emissions-trading-scheme/

Chicago

CMW. HFC-23 offsets in the context of the EU emissions trading scheme. Carbon Market Watch, 2010. https://carbonmarketwatch.org/2010/07/15/hfc-23-offsets-in-the-context-of-the-eu-emissions-trading-scheme/.

Wikipedia

{{cite report |last1=CMW |title=HFC-23 offsets in the context of the EU emissions trading scheme |publisher=Carbon Market Watch |date=15 July 2010 |url=https://carbonmarketwatch.org/2010/07/15/hfc-23-offsets-in-the-context-of-the-eu-emissions-trading-scheme/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cmw2010hfc23, author = {CMW}, title = {{HFC-23 offsets in the context of the EU emissions trading scheme}}, institution = {Carbon Market Watch}, year = {2010}, month = jul, url = {https://carbonmarketwatch.org/2010/07/15/hfc-23-offsets-in-the-context-of-the-eu-emissions-trading-scheme/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }