Chemours Netherlands B.V. from Dordrecht must pay a penalty of 1 million euros because the company has repeatedly brought more fluorinated greenhouse gases to the European market than it was allowed according to the allocated EU quota. This is a violation of the F-gas regulation overseen by the ILT.
This violation specifically concerns the import of HFC-23 (trifluoromethane). Chemours reported to the European Commission that this very potent greenhouse gas was imported for destruction, which is exempt from quota. However, investigations by the ILT revealed that Chemours used HFC-23 in the production process, resulting in a quota breach.
Penalty under coercive order
The European F-gas regulation is intended to reduce the emissions of these gases as much as possible. F-gases, and particularly HFC-23, contribute relatively significantly to climate change. European quotas ensure that less F-gases come to market over time. These are therefore being phased out and ultimately banned altogether. It is therefore crucial to ensure that the European quotas are not exceeded. If this happens, the European quota system is undermined.
In 2023, Chemours brought a total of 98,515 tons of CO2-equivalent more fluorinated greenhouse gases to market than allowed. Due to the use of HFC-23 in the production process, limited emissions of the substance into the atmosphere occur. Although it concerns small emission quantities of HFC-23, it is good to remember that 1 kilogram of HFC-23 is equivalent to 14.8 tons of CO2-equivalent. An average gasoline car emits this after driving around 123,000 km. Chemours now forfeits a penalty of 1 million euros for this violation. This is immediately the maximum amount that can be forfeited with this coercive order.
Purpose of the new coercive order
The coercive order based on which the amount is forfeited dates back to 2022. Chemours has since expressed good intentions to the ILT. However, this does not change the fact that the ILT finds it necessary to impose a new, higher penalty on the company. This is necessary because the coercive order from 2022 has run out. The purpose of this new order is again to prevent future quota breaches and to ensure that Chemours reports transparently from now on.