In 2024, the Government of India announced that no new clearances will be granted for the production of refrigerant gases after 2027. This directive, issued by the Ministry of Environment, Forest and Climate Change (MoEFCC), aligns with India’s commitments under the Kigali Amendment to the Montreal Protocol, ratified in 2016. The policy aims to phase down hydrofluorocarbons (HFCs), potent greenhouse gases used in refrigeration and air conditioning, to reduce India’s carbon footprint and meet international climate goals.

This move marks a critical regulatory milestone, balancing environmental imperatives with the challenges of industrial transition and economic impacts on the refrigerant manufacturing sector.

Legal Framework Governing Refrigerant Gas Regulation

The decision is rooted in the Environment Protection Act, 1986 (Section 3), empowering the Central Government to take measures to protect the environment. The Ozone Depleting Substances (Regulation and Control) Rules, 2000 regulate production and consumption of substances harmful to the ozone layer, including refrigerants. India’s ratification of the Kigali Amendment mandates an 85% phase-down of HFCs by 2047, requiring domestic enforcement mechanisms.

Additionally, the Air (Prevention and Control of Pollution) Act, 1981 and judgments by the National Green Tribunal (NGT) have reinforced controls on refrigerant emissions, emphasizing the environmental and health risks posed by these gases.

• Environment Protection Act, 1986: Section 3 authorizes Central Government to regulate production and usage of environmentally hazardous substances.
• Ozone Depleting Substances Rules, 2000: Control framework for substances including HFCs and HCFCs.
• Kigali Amendment, 2016: India committed to reducing HFC consumption by 85% by 2047.
• NGT rulings: Mandate stricter emission controls and compliance for refrigerant manufacturing units.

Economic Dimensions of the Phase-Down Policy

India’s refrigerant gas market was valued at approximately USD 1.2 billion in 2023, with a projected compound annual growth rate (CAGR) of 8% through 2027 (Frost & Sullivan Report, 2023). The phase-down of HFCs is estimated to reduce India’s greenhouse gas emissions by 1.5 billion tonnes CO2 equivalent by 2030 (MoEFCC).

The transition requires an estimated investment of INR 5000 crore by 2027 under the National Cooling Action Plan (NCAP) to develop low-global warming potential (low-GWP) refrigerants and associated technologies. The policy also anticipates an impact on approximately 15,000 workers in the refrigerant manufacturing sector, highlighting the need for workforce reskilling and industrial adaptation.

• Market size: USD 1.2 billion in 2023; CAGR 8% till 2027.
• Emission reduction: 1.5 billion tonnes CO2 eq. by 2030 via HFC phase-down.
• Investment: INR 5000 crore allocated under NCAP for transition.
• Employment: 15,000 direct jobs potentially affected post-2027.
• Import dependence: 40% of refrigerants imported, mainly from China and Middle East.

Institutional Roles in Implementation and Enforcement

The MoEFCC leads policy formulation and enforcement, with its Ozone Cell specifically managing Montreal Protocol and Kigali Amendment implementation. The Central Pollution Control Board (CPCB) monitors refrigerant emissions, while the Bureau of Indian Standards (BIS) sets standards for refrigerant gases and equipment.

The Ministry of Commerce and Industry regulates imports and exports of refrigerant gases, crucial given India’s 40% import dependence. State Pollution Control Boards (SPCBs) ensure local compliance, often coordinating with the NGT on enforcement actions.

• MoEFCC Ozone Cell: Coordinates international treaty compliance.
• CPCB: Monitors emissions and enforces pollution norms.
• BIS: Standardizes refrigerant quality and safety.
• Ministry of Commerce: Controls trade of refrigerant gases.
• SPCBs: Local enforcement and compliance monitoring.

Comparative Analysis: India vs European Union Refrigerant Regulations

Critical Policy Gaps and Challenges

India’s policy lacks a detailed roadmap for workforce reskilling and industrial capacity building to facilitate the transition from high-GWP refrigerants to climate-friendly alternatives. Without structured support, the 15,000 workers in the refrigerant production sector face job insecurity, risking economic disruption.

Moreover, enforcement capacity at the state level remains uneven, potentially undermining compliance. The absence of stringent timelines for industrial adaptation and incentives for innovation could delay India’s progress toward its Kigali commitments.

• Absence of comprehensive workforce reskilling programs.
• Limited industrial capacity-building initiatives.
• Uneven enforcement by SPCBs and regulatory bodies.
• Lack of clear incentives or penalties for industrial compliance.

Significance and Way Forward

The ban on new clearances for refrigerant gas production after 2027 is a decisive step toward fulfilling India’s international climate obligations and mitigating environmental harm from HFC emissions. To optimize outcomes, the government must:

• Develop a detailed transition roadmap including timelines for industry and workforce adaptation.
• Enhance capacity-building and reskilling programs for affected workers.
• Strengthen enforcement mechanisms at state and central levels.
• Promote domestic production of low-GWP refrigerants to reduce import dependence.
• Align financial incentives with environmental objectives to encourage innovation.

These measures will ensure India balances environmental commitments with economic sustainability and social equity.

Jharkhand & JPSC Relevance

• JPSC Paper: Paper 3 - Environment and Ecology; Paper 2 - Governance and Policy Implementation
• Jharkhand Angle: Jharkhand hosts several industrial units involved in chemical manufacturing; transition policies on refrigerants affect local employment and environmental quality.
• Mains Pointer: Frame answers highlighting the state’s industrial profile, potential for green transition, and the role of state pollution control boards in enforcing refrigerant regulations.