A. Addressing the environmental impact of refrigerants is essential for Daikin as a manufacturer of both equipment and refrigerants.
Air conditioners make people's lives more comfortable and productive, but we cannot overlook their contribution to climate change through hydrofluorocarbon refrigerants and energy consumption. Global warming is expected to become a growing problem especially in the economically emerging countries where air conditioner demand is on the rise. We believes that an effective means of reducing the Earth's overall global warming is to spread the use of energy-efficient air conditioners that use refrigerants with low global warming potential (GWP), thus Daikin is proactively engaged in reducing the environmental impact of refrigerants.
In 1987, the Montreal Protocol was adopted for the purpose of restricting the production, consumption and trade of particular substances in order to protect the ozone layer. CFCs, which had been used as refrigerants for air conditioning equipment, were completely abandoned. Furthermore, under the Montreal Protocol, HCFCs (an alternative to CFCs) will be phased out almost entirely by 2020 in non-A5* countries and by 2030 in A5* countries.
HFCs have been used as alternative to HCFCs because of zero ODP value, however the GWP of HFCs had been considered to be a problem. With regards to GWP, in October 2016, the Montreal Protocol parties agreed to phase down HFCs in CO2 equivalent terms under the Kigali Amendment. The Kigali Amendment will take effect in January 2019.
Daikin welcomes the Kigali Agreement for an HFC phase down in CO2 equivalent terms under the Montreal Protocol. To mitigate future global climate change, it is important to take a "Sooner, the Better" approach. Based on this idea, we will achieve this target by not only refrigerant conversion, but also by conducting comprehensive measures such as reducing refrigerant charge volume, reducing refrigerant leakage and promoting recovery/recycle of refrigerants.