Why Refrigerants Became an ESG and Carbon Issue
Carbon management at cold-storage warehouses, food plants and cold-chain logistics centers usually starts with cutting electricity and gas use. At many of these sites, though, refrigerant leakage is a bigger source of emissions than energy use.
HFCs (hydrofluorocarbons) spread widely because, unlike CFCs and HCFCs, they don't deplete the ozone layer. Their global warming potential (GWP), however, is hundreds to thousands of times that of CO2. Every kilogram that leaks counts toward a site's direct (Scope 1) emissions.
Take a refrigeration system charged with 100 kg of R404A that leaks 15% a year. That is 15 kg × 3,922 = about 58.8 tCO2e. At Korea's grid emission factor (about 0.4567 tCO2/MWh), that equals roughly 129 MWh of electricity use a year. Large customers collecting Scope 3 data are also starting to ask suppliers how much refrigerant they top up each year.
Korea's HFC Phase-Down Schedule and Legal Basis
Korea is implementing the Kigali Amendment to the Montreal Protocol on the following schedule:
Korea amended its Ozone Layer Protection Act to add HFCs to the controlled substances whose manufacture and import volumes are regulated. As each step takes effect, supply of existing HFC refrigerants is likely to tighten and prices to rise. Refrigeration and HVAC equipment typically lasts 10–15 years, so equipment bought today will still be running when the 30% cut arrives in 2035. The refrigerant you choose at replacement will drive your operating costs for the next decade.
New in 2027: KRW 20bn for Low-GWP Equipment Replacement
The government's 2027 budget proposal includes a new KRW 20 billion program to replace equipment with low-GWP alternatives. According to press reports, the Ministry of Climate, Energy and Environment is considering funding installation costs for about 40 sites, mainly cold-storage facilities, that switch to natural or other low-GWP refrigerants. That works out to an average of roughly KRW 500 million per site.
Exporters: Watch the EU F-gas Regulation
The EU overhauled its F-gas rules through Regulation (EU) 2024/573, which sets a path to phase HFC supply out completely by 2050. It also extended bans on placing equipment that uses high-GWP refrigerants on the market, product group by product group. For example, from 2027, self-contained air conditioners and heat pumps under 12 kW can no longer use F-gases with a GWP of 150 or more. Companies exporting refrigeration or HVAC equipment, or pre-charged products, to the EU should look up the dates and GWP limits that apply to their products in Annex IV and plan redesigns ahead of those dates.
A Practical Transition Roadmap for SMEs
Step 1: Build a Refrigerant Inventory
For each unit, record the refrigerant type, charge size and annual top-up volume. Multiply the top-up volume by the GWP to get your leakage emissions.
Step 2: Tighten Leak Management
Regular inspections and leak detection cut emissions right away and reduce refrigerant purchases. It is the fastest way to reduce emissions without new capital spending.
Step 3: Set Replacement Priorities
Rank equipment for replacement by age, charge size and GWP. When switching to natural refrigerants, plan for ammonia's toxicity and CO2's high operating pressures in the safety design, and check the high-pressure gas permits that apply.
Step 4: Apply for Support and Turn Results into ESG Data
Prepare your project plan in time for the replacement program and the carbon-neutral equipment investment calls. Use before-and-after emissions results to answer customers' ESG data requests.
Get Ready with KITIM
A refrigerant transition doesn't end with one equipment swap. It runs from calculating emissions to applying for support and answering customer requests. KITIM offers one consulting package covering inventory-based emissions calculation, an application strategy for the 2027 replacement program, and responses to customers' ESG data requests. To be ready before the call is announced, contact KITIM for a consultation today.