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ARTICLE · 24 OCTOBER 2022

The Senate Ratifies The Kigali Amendment, Strengthening U.S. Commitment To Phase Down Hydrofluorocarbons

Principal features of the Kigali Amendment include an HFC phasedown mandate that is largely equivalent to the domestic process started by the American Innovation and Manufacturing Act of 2020.

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Ratification of the Kigali Amendment formally commits the U.S. to a global effort to significantly reduce production and use of HFCs and reinforces the aggressive domestic HFC phasedown begun last year by the AIM Act.

TAKEAWAYS

  • Principal features of the Kigali Amendment include an HFC phasedown mandate that is largely equivalent to the domestic process started by the American Innovation and Manufacturing Act of 2020.
  • The continued global HFC phasedown is expected to have a significant impact on a wide sector of businesses, including industries such as shipping, construction materials, supermarkets and data centers.
  • Although ratification is unlikely to change the EPA's recent HFC cap and trade program, impacted businesses may wish to act now to mitigate potential long-term economic consequences of the HFC phasedown.

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