Govt to tighten refrigerant norms: What it means for manufacturers and consumers

New Delhi: The government is tightening refrigerant norms by aligning regulations with international standards to phase out the use of global-warming-potential (GWP) cooling gases, according to two people familiar with the matter.

The new rules will cover refrigerants used in refrigeration, air conditioners, solvents and aerosols to align with global environmental commitments. These will require manufacturers to adopt alternative refrigerants and comply with updated packaging and safety standards, the people said.

The Bureau of Indian Standards (BIS), under the ministry of consumer affairs, is revising norms to eliminate high-GWP refrigerants, improve quality and enhance regulatory alignment.

Also read | Substandard imports: Govt files cases against goods worth ₹206.62 crore

The move aims to prepare manufacturers for the 2030 phase-out deadline for hydrochlorofluorocarbon (HCFC) R-22. Non-compliance will attract penalties, licence cancellations and product seizures.

With the rollout of the new standards, all appliances using refrigerants will have to be free of HCFCs by 2030, the second person said, adding that the new standards will come into force in the coming months.

The changes come when India’s cooling appliance market is expanding rapidly. The refrigerator industry, valued at $5.4 billion in 2024, is projected to grow to $12.09 billion by 2033, at a compounded annual growth rate (CAGR) of 9.37%, while the air conditioner market, which stood at $3.38 billion in 2023, is expected to reach $11.69 billion by 2032 at a CAGR of 14.78%.

Experts say the new norms will impact both manufacturers and consumers. Manufacturers will need to invest in research, reconfigure production lines and adopt newer refrigerants.

The transition is expected to bring long-term benefits, however, including improved energy efficiency, lower environmental impact and potential reductions in electricity costs due to the enhanced performance of newer refrigerants, said Ashim Sanyal, chief operating officer of Consumer Voice, a consumer advocacy organization.

However, according to Sanyal, this transition is expected to increase production costs, potentially leading to higher prices for refrigerators and air-conditioning units.

B. Thiagarajan, managing director of Blue Star Ltd, a leading air-conditioner maker, said, “In my opinion, while remaining committed to Kigali agreement, the top priority is to scale the production of HFCs in order to meet the growing demand and keep the prices under check. Otherwise, the consumers, primarily those belonging to the middle class will be burdened with higher costs."

"At the same time, we need to place greater emphasis on manufacturing in India near zero global warming refrigerants, as and when the phase down of HFCs begin. I also believe that India has the capability to develop such refrigerants,” said Thiagarajan.

The Kigali Agreement, signed in 2016, is a global deal to gradually reduce the use of HFCs—chemicals used in air conditioners and refrigerators—that harm the environment by causing global warming.

Queries sent to the ministry of consumer affairs remained unanswered till press time.

PLI push for manufacturers

The policy shift coincides with India’s ramp-up in compressor production under the production-linked incentive (PLI) scheme for white goods. Once heavily imported, compressor production is expected to reach 8 million units by 2028-29, following three PLI phases rolled out between April 2021 and January 2024.

Also read | Govt selects 24 companies for ₹3,516-crore investment in 3rd round of white goods PLI scheme

A compressor is a key component in refrigeration and air conditioning systems that increases the pressure of the refrigerant gas, allowing it to circulate and transfer heat efficiently.

New refrigerant alternatives include hydrofluoroolefins (HFOs), natural refrigerants and low-GWP HFCs like R-32, which is replacing R-410A in air conditioners. Refrigerators and cooling systems are shifting to R-290 and R-600a due to their lower environmental impact.

“India is demonstrating strong leadership in aligning its refrigerant regulations with international standards by phasing down high-GWP gases, in line with its commitment under the Kigali Amendment to the Montreal Protocol,” said Shaurya Anand, research associate in earth science and climate change at The Energy and Resources Institute (TERI).

“These efforts are reinforced by the Indian Cooling Action Plan, which promotes sectoral integration, energy-efficient technologies, and responsible refrigerant management. Collectively, these initiatives position India at the forefront of sustainable cooling, balancing environmental responsibility with economic growth and technological progress,” said Anand.

Also read | Hot summer forecast to boost consumer durables, beverage sales in India