Source: CHEAA-run China Appliance magazine

Recently, the Ministry of Ecology and Environment, in collaboration with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce, and the General Administration of Customs, jointly issued the National Plan for China's Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer (2025–2030) (hereinafter referred to as the "National Plan").

According to the National Plan, starting January 1, 2026, the production of refrigerators and freezers using HFCs as refrigerants will be prohibited in the home appliance industry. Beginning January 1, 2029, the production of room air conditioners filled with refrigerants having a Global Warming Potential (GWP) value greater than 750 for domestic sale will be banned—excluding residential multi-split (heat pump) systems. The plan also encourages the use of natural refrigerants.

In summary, the National Plan outlines two main requirements for reducing HFCs in the home appliance sector: From January 1, 2029, the production of HFC-based refrigerant systems with a GWP above 750 for domestic sales will be prohibited. The use of natural refrigerants is strongly encouraged.

Regarding the ban on HFC refrigerants, it is necessary to review the current usage of HFCs in two major product categories: refrigerators and air conditioners.

In the case of refrigerators and freezers, over 95% of products in China have already switched to the environmentally friendly refrigerant R600a. This indicates that the sector has largely met the requirements outlined in the National Plan.

In the room air conditioner segment, the most commonly used refrigerant is R32, followed by R410A. According to data from China IoL.com, in 2024, R32-based models accounted for 70.9% of China's room air conditioner market, while R410A-based models accounted for 27.1%. Although both refrigerants fall under the category of HFCs, R32 has a GWP (Global Warming Potential) of approximately 675, whereas R410A has a GWP of 2088. Based on the requirements of the National Plan, starting from January 1, 2029, the use of R410A in room air conditioners intended for domestic sales will no longer be permitted.

Although R32 complies with the national plan for now, it still cannot avoid eventual phase-out. In fact, HFCs are currently in the freeze and reduction phase. According to the Kigali Amendment, China must freeze the production and consumption of HFCs at baseline levels starting in 2024, and then reduce them by 10% in 2029, 30% in 2035, 50% in 2040, and 80% by 2045. China Appliance magazine reporter learned that, the severe imbalance between supply and demand of R32—caused by its status during the freeze and reduction phase—has led to a sharp price increase. Moreover, judging from current price trends, there is still a high possibility that R32 prices will continue to rise. This has placed significant cost pressure on room air conditioner manufacturers.

Therefore, whether to meet compliance requirements or to manage costs, R32 is not the optimal solution for the room air conditioner industry.

In terms of encouraging the use of natural refrigerants, as previously mentioned, China's refrigerator and freezer industry has largely completed the transition to natural refrigerants. The room air conditioner industry in China has also identified a viable alternative—R290. It is learned that, during the phase-out of R22, China’s residential air conditioning industry, with a focus on long-term sustainability and development, became the first in the world to adopt R290—a refrigerant that is both ozone- and climate-friendly—as its replacement technology.

Encouragingly, with the support of the Ministry of Ecology and Environment, the China Household Electrical Appliances Association, and leading industry enterprises, China has accumulated extensive experience in various aspects related to R290—including safety, research and development, installation, maintenance, transportation, usage, standards, and market promotion.

In terms of market adoption, according to data from the China Household Electrical Appliances Association, by the end of 2024, the Chinese room air conditioner industry had cumulatively produced and sold over 10 million R290 air conditioning units. Among these, split-type units accounted for nearly 600,000 units. From a corporate perspective, Midea has launched 83 R290 air conditioner models across four major categories: portable air conditioners, split-type air conditioners, dehumidifiers, and heat pump water heaters. Haier has installed and sold nearly 200,000 units of R290 air conditioners in three categories globally.

Although the sales volume of 10 million units is still relatively modest compared to the room air conditioner's overall production capacity—exceeding 10 million units—the release of policies such as the National Plan signals a positive turning point for the broader adoption of R290 air conditioners. The future development of R290 air conditioning is full of promise and worth anticipating.