China’s Ministry of Ecology and Environment (MEE) has issued a notice allocating 2026 quotas for the production, use and import of ozone-depleting substances (ODS) and hydrofluorocarbons (HFCs), completing the quota framework for the year.
In 2026, production quotas for ozone-depleting substances will continue to decline. Under the notice, total HCFC production quotas will be set at 151,411 tonnes, down from 163,573 tonnes in 2025. Within the total, the quota for HCFC-22 will fall to 146,063 tonnes, while HCFC-141b will be fully phased out, with its production quota reduced to zero.
HCFC-22 was once the dominant refrigerant in residential air conditioners, but is now used mainly for servicing existing units, with some volumes consumed as a fluorochemical feedstock. HCFC-141b, previously a key blowing agent in refrigerators and electric water heaters, has already been banned. The reductions in production quotas for both substances therefore follow the HCFC phase-down schedule set out under the Montreal Protocol.
By contrast, HFC production quotas for 2026 show a mixed pattern. Total quotas will rise to 797,845 tonnes, up 5,963 tonnes from 2025. Increases include 3,242 tonnes of HFC-134a, 2,918 tonnes of HFC-245fa, and 1,171 tonnes of HFC-32, while quotas for HFC-143a, HFC-227ea and HFC-152a are reduced by 1,255, 517 and 63 tonnes, respectively.
Among the listed HFCs, HFC-32 is the dominant refrigerant in China’s residential air-conditioning market, with industry estimates suggesting it is used in almost all domestically sold units. Prices for HFC-32 and other HFCs rose steadily in 2024 and 2025, tightening supply and pushing up costs for downstream manufacturers. The higher quota for 2026 is therefore aimed at easing supply constraints, stabilising prices and relieving cost pressures across the appliance sector.
HFC-245fa, once a widely used blowing agent in refrigerator insulation, has largely exited the sector as tighter environmental regulations have driven a return to cyclopentane-based foaming systems.
Industry sources say that in China’s domestic market, refrigerators still mainly use cyclopentane-based foaming systems combining cyclopentane, low-boiling agents (LBA), polyethers, and HFC-152a or HC-600a, while manufacturers supplying the European Union are increasingly adopting cyclopentane with low-thermal-conductivity polyethers. Some producers in the domestic market have also begun phasing out low-boiling agents in favor of the latter system. As a result, actual use of HFC-245fa in refrigerators has fallen sharply. The higher quota for the substance in 2026, however, reflects growing demand from new applications—most notably in heat-pump systems—where usage has expanded rapidly.