The world is still combating illegal refrigerants

As the cost of regulated high-GWP (global warming potential) refrigerants continues to rise and supply diminishes, the illegal trade in these substances is becoming an increasingly pressing global issue. 

Regular SightGlass readers will have seen how smugglers exploit weaknesses in customs enforcement and bypass security measures, creating a grey market where refrigerants are sold at a fraction of their legal cost. 

This not only leads to significant economic losses but also poses serious environmental and health risks.

It is like a game of whack-a-mole as governments and international organisations work to address illegal refrigerants by intercepting shipments and dismantling smuggling networks – but progress is progress.

The EU takes aim with Operation Khione

A six-month operation aimed at disrupting the illegal trade in refrigerants, known as Operation Khione, has led to significant success in preventing smuggling efforts across the European Union and neighbouring countries.

Conducted between May and October 2024, the operation involved customs officers from 16 EU member states, alongside officials from Turkey and Ukraine. 

Named after the Greek goddess of snow, symbolising the coolants at the heart of the illegal trade, the six-month investigation resulted in the interception of over 400,000 tonnes of CO2-equivalent material.

This is roughly equivalent to 200 tonnes of R410A or 280 tonnes of R134a, preventing a market loss estimated at more than AU$7.3 million.

Key to its success was the identification and monitoring of suspicious refrigerant shipments by customs officers that were believed to be destined for the black market, leading to criminal proceedings being initiated in several countries, including Poland, Italy, Romania, Slovakia, France and the Czech Republic.

“Illegal trade in refrigerant gases not only undermines the EU’s green goals but also endangers public safety,” said Ville Itälä, Director-General of the European Anti-Fraud Office (OLAF).

He added that Operation Khione demonstrated the EU’s ability to “effectively disrupt this dangerous trade”.

Countering smuggling with sustainability

The EU’s crackdown on this illegal trade comes as part of its broader efforts to phase out high-GWP refrigerants under international agreements such as the F-gas Regulation and Kigali Amendment to the Montreal Protocol that collectively aim to cut emissions from these potent greenhouse gases by promoting the shift to lower-GWP alternatives.

As SightGlass has reported, in some markets the pressure on high-GWP imports for service purposes is prompting a return to the retrofit era.

One such alternative is R456A, a refrigerant compatible with existing systems that use R134a but with a significantly lower GWP, which could help reduce incentives for smuggling while advancing climate goals.

Poland Takes a Stand

Poland, in recent years, has emerged as a key entry point into the European Union for smuggled refrigerants, driven in part by its ageing vehicle fleet and the resulting high demand for substances like R134a.

As part of Operation Khione, Poland’s Customs and Tax Service (KAS) has intensified its efforts to tackle the smuggling of illegal refrigerants.

Targeting major border crossings, warehouses and other common storage points for illicit refrigerants before they are resold on the black market, officials conducted thorough inspections using specialised equipment, such as portable refrigerant identifiers.

Adopting this technology enabled officers to identify and intercept smuggled goods attempting to evade taxes and environmental regulations.

Poland’s efforts spanned key areas across the country, including Podkarpackie, Małopolskie, Świętokrzyskie, Lublin, and, notably, Mazovia, which received additional support from inspectors representing the European Anti-Fraud Office (OLAF) and the Provincial Environmental Protection Inspectorate in Warsaw.

Their coordinated efforts included the seizure of 115 tonnes of refrigerant, valued at around AU$8.1 million, along with gas tanks, empty containers, charging equipment, financial records, and vehicles tied to the smuggling networks. 

Also revealed by the operation were sophisticated tactics used by smugglers to avoid detection, including hidden vehicle compartments, the manipulation of goods’ paperwork and the illegal reloading or mixing of refrigerants to bypass import duties and environmental fees.

Nine individuals were detained and charged with various fiscal crimes, including the removal of customs security, the unauthorised transportation of waste or hazardous substances, and deliberate attempts to evade supervision procedures, all of which pose risks to human health and the environment. 

Investigations also revealed that many of these illegal refrigerants had been imported from outside the EU and were deliberately reloaded, mixed, or moved out of customs supervision to bypass taxes and environmental fees.

Operation Demeter – a global effort

The EU’s increasing efforts to combat the illegal trade in refrigerants are part of a wider international initiative. 

Similar operations, such as Operation Demeter, led by the World Customs Organisation (WCO), have recently been conducted worldwide, resulting in 99 seizures and the confiscation of nearly 350 tonnes of ozone-depleting substances (ODS).

Among the most frequently seized substances were HFCs such as R134a and R410A.

Launched by the WCO in 2009, Operation Demeter, its tenth such operation, is one of the most prominent customs-led initiatives focused on enforcing the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal.

Since 2019, it has also played a crucial role in implementing the Montreal Protocol and the Kigali Amendment.

Across seventeen countries, including Argentina, Sri Lanka, and North Macedonia, customs authorities reported significant confiscations of substances regulated under these international agreements; among them, Gambia, Bulgaria, and Italy stood out for the highest number of seizures.

In total, authorities seized 24,199kg of ODS and 11,620 pieces of equipment containing or relying on these banned and highly environmentally harmful products.

The majority of these were intercepted at inland and border checkpoints, as well as at seaports, with additional confiscations occurring at the premises of traders and sellers, highlighting the widespread and persistent nature of the illegal refrigerant trade.

Discussing Operation Demeter, WCO Deputy Secretary-General Ricardo Treviño Chapa called for heightened vigilance in the fight against environmental crime.

“It is imperative to redouble our efforts to ensure a cleaner, safer, and more sustainable world,” he said.

A complex challenge ahead

Operations Khione and Demeter demonstrate the substantial global efforts required to dismantle smuggling networks and protect the integrity of refrigerant supply chains.

They also highlight the ongoing challenge of adapting to the ever-changing methods of illegal refrigerant trafficking, which, by reducing market incentives for adopting lower-GWP solutions, continue to hinder the transition to less harmful alternatives.