China Tightens HFC Oversight with New Directive, Locking in Quota System

China’s Ministry of Ecology and Environment issued Directive No. 8 of 2026, effective March 1, imposing full-chain traceability and quota-based controls on ozone-depleting substances and hydrofluorocarbons. The policy accelerates the phase-out of second-generation refrigerants: R-141b production quota was reduced to zero for 2026, while R-22 production quota was cut by 3,005 metric tons (a 2.02% reduction from 2025). For third-generation refrigerants, the total production quota for 2026 was set at 797,800 metric tons, a modest increase of 5,963 tons over the prior year, but the overall CO₂-equivalent ceiling remains fixed. Industry analysts noted that the directive signals a clear trajectory: second-generation refrigerants are being retired, third-generation supply is capped as a transitional solution, and fourth-generation low-GWP alternatives such as R-290, CO₂ and HFOs are positioned for future growth.