Greenhouse Gases Black Market Grows in Europe: Multi-Million Euro Trade Reported

Greenhouse gases black market has been reported in Europe as of Wednesday. August 4. The market involves an illegal multi-million Euro trade of the notorious global warming-triggering air particles that has been transpiring for years. With this, the London-based Environmental Investigation Agency (EIA) is urging the European Public Prosecutor's Office (EPPO) to investigate the matter.

In particular, the EIA requests EPPO to clamp down on the climate-damaging hydrofluorocarbons in the continent, with Romania to be allegedly the major gateway for the greenhouse gas smuggling. The environmental-harming hydrofluorocarbons is known for its industrial use as a refrigerant gas, which is mainly used in air conditioning units and supermarket cooling units.

The so-called hydrofluorocarbon black market reportedly started when the European Union (EU) cut its supply by almost half in 2018, causing a price hike and leading to the emergence of the illegal trade across Europe. An EIA-led investigation claims loopholes in existing regulations and the system are the cause of the black market's persistence until today.

Hydrofluorocarbons, along with carbon dioxide, methane, and nitrous oxide, are the main greenhouse gases that trap heat in the atmosphere, speeding up the natural phenomenon of greenhouse effect which warms up the planet. In recent years, these gases have been the subject of various measures to address the ongoing climate crisis.

Greenhouses Gases Black Market

According to Energy Live News, the EU measure involved a gradual phase down based on a quota system through its F-Gas Regulation with the aim of limiting the volume of greenhouse gases on the market. Specifically, the mandate cuts the supply by 37% which has apparently affected concerned industries utilizing the gases.

The UK-based news outlet stated an EIA investigation reveals that smugglers are exploiting the said loopholes in the F-Gas Regulation and customers procedures; which allegedly involves paying off corrupt officials and altering tax border controls.

Multi-Million Euro Trade

EIA Senior Climate Campaigner, Fionnuala Walravens, in spite of providing Romanian law enforcement evidence of the smuggling in the past 12 months, no action has been taken, as cited by Energy Live News.

In addition, the number of illegal hydrofluorocarbons smuggled into Europe is reportedly equivalent from 20% to 30% of the legal trade. This amount has cost 77 million and 64.3 million Euros in value added tax (VAT) and customs duties.

In November 2021, the BBC reported polluting greenhouse gases are being sold online and smuggled into the United Kingdom.

In its own investigation, the UK media agency also uncovered a black market from Eastern Europe. The probe found out that hydrofluorocarbons, also called HFCs, are being advertised and sold illegally through social media.

Hydrofluorocarbons

Aside from air conditioning, the United States Environmental Protection Agency (EPA) states that federal agencies use HFCs for a number of usage, including building insulation, fire extinguishing systems, and aerosols.

However, the EPA says HFCs have a high global warming potential (GWP). Concerns regarding its use and growing threat stems from the economic growth that demands for new equipment are evident in the US.