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R32 / refrigerant phase-down
What it is
The Kigali Amendment phases down high global-warming-potential hydrofluorocarbons on a defined schedule, with India's reduction steps beginning later than developed countries. R32 is a lower-GWP HFC replacing R410A in air conditioning
HFO refrigerants sit further out with much lower GWP but higher cost and patent constraints
Impact on industries
- Phase-downs force product transitions, and each transition is an opportunity for producers with the chemistry to supply the replacement
- India's later phase-down schedule gives domestic producers a longer window on existing HFC capacity than developed-market peers
- Assets built for phased-down molecules face stranding on a known timetable, so capex must be recovered before the step-down
- Next-generation HFO chemistry is patent-protected by global majors, though AC demand growth partly offsets the per-unit reduction