China's 2026 Refrigerant Quota Policy: Accelerated Phase-out of R22 and Strategic Growth of HFCs

In a decisive move to advance its "Dual Carbon" goals and align with global environmental protocols, China's Ministry of Ecology and Environment (MEE) has unveiled the 2026 production and domestic use quota plan for refrigerants. The policy solidifies a clear industry trajectory of "total volume control and structural optimization," marking a critical year where the phase-out of ozone-depleting substances accelerates, making way for newer, more climate-friendly alternatives.

Accelerated Exit of Second-Generation Refrigerants (HCFCs)​

Fulfilling its commitments under the Montreal Protocol, China has set the 2026 total production quota for second-generation refrigerants (HCFCs) at 151,400 tons, a reduction of 12,100 tons from 2025. A significant highlight is the complete elimination of the quota for R141b. The quota for R22, once the industry's mainstream refrigerant for air conditioning, is set at 146,100 tons for production (down 2.02% year-on-year) and 77,900 tons for domestic use (a sharper cut of 3.60%). This systematic reduction underscores the government's commitment to phasing out HCFCs, compelling the market to transition towards sustainable options.

Steady Growth and Structural Adjustments for Third-Generation Refrigerants (HFCs)​

The quota management system for Hydrofluorocarbons (HFCs), implemented since 2024, continues to bring stability to the sector. The total production quota for 2026 is 797,800 tons, reflecting a modest increase of approximately 5,963 tons. Key varieties see targeted growth:

• R32: Production quota of 281,500 tons (+1,171 tons).
• R134a: Production quota of 211,500 tons (+3,242 tons).
• R125: Production quota of 167,600 tons (+351 tons).

This calibrated growth ensures supply security for essential applications in air conditioning, refrigeration, and automotive sectors while adhering to overall emission controls.