Tell Washington Lawmakers:
Ratify the Kigali Amendment

America Must Lead!

The Kigali Amendment will create American jobs, boost our economy, and help American companies capture global market share.

What is the Kigali Amendment?

The Kigali Amendment is part of a global treaty called the Montreal Protocol, a Reagan-era environmental policy. The Kigali Amendment seeks to phase down hydrofluorocarbons (HFCs) and phase in the next generation of fluorocarbon technologies, to be used in products like refrigerants, insulation, water heaters, air conditioning, aerosols, and health and safety-regulated products. More than thirty countries have already ratified the amendment, but the United States has not. By ratifying the amendment, the U.S. would give an enormous global advantage to American companies that have already invested in these next-gen technologies. U.S. ratification means more American jobs, more exports, and a significant portion of the $1 trillion global market demand for fluorinated products.

Get the Facts

The Kigali Amendment will create 33,000 American jobs by 2027, and will generate $3.0 billion in additional labor income.

The Kigali Amendment will increase American HVACR equipment exports by $5 billion and net fluorocarbon exports by $1 billion.

Five U.S. presidents from both parties have supported the Montreal Protocol and its subsequent amendments.

The Kigali Amendment will result in an HFC phase down of about 40% by 2024 and double-digit growth of HFOs over the next five years. 

FAQs

Is the Kigali Amendment an Obama-era climate policy?

No. The Montreal Protocol was first negotiated during the Reagan administration, and first amended in the Bush 41 administration. Furthermore, the policy discussion surrounding next generation technologies started in the Bush 43 administration. There have been four previous amendments to the Montreal Protocol, negotiated by both Republican and Democratic administrations, and ratified by both Republican and Democratic U.S. Senate majorities.

How will the Kigali Amendment affect the American economy?

The Kigali Amendment gives American companies an advantage in technology, manufacturing, and investment which will lead to job creation. It will both strengthen America’s exports and weaken the market for imported products, while enabling U.S. technology to continue its world leadership role.

The Kigali amendment is projected to increase U.S. manufacturing jobs by 33,000 by 2027, increase exports by $5 billion, reduce imports by nearly $7 billion, and improve the HVACR balance of trade.

With Kigali, U.S. exports will outperform, increasing U.S. share of global market from 7.2% to 9.0%.

Without Kigali ratification, growth opportunities will be lost, along with the jobs to support that growth; the trade deficit will grow, and the U.S. share of global export markets will decline.

How does the Kigali Amendment protect consumer costs?

  • During technology transitions, manufacturers improve their products’ energy efficiency, which in many cases, drives consumer costs down.
  • The Kigali Amendment phases down the use of HFCs, which currently contribute less than 1% to the cost of refrigeration and air conditioning systems. Consequently, the cost of substitute refrigerants will be a very small portion of the overall cost of equipment.
  • In commercial air conditioning and refrigeration, new product designs also have lower leak rates, reducing the impact on businesses and consumers. New systems can cost approximately 10% more than older systems, but their energy savings typically pay for themselves in two to five years. As such, the new systems have a lower net cost to building owners.
  • Without the Kigali Amendment, a patchwork of state regulations could emerge, making the transition more complex, duplicative, and costly for manufacturers and consumers alike. Kigali achieves the same result in a more systematic and gradual approach.
  • Finally, the transition from HFCs is a phase-down rather than a phase-out, and does not impact existing equipment. Existing equipment can continue to be serviced with existing fluorocarbons and won’t need to be replaced before the end of its useful life.

Why is ratification of the Kigali amendment urgent?

U.S. industry is in heated competition with industries from Asia and Europe, who would like to push alternative technologies.

All other developed countries have adopted HFC control programs that are consistent with or, in some cases, even more stringent than Kigali. But, not the United States.

Luckily, American manufacturers have invested hundreds of billions of dollars to innovate and commercialize next generation products, in anticipation of this trend and new market demands.

In developing countries, demand for HVACR products that use alternative technologies is about to take giant leaps, with the projected global market for these technologies over the next decade to be more than $1 trillion.

The urgency is to ensure that American businesses and technologies capture as much of the global market as possible.

Who supports the Kigali Amendment?

American manufacturers support the Kigali Amendment, because of the economic benefits it will bring to the United States. In addition to American manufacturers, business groups including the U.S. Chamber of Commerce, National Association of Manufacturers, and Business Roundtable all support ratification of the Kigali Amendment. Over thirty countries have ratified the amendment. America cannot afford to be on the sideline. America must continue to lead. Ratifying the Kigali Amendment will also prevent a patchwork of regulatory actions that will burden U.S. businesses.

In addition to U.S. industry support, both Republicans and Democrats recognize the benefits of global refrigerant policies outlined in the Kigali Amendment, and have for more than 30 years. Five U.S. presidents from both parties have supported the policies outlined in the Montreal Protocol, first negotiated during the Reagan Administration in 1987, which has helped keep the U.S. a global leader in HVACR technologies.

What needs to happen for the Kigali Amendment to be implemented?

The President needs to send the Kigali Amendment to the Senate for a resolution of ratification, by which the Senate formally gives its advice and consent by a two-thirds vote, empowering the President to proceed with ratification.

Kigali Amendment in the news

gop senators push trump to submit POLLUTION treaty amendment for senate approval

A group of Republicans senators is pushing President Trump to let them approve a treaty amendment meant to cut emissions of certain greenhouse gases. [...] The 13 GOP senators, led by John Kennedy (La.) and Susan Collins (Maine), said the amendment would help domestic companies by leveling the playing field worldwide and giving them long-term certainty on what chemicals to use going forward.

U.S. CONSERVATIVE GROUPS BACK KIGALI

A coalition of US conservative groups have added their voices to calls for president Donald Trump to ensure the US backs the Kigali Amendment to phase down HFC refrigerants. In a joint letter to the US president, the Americans for Tax Reform, the American Council for Capital Formation and FreedomWorks maintains that US failure to ratify the agreement will restrict US manufacturers “in their ability to sell into foreign markets at the cost of jobs and wealth”.

HVAC&R firms urge Trump to refer Kigali Amendment to Senate

In a letter on May 18 to President Donald Trump – and copied to Secretary of State Mike Pompeo – 32 top executives of HVAC&R companies urged that he submit the Kigali Amendment to the Montreal Protocol to the U.S. Senate for ratification. The Kigali Amendment, which calls for a global phase-down of HFCs, has so far been ratified by 35 of 197 signatory nations, and will go into effect for ratified nations on January 1, 2019.  The companies represented in the letter include Hillphoenix, Danfoss North America, Emerson, Johnson Controls, Lennox International and Structural Concepts.


US industry urges Trump to back Kigali

Thirty-two leading US air conditioning and refrigeration companies have signed a letter to president Trump urging him to ratify the Kigali Amendment. The letter urges president Trump to act: “On behalf of the 589,000 Americans currently employed in our industries, we urge you to send the Kigali Amendment to the United States Senate for ratification. It is our goal to protect and create American jobs, a goal that we know you share. We look forward to working together to achieve this goal.”

 

A CLIMATE POLICY EVEN Trump CAN SUPPORT? 

Last week, 34 executives from the heating, ventilation, air-conditioning and refrigeration industries wrote a letter to Mr. Trump urging him to submit the treaty for ratification. [...] Ratifying the treaty, they said, would increase American exports by $5 billion and lead to 33,000 new manufacturing jobs. If the United States doesn’t ratify the treaty, they wrote, countries like China will have an advantage in selling cleaner technologies to the rest of the world. “We believe the Kigali Amendment represents a chance to put America first,” the executives wrote.

This argument is gaining favor among conservatives.


US expects $12.5bn Kigali trade boost

It is estimated that Kigali ratification would also add $5bn per year to the value of US exports and reduce imports to the tune of $6.5bn per year by 2027. Adding in the impact of fluorocarbon manufacture, the US trade balance would improve by more than $12.5bn per year.

Kigali ratification is also expected to add an additional 33,000 jobs by 2027. Adding in the indirect and induced effects of ratification, the report estimates the number of additional jobs would rise to 150,000.

Businesses start push to convince Trump not to leave lesser-known Kigali climate deal

“With Kigali, U.S. exports will outperform, increasing U.S. share of global market” from 7.2 percent to 9.0 percent. Without the agreement, the U.S. export market will shrink, dwindling to just 6.2 percent, according to the report.

© 2018 The Alliance for Responsible Atmospheric Policy