Managing F-gases in real estate sustainability strategies
January 27, 2025 | F-gases (fluorinated gases) are potent greenhouse gases commonly used in cooling systems, like VRF (Variable Refrigerant Flow) systems. They have a high Global Warming Potential (GWP), meaning they trap heat in the atmosphere much more effectively than CO2.
What are F-gases and why do they matter?
F-gases (fluorinated gases) are potent greenhouse gases commonly used in cooling systems, like VRF (Variable Refrigerant Flow) systems. They have a high Global Warming Potential (GWP), meaning they trap heat in the atmosphere much more effectively than CO2. For example, R410A, a common refrigerant, has a GWP of 2088—a significant contributor to climate change.
As ESG regulations tighten, managing F-gases is becoming essential for real estate investors. The Carbon Risk Real Estate Monitor (CRREM) now includes F-gases in its GHG (Greenhouse Gas) roadmaps, significantly raising sustainability standards. However, adoption among investors remains limited. This insight highlights why incorporating F-gases is a critical next step for real estate investors.
F-gases integrated in CRREM
CRREM’s framework integrates F-gases into its carbon reduction pathways. This means buildings can be evaluated not just on CO2 emissions but also on emissions from refrigerants. For hotels in the Netherlands, for instance, the maximum GHG intensity (including F-gases) by 2050 is 0.66 kgCO2/m².
Key implications:
F-gases can push assets over the GHG thresholds. This could make assets “stranded” earlier than expected unless emissions are controlled.
Leakage rates matter. For a VRF system with R410A, even a 5% annual leakage rate can significantly increase GHG intensity, negatively impacting CRREM performance.
Regulatory challenges:
European regulations are phasing out high-GWP F-gases:
Production bans: From 2025, certain refrigerants, including R410A, can no longer be used in new systems.
Refill restrictions: From 2026, systems can only be refilled with refrigerants that have a GWP under 2500. By 2032, recycled refrigerants above this threshold will also be banned.
For real estate investors, this means:
Higher costs for maintaining older systems.
Assets face an increased risk of becoming stranded if systems containing F-gases (such as heat pumps, cooling installations, and other HVAC systems) are not upgraded to comply with new standards.
Case study: Hotel
The example hotel provides a clear example of the risks:
System details: A VRF system with 630 kg of R410A.
Leakage impact: At a 5% leak rate, the system emits 10 kgCO2/m² annually. This increases the building’s GHG intensity to 37 kgCO2/m² in 2025 — well above CRREM targets.
Consequence: The “stranded year” for this hotel shifts forward by 2-4 years, highlighting the urgency to upgrade.
How can real estate managers address F-gases?
Monitor and reduce Leakage: Regular maintenance can lower leakage rates to the EU benchmark of 5%.
Switch to low-GWP refrigerants: Transition to refrigerants with a GWP under 150 to stay ahead of regulations.
Plan for system upgrades: Proactively replace high-GWP systems to avoid future penalties and costs.
Incorporate F-Gases into CRREM Analysis: Ensure that refrigerant data is included in GHG roadmaps to get a clear picture of asset performance.
How Cooltree helps
Cooltree supports ESG managers by:
Data integration: Seamlessly adding F-gas data to CRREM roadmaps.
Enhanced reporting: Enriching datasets to identify risks and opportunities.
Actionable insights: Providing tailored outputs to guide decarbonization strategies.
Take action today
F-gases are a growing focus in ESG reporting and regulatory compliance. Real estate investment managers can future-proof their portfolios by:
Staying updated on regulations.
Investing in sustainable heating and cooling technologies.
Integrated F-gasses in ESG analysis to optimize reporting and strategy.
To conclude this insight, we want to highlight that managing F-gases effectively is not just a regulatory necessity but a strategic opportunity to lead in sustainable real estate.
Want to know how we can help your business address F-gases? Get in touch at: info@cooltree.nl.