Circular economy

The circular economy plays a central role in the European Green Deal. The European Union has committed to reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, as outlined in the Fit for 55 package [1].

A wide range of tools and policy measures have been introduced to support these targets [2]. The overarching objective is to ensure that the EU becomes climate-neutral by 2050. To guide sustainable investment and accelerate emission reductions, the EU has also established the EU Taxonomy for Sustainable Activities. This classification system helps direct financial flows transparently towards activities that support environmental and climate goals [3]. One of the most important solutions in achieving these objectives is the transition to a circular economy.

What does circular economy mean?

In simple terms: more from less. In practice, this means making the most efficient use of existing raw materials instead of relying on the continuous production of new ones. According to the European Commission, a circular economy is “an economic system in which waste generation is minimized, the value and lifetime of products and materials are maximized, and when a product reaches the end of its lifecycle, it is returned to circulation through reuse or recycling.”

Circular economy is still in its early stages globally

According to the Circularity Gap Report by Circle Economy, only 8.6% of the global economy operated according to circular economy principles in 2020. This means that fewer than one in ten products return to use either directly or through recycling. [4]The Finnish innovation fund Sitra [5] has identified several key circular economy business models that support the transition to a more sustainable economy:

Sharing platforms
Circular supply chains
Product as a service
Product life extension
Recovery and recycling

Circular economy and sustainable development in practice

The circular economy works best as a comprehensive value chain, where different business models are connected and support one another. F-gases (refrigerants) provide a clear example of how circular economy principles can be applied in practice to reduce emissions and improve resource efficiency:

Step 1. Reducing the production and import of new products

Natural resources are limited, and continuous extraction leads to significant emissions and environmental impacts. Reclaimed refrigerant has a carbon footprint of approximately 0.01 kg CO₂-eq per kilogram produced, compared to up to 17.0681 kg CO₂-eq for newly manufactured refrigerant (average 11.21 kg). Using reclaimed refrigerants enables a form of urban mining, where valuable materials are recovered and reused instead of relying on traditional resource extraction.

Step 2. Extending the product lifecycle

Regular maintenance and continuous quality monitoring help extend the lifecycle of refrigerants. Proper servicing also prevents contamination, ensuring that foreign components do not enter the refrigerant and compromise system performance.

Step 3. Recovery and recycling

Proper recovery of refrigerants ensures that valuable raw materials remain available for reuse, supporting the 1. goal of reducing the need for newly produced refrigerants. At the same time, it prevents refrigerants from being unnecessarily destroyed through incineration.

Step 4. Product as a service and a sharing platform

Once refrigerant has been reclaimed to meet new product specifications, it can be offered as part of a service-based model rather than simply sold as a product. In a service leasing model, the refrigerant is managed throughout its lifecycle, ensuring that it is recovered and returned to circulation at the end of the agreement. In addition, digital platforms for F-gases, such as Retradeables, enable recovered refrigerants to be offered on the market in a transparent and traceable way, further supporting circular economy principles.

Carbon footprint: virgin refrigerant vs reclaimed refrigerant

The production of new refrigerants generates significant upstream emissions, ranging from 5 to 16.7 kg CO₂-eq per kilogram produced. For example, the “no credit” value for the HFC refrigerant R134a is 5 kg CO₂-eq, while the corresponding value for the HFO refrigerant R1234yf is 13.7 kg CO₂-eq. The highest value is associated with the refrigerant blend R404A, with 16.7 kg CO₂-eq per kilogram produced. According to available sources, emissions related to AHRI-700 laboratory analysis are not included in these figures. Transporting refrigerants by sea from the United States to Europe adds approximately 0.3681 kg CO₂-eq per kilogram. In total, the combined emissions from production and transport of virgin refrigerants range between 5.3681 and 17.0681 kg CO₂-eq per kilogram, with an average of 11.21 kg CO₂-eq per kilogram for HFC refrigerants.

These calculations do not include emissions caused by refrigerant destruction or leakage. According to the Intergovernmental Panel on Climate Change (IPCC), F-gas leaks accounted for around 3% of total greenhouse gas emissions in the EU in 2019 (approximately 80 Mt CO₂-eq) and 3% in Finland (approximately 1.5 Mt CO₂-eq). When refrigerants are destroyed, additional energy is required for the process, resulting in approximately 1.5 kg CO₂-eq per kilogram of refrigerant destroyed.

The reclaimed refrigerants we sell are recovered as raw materials in the Nordic region and restored to new product specifications in Helsinki, in accordance with AHRI-700 and ISO 11650-1999 standards.

Our reclaimed refrigerants have a carbon footprint more than 40 times lower than comparable virgin refrigerants. You can read more about this in our life cycle assessment (LCA) study

Nearly all refrigerants can be recycled. Refrigerant reclamation means restoring recovered refrigerant to a condition equivalent to new product specifications. A refrigerant can be classified as reclaimed when it has undergone a purification process using equipment compliant with AHRI-740 and ISO 11650 standards, followed by laboratory analysis confirming that it meets the AHRI-700 quality standard.

Eco Scandic is also committed to the European Fluorocarbons Technical Committee (EFCTC) program.

How can we help?

Eco Scandic is the first company in the Nordic region focused on refrigerant reclamation, restoring refrigerants to virgin-grade quality through advanced recycling.

Our mission is to provide sustainable circular economy solutions that help customers maximize the value of their resources by extending the lifecycle of refrigeration systems while reducing emissions.