The Alliance for Responsible Atmospheric Policy (The Alliance) and The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) released their study: Economic Impact of Kigali Ratification & Implementation. According to AHRI, the study supports the ratification of the Kigali Amendment to the Montreal Protocol which calls for a phase down in the production and consumption of hydrofluorocarbons (HFCs) worldwide.
The institute claims the Kigali Amendment gives American companies an advantage in technology, manufacturing, and investment which will lead to job creation.
According to the study:
• 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%.
• Fluorocarbon-based manufacturing industries in the U.S. directly employ 589,000 Americans, with an industry-wide payroll of more than $39 billion per year. The fluorocarbon industry in the U.S. indirectly supports 494,000 American jobs with a $36 billion annual payroll.
• According to the analysis, the U.S. fluorocarbon using and producing industries contribute more than $205 billion annually in direct goods and services and provide employment to more than 2.5 million individuals and overall economic activity of $620 billion to the U.S. economy.
"U.S. ratification of the Kigali Amendment is good for American jobs, good for the economy, and crucial for maintaining U.S. leadership across the globe,” said John Hurst, chairman of The Alliance and vice president of Lennox International. "Over 30 countries have ratified the amendment. America cannot afford to be on the sideline. America must continue to lead."
"This study illustrates in a very concrete way the fact that U.S. ratification of the Kigali Amendment is good for American jobs, good for the economy, and crucial for maintaining U.S. leadership across the globe," said AHRI president and CEO Stephen Yurek. "It will help American companies capture a large portion of the projected $1 trillion global market for the next generation of innovative, energy efficient products and equipment."