We successfully represented Darment, a Finnish company active in the hydrofluorocarbons (HFCs) market as a producer and an importer, in an annulment of a decision of the European Commission.

Quotas for greenhouse gases in focus

In 2017 two Estonian companies wanted to authorise Darment to use their quotas for placing of HFC’s in the EU market. However, during the registration of the transfer of quota in the HFC Register, the companies mistakenly used a form that was intended for transfer of quota for pre-filled equipment only.

The European Commission refused to readjust the data in the HFC Register. While the Commission promised to investigate the circumstances, it in reality only looked at the forms that were submitted in the HFC Register and penalised Darment for using an excess amount of bulk HFC’s in 2018 by refusing to allocate any quota to it for 2018 and 2019, and decrease the quota in 2020.

EU Court decided in our favour

The EU General Court in Luxembourg annuled the Commission decision In May 2020. The court relied inter alia on the EU Charter of Fundamental Rights and the principle of good administration stating that these preclude the European Commission from imposing a penalty on Darment.

Our client team

Our client team was led by senior associate Maria Pihlak and partner Carri Ginter, who were supported by senior associate Triin Toom.