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Industry groups have welcomed the federal government's decision to deliver an 85 per cent phasedown of hydrofluorocarbons (HFCs) by 2036.

The phasedown will reduce HFC emissions by up to 80 Mt CO2-e by 2030 and is set to commence in January, 2018.

Moreover, Australia's announcement is likely to be supported by a global phasedown currently being negotiated under the Montreal Protocol. The global agreement should be finalised later this year.

Environment Minister, Greg Hunt, disclosed details of the HFC phasedown while announcing the outcomes of the federal government's review of the Ozone Protection and Synthetic Greehouse Gas Program.

Known as the ozone review, the government announced a range of measures that are part of Australia's commitment to reduce greenhouse gas emissions by 26-28 per cent below 2005 levels by 2030.

Hunt said the legislation has already contributed to a reduction in Australia's greenhouse gas emissions of about 40 million tonnes of CO2-e since its inception in 1989. The legislation was last reviewed in 2001.

“By working together, the government and industry have reduced annual greenhouse emissions from CFCs, HCFCs and HFCs from over 100 million tonnes in 1989 to under 12 million tonnes now,” he said.

“Australia's HFC phasedown will provide certainty for business and ensure Australia is well placed to meet any future international obligations to phasedown hydrofluorocarbons.”

Hunt said the Emissions Reduction Fund has already contracted 143 million tonnes of emissions reductions at an average price of $12.10 per tonne.

Moreover, he said the Renewable Energy Target (RET) will see a doubling of large scale renewable energy by 2020. “The Coalition will also invest $1 billion in the new Clean Energy Innovation Fund,” Hunt added.

A key objective of the review was to reduce the regulatory burden on business and measures announced as part of the review will reduce costs by $1.2 million annually.

This includes increasing the low volume import exemption threshold for equipment imports from 10kg to 25kg, reducing total licence numbers by one third. Licence holders can renew their licence rather than applying for a new one, saving businesses $580,000 annually.

A waiver of small levy debts below $330, will reduce uneconomic transactions by 94 per cent from 2750 to 150 annually. A number of non-regulatory measures were also announced.

For example, the Department of the Environment will work with business to develop information to better inform equipment owners of the benefits of ensuring proper installation of new equipment and regular equipment maintenance.

This will achieve substantial emissions savings through reduced gas leakage and lower electricity use. Businesses will benefit through reduced electricity costs, reduced replacement costs for gas leakage and longer equipment life.

The Department of the Environment will also engage with state regulators and the business community to examine how respective refrigeration and air conditioning regulatory arrangements can work in better synergy.

While legislative amendments won't commence until 2018, some measures can be introduced more quickly such as changes to the low volume import exemptions and licensing changes.

The government will also enable provisions for future bans on the import of new equipment containing high global warming potential (GWP) HFCs.

Domestic and automotive air conditioners containing high GWP HFCs are equipment that will be considered in the future.

This will be based on an assessment of the Australian market, particularly whether alternative equipment is available.

Further, compliance provisions of the legislation will be strengthened to support emission reduction including new offence provisions, increased penalty amounts, provision for suspension of licences and publishing of compliance actions.

More detailed information about the outcomes of the review will be announced shortly.

A long list of industry groups praised the government for the review outcomes including the Air Conditioning and Refrigeration Equipment Manufacturers Association of Australia (AREMA).

The president of AREMA, Mark Padwick, said refrigeration and air conditioner manufacturers have to contend with a range of issues when selecting which refrigerants to use.

“Not only do they want to choose refrigerants with low environmental impact if released, they need to consider safety for the consumer, energy efficiency, cost, suitability and a range of other considerations," he said.

“A HFC phasedown provides industry with the long-term certainty they need to plan for and invest in the new technologies we will need.

“Working with industry to lay out the roadmap for future technology choices, the government is enabling industry to continue to provide the equipment and services Australia needs while continuing to reduce greenhouse gas emissions."

Changes to the ozone protection legislation will accelerate changes to automotive air conditioning systems, according to the Automotive Air Conditioning, Electrical and Cooling Technicians of Australasia (VASA).

“The phasedown will accelerate the uptake of R1234yf,” a VASA spokesperson said.

"The federal government will consider regulating to ensure the existing industry standard refrigerant, R134a, is phased out of use in new vehicles over the next few years.

"The HFC phasedown will accelerate, and eventually mandate, the switch to low GWP refrigerants in the air conditioning systems of new vehicles.

"In fact a growing number of vehicles imported to Australia from markets where a phasedown is in place are already on Australian roads and the end of local car manufacturing in 2017 will add momentum to the uptake."

Refrigerants Australia executive director, Greg Picker, said industry actively supports a phasedown of the GWP of HFC refrigerants over the next two decades.

"This announcement guarantees improved environmental outcomes while also giving industry long-term certainty," he said.

By taking early action, the Australian Institute of Refrigeration, Air Conditioning and Heating (AIRAH) CEO, Tony Gleeson, said Australia will be a world leader in reducing HFC emissions.

“We see the HFC phasedown as completely congruent with our strategic themes of HVACR sustainability, compliance, innovation and research, and the need to transition to next-generation refrigerants,” he said.

The Air conditioning and Mechanical Contractors Association (AMCA) executive director, Sumit Oberoi, said the success of the ozone legislation in achieving the phase out of HCFCs ahead of schedule can be largely attributed to the cooperative relationship shared by industry and government.

“That experience gives us confidence that the phasedown of HFCs will be managed in a way that allows industry to plan and develop new solutions that will allow them to continue to provide the equipment and services Australia needs while reducing greenhouse gas emissions,” he said.

“We commend government on taking leadership in the area of HFC emissions reductions, and look forward to working with the Department as the measures are developed and implemented.”

AIRAH government relations manager, Phil Wilkinson, said the announcement aligns perfectly with PRIME, an industry initiative to transition to a low emissions future.

“It is also encouraging to see a focus on energy efficiency in the announcement,” he said.

Australia is working to achieve a 40 per cent increase in energy efficiency by 2030 as part of the National Energy Productivity Plan.

A special feature on the review appears in the August edition of CCN Magazine.