Refrigerants Australia executive director, Greg Picker, explains how the government’s 2035 climate target and net zero plan are a lost opportunity and costly mistake for industry, consumers and the environment.
The Government announced its 2035 targets, net zero plan and sector specific plans with great fanfare just a few weeks ago. It has been hugely controversial politically since then.
But it isn’t just all big picture politics - those of us interested in refrigerants waited with a sense of expectation about what would be contained in those plans.
There was concern that perhaps the Government would make a poor decision and attempt something highly ambitious, but impracticable and costly.
We have seen examples of this in left-leaning governments around the world – where in the tussle between practicality and ambition, ambition prevails but industry is left struggling to meet those lofty, but impractical, goals.
There was also hope that the Government would seize the opportunities available in advancing policy and programs on refrigerant management: after all global studies of activities to reduce greenhouse gas emissions typically identify better refrigerant management programs as among the most cost-effective measures available.
It’s not like the Government does not know what to do.
Industry has been talking to Government for years about ways to reduce emissions and improve our industry’s performance while saving consumers money.
Ideas floated include everything from putting in place GWP limits on the use of refrigerant in specific equipment types to improving licensing for tradespeople and enhancing end-of-life action.
While we might disagree on some details, we all agree more can – and should – be done.
So, what did we get in the net zero plans? Nothing. A continuation of the HFC phase down as already legislated and well-known to the industry. There is nothing new.
One might say this is good news and make the argument that industry benefits when it does not suffer from additional burdens from Government.
But, as Environment Minister Murray Watt (who is responsible for refrigerant policy) stated on the ABC’s Insiders program on November 2: “the more we delay [in taking action], the higher the cost will be.”
Those comments are particularly astute for the refrigerant sector - without action to better manage refrigerants - the cost of the phase down will be higher as the transition is delayed and industry standards do not improve, the end result is higher rate of emissions.
Industry has been warning Government that failure to take action to accelerate the HFC phase down with GWP limits on refrigerants in new equipment are leading to substantial price increases and potentially refrigerant shortages.
Industry disruption costs everyone – industry and consumers.
There are also higher environmental costs by delaying action. As the HFC phase down bites the refrigerant bank shrinks over time in greenhouse terms. But emissions are still occurring and delays mean the opportunity to reduce emissions is curtailed.
Let me give a practical example – if we can stop a single kg of R404a from going to the atmosphere today that reduces emissions by the equivalent of 4 tonnes of carbon dioxide. But if we wait and only act next year, we may be preventing a kg of the R404a replacements R448A/R449A from going to the atmosphere.
This is useful, as it prevents the equivalent of 1.4 tonnes of carbon dioxide going to air. But wouldn’t it be great if we could manage to stop emissions today and tomorrow?
The lack of Government action to take sensible, practical action on refrigerants in its Net Zero planning continues a long period of government abandonment of sensible policy development on refrigerants. As a result of this stunning lack of ambition - industry, consumers and the environment will pay. Net Zero is really Zero Ambition.