Hydrofluorocarbon HFC phase down HFC phasedown HFC phasedown

Hydrofluorocarbon (HFC) phase down

HFC phase-down • HFC phase-down under the Montreal Protocol • HFC phase-down in Australia • What does it mean for Australia? • Equipment maintenance

HFC phase-down • Synthetic Greenhouse Gases • Extinguishing Agents Examples: – FM-200, FE 13, FE 25, FE 36, Halotron II • High global warming potential

Montreal Protocol-Kigali Amendment • HFC phase-down agreed in Kigali in October 2016 • Australia fully supported the phase-down and played a key role • Will reduce global emissions for 70 billion tonnes CO 2 e in the period to 2050 • Equivalent to 16 months of total greenhouse gas emissions

Montreal Protocol-Kigali Amendment • Agreement strongly supported by governments and industry o All 197 Montreal Protocol parties are committed to the phase-down o Proven mechanism o Long term certainty o Financial and technical support for developing countries

Montreal Protocol • Phasedown through import and manufacturing restrictions • Developed country phase-down o Starting point (baseline) average of 100% HFC imports between 2011 -13 and 15% of HCFC baseline o 10% reduction from 2019 o 40% reduction from 2024 o 70% reduction from 2029 o 80% reduction from 2034 o 85% reduction from 2036

Australia’s HFC phase-down • Australia’s phase-down announced in June 2016 • Starts from 1 January 2018 • Reaches 85% from 2036 • Starting point 25% below Montreal Protocol reflecting current use • More regular smaller steps

Australia’s HFC phase-down 12. 000 10. 000 8. 000 6. 000 4. 000 Montreal Protocol phase-down schedule Australia's phase-down schedule 2036 2035 2034 2033 2032 2031 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 0. 000 2016 2. 000

Australia’s HFC phase-down allocation period Year 1 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 and onwards 2 3 4 5 6 7 8 9 10 and onwards Phase-down schedule Montreal Protocol (megatonnes CO 2 e) phase down schedule (megatonnes CO 2 -e) 8 8 7. 25 6. 25 5. 25 4. 25 3. 2 2. 9 2. 65 2. 1 1. 607 10. 718 9. 646 6. 448 3. 215 2. 143 1. 607

Australia’s HFC phase-down • Phase-down to be managed through import quota • Similar to HCFC phase out • 90% to be allocated to importers active between 2009 -2014, based on total HFC and HCFC imports • 10% available to any applicants (half able to be grandfathered from 2 nd quota period onwards)

HFC phase-down • Quota does not apply to HFCs contained in imported equipment • Quota does not apply to used HFCs, however restrictions apply to their import • Both are accounted for in the country of production • Provision for bans on new equipment o Bans could be used if alternatives are not being introduced into the Australian market o Bans previously used for CFCs and HCFCs

HFC phase-down • Industry stakeholders strongly support the phase-down • Industry called for a phase-down as early as 2007 – Provides investment certainty – Increase the range of products available – Provides for long term planning

What does it mean for Australia • Alternative technology already in Australia • Pace of alternative technology introduction will increase • Pace of phase-down expected to match the pace of technology change – No need to retire HFC equipment early • Use of recovered HFCs • Alternatives being developed to use in existing systems

The future • • • The government does not pick technology winners Australia is largely a technology taker o But we do innovate! Manufacturers will introduce alternatives based on Australia’s o Climate o Regulatory requirements, including energy efficiency o Economic factors

Australian Experience • Australia has a number of advantages o High industry standards o Skilled workforce o Accepting of alternatives o Quick to adapt o Not captive to particular markets

More information at: http: //www. environment. gov. au/protect ion/ozone/legislation/opsggm-review.