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 CO2e 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 All 197 Montreal Protocol parties are committed to the phase-down Proven mechanism Long term certainty Financial and technical support for developing countries

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

Australia’s HFC phase-down allocation period Year Phase-down schedule (megatonnes CO2e) Montreal Protocol phase down schedule (megatonnes CO2-e) 1 2018 8 10.718 2019 9.646 2 2020 7.25 2021 3 2022 6.25 2023 4 2024 5.25 6.448 2025 5 2026 4.25 2027 6 2028 3.2 2029 3.215 7 2030 2.9 2031 2032 2.65 2033 9 2034 2.1 2.143 2035 10 and onwards 2036 and onwards 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 2nd 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 Bans could be used if alternatives are not being introduced into the Australian market 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 But we do innovate! Manufacturers will introduce alternatives based on Australia’s Climate Regulatory requirements, including energy efficiency Economic factors

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

More information at: http://www. environment. gov