Ken Wyatt (Hasluck, Liberal Party, Minister for Aged Care) Share this | Hansard source

I thank all members for their contribution to the debate on the Ozone Protection and Synthetic Greenhouse Gas Management Legislation Amendment Bill 2017. The bill implements the outcomes of a significant review of the program, introducing further measures to reduce emissions, streamlining the administration of the act and reducing compliance costs on the industry. The bill will reduce the number of businesses required to hold a licence by one-third, halve the reporting obligations and reduce the number of invoices sent by 94 per cent. The bill will achieve this while continuing to ensure a high standard of environmental protection.

The central element of this bill is an 85 per cent reduction of the importation of hydrofluorocarbons—HFCs—through a phase-down from 2018 to 2036. HFCs are potent synthetic greenhouse gases, primarily used in refrigeration and air conditioning equipment. HFCs can be thousands of times more potent than carbon dioxide, and make up around two per cent of Australia's annual emissions. The phase-down will be achieved by establishing a quota scheme and reducing caps on imports starting on 1 January 2018. A similar approach was used successfully to phase out gases such as chlorofluorocarbons—CFCs—and hydrochlorofluorocarbons—HCFCs. The phase-down, together with other measures included under this program, will reduce emissions by up to 80 million carbon dioxide equivalent tonnes by 2030. This is a significant contribution towards our Paris target.

The Australian market is well placed for this domestic phase-down and industry supports the measures. Consumers will be able to use their existing equipment and systems until the equipment's natural end of life. The phase-down will also leave a 15 per cent residual from 2036 to ensure that niche uses, such as medical aerosols, are available and existing equipment can be serviced.

The phase-down will be in line with the Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer, under which all 197 parties to the Montreal protocol agreed to phase down HFC production and imports from 2019. The global phase-down is predicted to reduce emissions by 72 billion tonnes of carbon dioxide equivalent by 2050—the equivalent of one and a third year's global emissions. It has been estimated that this action will avoid up to 0.5 degrees of temperature rise by 2100, according to the United Nations Environment Programme.

Australia played a leadership role, co-chairing negotiations to secure this global agreement, culminating in October 2016, and I again pay tribute to my predecessor, the member for Flinders, in this regard. Australia has a proud record of leadership in addressing ozone depletion and issues related to the Montreal protocol. It is widely considered the world's most successful environmental protection agreement, being the only one with universal acceptance. It has reduced the production and import of ozone-depleting chemicals by over 99 per cent globally. Concentrations of ozone-depleting chemicals in the atmosphere are reducing and scientists confidently predict the ozone layer will be repaired by the middle of this century in the mid-latitudes and about 20 years later in Antarctica. It is a truly remarkable achievement. Through this bill Australia will continue to show the same leadership on HFCs.

Question agreed to.

Bill read a second time.

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