Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill will amend the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, which implements Australia's obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer.

It will improve the efficiency of the ozone protection and synthetic gas management program, achieve significant environmental outcomes and reduce Australia's emissions.

The bill implements the outcomes of a significant review of the program, streamlining the administration of the act, reducing burdens on industry and ensuring a high standard of environmental protection. It will reduce the number of businesses required to hold a licence, halve the reporting obligations and reduce the number of invoices sent by up to 94 per cent.

The central element of this bill is an 85 per cent phase-down of the importation of hydrofluorocarbons (HFCs) by 2036.

HFCs are powerful gases, primarily used in the air-conditioning and refrigeration industry, that can be thousands of times more potent than carbon dioxide, making up around two per cent of Australia's yearly emissions.

The phase-down will be achieved by establishing a quota scheme and diminishing cap on imports starting on 1 January 2018. A similar approach was used successfully to phase out prior gases such as CFCs and HCFCs.

This phase-down will be in line with the Kigali Amendment, under which all 197 parties to the Montreal Protocol and Australia's major trading partners agreed to phase down HFCs.

Australia played a leadership role, co-chairing negotiations to secure this global agreement, culminating in October 2016, and I pay tribute to my predecessor, the member for Flinders, in this regard.

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 will contribute significantly towards our Paris target.

Globally, the HFC phase-down is expected to bring major benefits. It could result in 72 billion tonnes of emissions reduction by 2050—

Mr Bowen interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for McMahon!

Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Link to this | Hansard source

the equivalent of at least 1.3 times one year's global emissions. As it has been estimated, it will avoid up to 0.5 degrees of temperature rises by 2100, according to the United Nations Environment Program.

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 natural end of life. In addition, the phase-down will leave a 15 per cent residual from 2036 to ensure that maintenance of hard-to-replace and existing equipment can continue.

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 the 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. A truly remarkable achievement.

Through this bill, Australia, led by the Turnbull government, will continue to show the same leadership on HFCs. I commend it to the House.

Debate adjourned.