Julie Owens (Parramatta, Australian Labor Party, Shadow Parliamentary Secretary for Small Business) Share this | Link to this | Hansard source

Labor supports the Ozone Protection and Synthetic Greenhouse Gas Management Legislation Amendment Bill 2017. The bill continues the implementation of the Montreal protocol, which was made law in Australia during the Hawke government and is considered one of the most successful global environmental agreements. Action needs to be taken on phasing down HFCs, hydrofluorocarbons, as they are a greenhouse gas 1,000 times more powerful than carbon dioxide. Although they make up only around two per cent of Australia's greenhouse gas emissions, their contribution has been increasing, because they are being used to replace other ozone-depleting chemicals that are being phased out under the Montreal protocol. Hydrofluorocarbons are organic compounds of hydrogen, fluorine and carbon. They are produced synthetically and are used primarily as refrigerants. They became widely used beginning in the late 1980s, with the introduction of the protocol that phased out the use of chemicals such as halons and chlorofluorocarbons that contributed to the depletion of the Earth's ozone layer.

However, while HFCs have an ozone depletion potential of zero, they are incredibly powerful greenhouse gases and thus their manufacture and use has become increasingly regulated in the 21st century. This will mean Australia's phase-down is consistent with the international HFC phase-down under the protocol that was agreed in Kigali in October last year. The phase-down will be managed through the existing licence system under the Ozone Protection and Synthetic Greenhouse Gas Management Act, and import quota limits will be managed under the Ozone Protection Act. The international agreement underpinning these changes is to phase down HFC imports by 85 per cent in developed countries, starting in 2019 and ending in 2036. I have been advised that Australia is well placed to meet and exceed the global phase-down and will start one year earlier in 2018 with a limit 25 per cent below the Montreal protocol limit. Industry supports the earlier start and lower limit, and I commend them for their proactive work in this area. The Montreal protocol is widely regarded as the most successful environmental treaty. It has phased out over 99 per cent of ozone-depleting chemicals such as CFCs, HCFCs and halons. It is a real indication of what the world can do when it decides to act and the important role Australia can play in these incredibly important environmental actions.

The government may try to claim that this is a key element of Australia's 2030 emission targets. Make no mistake: it is a good commitment, but Australia's current climate policies are not sufficient to achieve even its current commitment to reduce emissions by 26 to 28 per cent by 2030 on 2005 levels. The coalition government's direct action plan has proven beyond any doubt to be an ineffective waste of taxpayers' money. The government's own data shows carbon pollution rising since the coalition implemented direct action, with their own data projecting emissions rising all the way to 2030, which is as far as the projections go. In fact, the government's data shows that the government will miss their target of a 26 to 28 per cent pollution reduction by 2030 by a full 26 per cent. The data shows that emissions in 2030 will effectively be the same as in 2005, showing zero progress for 25 years. The government's policies will not constrain, let alone reduce, emissions to 2020, let alone 2030.

If the government is serious about meeting its obligations under the Paris Agreement they will have to strengthen their 2030 targets as well as implement real policies to reduce emissions, especially in the electricity sector. The Paris Agreement includes a ratchet mechanism that will see countries increase their pledges to meet the two-degree target. Current pledges under the Paris Agreement are consistent with three to four degrees of warming, but the government pretends that their 26 to 28 per cent target is all they will have to do. They know that this is not true, and they know that by ignoring this fact they are effectively misleading the Australian people.

In contrast, Labor's target—45 per cent by 2030—is consistent with what the Climate Change Authority has said is needed to reach the two-degree target. It seems unlikely that the Prime Minister has the will or the ability to stand up to the extreme Right in his own party and to deliver the policy leadership we need to modernise our energy system. China, New Zealand, Brazil and more are all asking important questions about this government's lack of climate and energy policy to meet our Paris Agreement commitments. Just as they refuse to give answers at home, they are refusing to answer international concerns about their policy black hole.

The Turnbull government also refuses to introduce policy to support renewable energy investment post-2020, which is crucial if we are to meet our Paris obligations. The current figures show that Australia's pollution rose by 0.8 per cent in the year to June 2016 and almost 2.5 per cent since June 2014. The data also shows a shocking 16.2 per cent in annual electricity emissions in the last two years alone. Power bills and pollution will continue to rise as a direct result of Malcolm Turnbull's and his government's decision. Labor has a proud environment record, and we support strong action on protection of Australia's unique environment as well as global action on climate change.

Joanne Ryan (Lalor, Australian Labor Party) Share this | Link to this | Hansard source

Labor supports the Ozone Protection and Synthetic Greenhouse Gas Management Legislation Amendment Bill 2017. The bill continue the implementation of the Montreal Protocol, which was made law in Australia during the Hawke government and is considered one of the most successful global environmental agreements. Labor has a proud environmental record, and we support strong action on protection of Australia's unique environment as well as global action on climate change. The government may try to claim that this bill is a key element of Australia's 2030 emissions targets. Make no mistake: this is a good commitment, but Australia's current climate policies are not sufficient to achieve even its current commitment to reduce emissions by 26 to 28 per cent by 2030 on 2005 levels. With an opportunity to speak about the environment, I would make a note of welcoming the Finkel report and also being pleased to be part of a Labor caucus that has put its bipartisan hand across this chamber to suggest that together we might be able to make a difference to global warming.

This government loves to talk about their energy policy being based on economics and engineering, but that is not true. According to the findings of the Australian power generation technology report, using the most modern coal plants will make energy 45 per cent more expensive; using carbon capture and storage will make prices swell. But it is important to note, while we are talking about the environment and we are talking about legislation to protect that environment, that there is work to do in this parliament. There is work to do for our colleagues on the other side to come to grips with the impacts of on our environment of our energy policies.

My electorate is one of the youngest in the country. These issues really matter to the people of Lalor and to the young people in my community who speak to me so often about what we are doing to protect the environment and about what we are doing to change the way industry operates to ensure that we minimise the damage that we are doing. This bill is part of that story.

So why is Australia phasing down HFCs? It is because they are potent greenhouse gases—a thousand times or more powerful than carbon dioxide. They make up around two per cent of Australia's greenhouse gas emissions but are growing as they replace ozone-depleting chemicals that have been phased out under the Montreal protocol. A phase-down of HFC imports is a simple and cheap way to reduce greenhouse gas emissions. The phase-down will reduce Australia's HFC imports and, as a result, emissions by 85 per cent between 2018 and 2036 and is a key element of Australia's 2030 emissions target. This fits with the global approach. The phase-down is consistent with the global HFC phase-down under the Montreal protocol that was agreed in Kigali in October 2016.

The protocol phases down HFC imports in developed countries by 85 per cent between 2019 and 2036, and we will get started on that early. Australia is positioned to meet and exceed the global phase-down schedule. We will start one year earlier, in 2018, and with the limit of 25 per cent below the Montreal protocol limit, matching Australia's current HFC use. Industry supports the earlier start and the lower limit. It is a pleasure to stand in this House in agreement with those opposite on a piece of legislation. The Montreal protocol has phased out over 99 per cent of ozone-depleting chemicals, including CFCs, HCFCs and halon, and is widely regarded as the most successful environmental treaty.

The phase-down plan is for a gradual reduction in the amount of HFCs permitted to be imported into Australia. Reduced imports will lead directly to reduced emissions. The phase-down will be managed through the existing licence system under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and import quota limits under the ozone act. Ninety per cent of quota will be allocated to existing importers based on their market share between 2009 and 2014. The remaining 10 per cent will be available to any applicant through a ballot system.

The phase-down approach has been used for CFCs and HCFCs. Business is familiar and comfortable with the approach as it provides long-term certainty to make investment decisions; something that has been sorely lacking under some of the environmental policies of those opposite over the last four years. Business first proposed the phase-down in 2007, so it has been a long time coming. It has been designed in close collaboration with business. If you look at the industry figures, the refrigeration and air conditioning industry employs over 173,000 people in over 20,000 businesses. There are over 45 million pieces of refrigeration and air conditioning equipment in Australia. Refrigeration and air conditioning equipment leaks far less now than it did 25 years ago when these conversations began. This is due to improvements in design, construction, installation and maintenance. The same amount of refrigerant is imported now to service equipment as was imported 25 years ago, despite that rapid growth in equipment numbers. Since 1990, air conditioners in cars have become standard, and most houses have one or more air conditioners. Refrigeration and air conditioning equipment has become more energy efficient. It is saving consumers money, reducing the strain on the energy grid, and reducing environmental emissions. The equipment now uses around a third of the power it did 20 years ago due to initiatives such as the Australian minimum energy performance standards. The phase-down has been worked through in consultation with industry, and industry is pleased to be joining this.

In closing, I would say that it is a pleasure to be on this side of the House tonight to support a piece of legislation that will lead to protections for our environment and that has the support of industry. I look forward to working with government members on a way forward in all environmental matters in limiting global warming; in limiting our use of carbon; in finding ways to invest in the research and development that is required to continue the road to increase renewables, which is supported greatly by the Australian public; in finding employment for Australians in renewable industries as well as to looking at research and development. I look forward to this government determining that it made an error in withdrawing funds for research and development, particularly for clean carbon storage in those areas that are being discussed this week after Dr Finkel's report.

Ken Wyatt (Hasluck, Liberal Party, Minister for Aged Care) Share this | Link to 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.