House debates

Thursday, 30 March 2017

Bills

Ozone Protection and Synthetic Greenhouse Gas Management Legislation Amendment Bill 2017; Second Reading

9:46 am

Photo of Josh FrydenbergJosh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share 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

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