Joanne Ryan (Lalor, Australian Labor Party) Share 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.

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