Under the Australian Government's Clean Energy Future Plan, synthetic greenhouse gases listed under the Kyoto Protocol have an equivalent carbon price applied through the Ozone Protection and Synthetic Greenhouse Gas Management legislation. Gases covered will include hydrofluorocarbons, perfluorocarbons (excluding gases produced from aluminium smelting) and sulfur hexafluoride, and any equipment or products which contain these gases.
These arrangements commenced on 1 July 2012 with a levy applied at the point of import or manufacture.
The price per tonne of synthetic greenhouse gas is based on the carbon price and the global warming potential for each gas relative to carbon dioxide. Applying an equivalent carbon price to synthetic greenhouse gases will create an incentive to reduce emissions by placing a price tag on every tonne of synthetic greenhouse gases. The equivalent carbon price will encourage businesses and customers to:
- increase recycling of synthetic greenhouse gases
- improve servicing of existing equipment to reduce leakage of refrigerant gases
- a switch to purpose-designed equipment using lower global warming potential (GWP) refrigerants, only where this is appropriate and meets relevant safety standards and legislative requirements
- innovation by manufacturers to develop safe, low GWP refrigerants and suitably designed equipment for those refrigerants.
From 1 July 2013, incentives will be provided for the destruction of waste synthetic greenhouse gases and ozone depleting substances, recovered at end of life. Further information will be released as part of a consultation process commencing in August 2012.
Find out more
- Kyoto Protocol
- Ozone Protection and Synthetic Greenhouse Gas Management legislation
- More about the Clean Energy Future initiative
Amendments to Ozone legislation
From 1 July 2012, amendments to Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 will extend licensing controls.