Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Hydrofluorocarbons (HFCs)

Aust Gov
16th September 2016

Regulation Impact Statement – Department of Environment and Energy

On 5 May 2016, the Australian Government decided to introduce a quota on the importation of hydrofluorocarbons (HFCs) from January 2018.

HFCs are the dominant gas used in refrigerators and air conditioners. The use of HFCs replaced hydrochlorofluorocarbons (HCFCs) which have largely been phased out due to HCFCs being an ozone depleting gas. While HFCs are not an ozone depleting gas they have a high global warming potential and were responsible for 1.8 per cent of Australia’s greenhouse gas emissions in 2012-13.

The use of HFCs is already falling and the quota system will set an upper limit on the amount of HFCs that can be imported. A Regulation Impact Statement (RIS) was prepared exploring several options to reduce the use of HFCs. The RIS recommended the introduction of a quota on imports, without allocating the quota to existing importers based on historical market share due to concerns it may restrict competition. The Office of Best Practice Regulation (OBPR) assessed the RIS as compliant and best practice with the Government’s best practice regulation requirements.

The RIS estimates the increase in average annual regulatory burden from introducing the quota is $4.2 million. The OBPR has agreed with this estimate.

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