Global supply chain problems could affect HFC imports

Australian imports of hydrofluorocarbons (FHFCs) have been delayed due to COVID-19 and other issues.

The Australian Government has changed the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 (the Regulations) so that HFC importers aren’t disadvantaged by shipping delays and sufficient HFCs will be available in 2022.

Without the changes, imports which were expected in 2021 that are now delayed until 2022 would have counted against importer’s 2022 quota.

Affected HFC importers would have lost the amount of quota they did not import in 2021 as there was no provision to carry forward unused HFC quota into the following year. This would have reduced the amount of HFCs available in the Australian market and reduced future quota allocations for affected importers.

Imports that were expected in 2021, now delayed until 2022, will still be counted against the importer’s 2021 quota.

Importers will be in the same position they would have been in if the delays had never occurred. The changes don’t allow for imports to be more than the importer’s regular HFC quota allocation for 2021 and 2022.

There are sufficient HFCs available in Australia to meet demand into 2022, even with transport delays. Prices for HFCs may rise due to increased transport costs, increased demand from other countries and increasing prices for HFC in China (where Australia sources almost all HFCs).

The HFC phasedown is an important part of Australia’s emissions reduction commitment under the Paris Agreement and the Montreal Protocol on Substances that Deplete the Ozone Layer. Australia will remain compliant with the HFC phase-down commitments under the Montreal Protocol.