Application of an equivalent carbon
price for synthetic greenhouse gases
Department of Sustainability, Environment, Water, Population
and Communities
Clean Energy Future Announcement
10 July 2011 – release of Climate Change Plan
• Hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) (not
from aluminium smelting) and sulfur hexafluoride (SF6)
will face an equivalent carbon price
• The equivalent carbon price will be administered under
the ozone protection and synthetic greenhouse gas
legislation
• Equivalent carbon price will be adjusted annually to
reflect the prevailing carbon price (and based on the GWP
of each gas)
• Incentives will be provided for destruction of waste SGGs
and ODS, from 1 July 2013
Fixed Price Period
• Equivalent carbon price commences with a three
year fixed price period
– $23.00 in 2012-13
– $24.15 in 2013-14
– $25.40 in 2014-15
• After 1 July 2015, the carbon price will be the
benchmark average auction charge
What are the proposed changes
to the Synthetic Greenhouse
Gas legislation?
• Import/Manufacture levies are amended for bulk
SGGs and equipment containing SGGs
• levy charged at prescribed rate ($165 per tonne)
+ equivalent carbon price, based on the GWP of
the gas
• Perfluorocarbons (PFCs) and sulfur hexafluoride
(SF6) will be included
• The scope of pre-charged equipment expanded to
include all equipment containing a SGG
• provide for equipment or products to be
exempted by Regulation
Proposed changes to the SGG
legislation (2)
• Levy offsets for exports of SGGs, in bulk or in
equipment
• Reporting period will remain 15 days after the end
of the quarter
• Levy payment extended from 15 to 60 days after the
end of the quarter
• carbon price component will go to consolidated
revenue
• Exemptions for some imported equipment defined
as a personal effect
• for example – private motor vehicles,
refrigerators, freezers
Proposed Destruction Program
• Incentives will be provided for destruction of
waste SGGs and ozone depleting substances,
recovered at end of life
• Payment will be made after verification of
destruction of the gas
• Program will be developed in consultation
with industry
• Program will start 1 July 2013.
Legislation
Date
Step
28 July 2011
Draft legislation for the Clean Energy Legislative Package
released
Legislation can be accessed at: www.climatechange.gov.au
August –
September
2011
Government considers stakeholder views and decides the final
form of the Clean Energy Legislative Package
September – Legislation considered by Parliament
November
2011
Clean Energy Regulator to be set up promptly after legislation passed
Implementation of scheme commences 1 July 2012
Legislation (2)
• Aims from today’s discussion is to seek your comments
• Please include any comments in your submission back to DCCEE
by 22 August 2011
• We are seeking technical comments on the draft legislation
only, and how it reflects the broader policy objectives
• How to make a submission
• Complete a submission cover sheet (found here:
http://climatechange.gov.au/government/submissions/cleanenergy-legislative-package.aspx)
• Email your cover sheet and submission
to cleanenergybills@climatechange.gov.au
• Or, post your submission to:
Carbon Price Legislation Branch
Climate Strategy and Markets Division
Department of Climate Change and Energy Efficiency
GPO Box 854
CANBERRA ACT 2601