Government announces shift in refrigerant management

In recent years, the Australian HVAC&R industry has voiced serious concerns about the rate at which we are installing and using refrigerant compared to the quotas allowed under our HFC phase-down schedule.

The phase-down was designed under the assumption that market forces would gradually shift the industry away from refrigerants with high global warming potential (GWP) towards more sustainable alternatives. Unfortunately, in some key sectors, a lack of awareness among end users and a preference for lowest first cost has led to the presence of “stubborn” refrigerants in the bank, and in new equipment.

In commercial refrigeration, R404A (GWP 3,922) remains common. In commercial HVAC, many VRF systems are using R410A (GWP 2,088). And in mobile air conditioning, Australia’s import laws still allow vehicles using systems with R134a (GWP 1,430). Because of their high GWP and Australia’s decreasing HFC bulk import quota, supply of these refrigerants is becoming increasingly constrained. Experts predict that by the end of 2026, shortages will be acute.

In a communication to industry stakeholders, the federal government has acknowledged concerns about the HFC phase-down.

“Many of you have provided input. We have heard that action across many equipment categories and regulatory certainty are high priorities,” a government spokesperson said.

In response, the government has announced that HFCs and some alternatives to HFCs, including HFOs, have been listed on the Industrial Chemicals Environmental Management Standard (IChEMS) workplan for 2026-27.

According to the communication, the Australian government will be considering new measures to manage the environmental risks of this group of chemicals. It says this will be more efficient than considering individual refrigerants and equipment classes.

The government has said possible measures may include restrictions on what certain HFCs can be used for, including in pre-charged equipment. These measures will be developed and finalised by July 1, 2027 with implementation to follow. It is expected the measures will be implemented under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.

The government is encouraging stakeholders to provide information and feedback during the process. Those interested can subscribe to IChEMS updates, including calls for information and public consultations, by emailing ichems.enquiry@dcceew.gov.au

The government says these measures will apply in addition to existing requirements, including the HFC import quota. Further work is underway to bring together current activities across the environment, climate, and work health and safety portfolios in order to provide a clear and complete view of how HFCs will be managed across Australia.

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