Destruction Incentives Program for waste synthetic greenhouse gases and ozone depleting substances
On 1 July 2013, the Destruction Incentives Program for waste synthetic greenhouse gases (SGGs) and ozone depleting substances (ODS) commenced. From 1 July 2014, changes to government policy to end the equivalent carbon price on SGGs will come into effect. The Destruction Incentives Program will also cease at this time, with incentive payments available until 30 June 2014.
The Government recognises the important role that Refrigerant Reclaim Australia has played in the destruction of SGGs and ODS since its introduction in 1993. The Department will work with Refrigerant Reclaim Australia on the completion of the Destruction Incentives Program. Refrigerant contractors will continue to receive the government incentive payment of $1.50 per kilogram for waste SGGs and ODS returned to participating Refrigerant Reclaim Australia Wholesalers on or before 30 June 2014.
Destruction Incentives Program
The Destruction Incentives Program provides financial incentives for the destruction of waste SGGs, hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and ODS. From 1 July 2013, the government has provided an incentive payment of $1.50 per kilogram of waste SGG and ODS destroyed to refrigerant contractors. This is a 50 per cent increase on the $3.00 per kilogram payment by Refrigerant Reclaim Australia for waste gas recovered and provided to Refrigerant Reclaim Australia for destruction.
The Government’s Destruction Incentives Program is intended to operate in addition to existing and future industry operated destruction programs. Currently Refrigerant Reclaim Australia is the only industry operated program. The Government Program does not affect the ability of Refrigerant Reclaim Australia to continue to fund and operate the existing refrigerant recovery program.
Exemption for intentional destruction of SGGs through manufacturing
The Destruction Incentive Program allows for an exemption from the equivalent carbon price when SGGs can be, and are, destroyed when utilised in specific manufacturing processes. These processes will be subject to evidence demonstrating the manufacturing process and the method of destruction that provides emission abatement consistent with the Kyoto Protocol. Applications for exemptions will be subject to the Regulation amendments being approved.