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Debate opens on introducing HFC tax in the UK

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2009-03-27 - hydrocarbons21.com
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In the April RAC magazine, SIRAC, the networking organisation promoting new technology in refrigeration and air conditioning, discusses its proposal on taxing hydrofluorocarbons on a Global Warming Potential basis as a tool to fund the development of new technology, such as hydrocarbons technology, and help prevent leakage in the UK.
Debate opens on introducing HFC tax in the UK
SIRAC, the Industrial Academic Research Partnership Network on Sustainable Innovation in Refrigeration and Air Conditioning, has set out to open a wider debate within the RAC industry on its proposal to introduce a tax on hydrofluorocarbons (HFCs) based on their Global Warming Potential (GWP). Revenues would then be used to subsidise recovery, new technology and training. Being a significant contributor to the greenhouse gases emitted worldwide, the whole RAC supply and user chain should take environmental responsibility, argues SIRAC in the April 2009 RAC magazine.

The proposal

Similar to the approach already implemented in Norway and Denmark, SIRAC proposes the introduction of a UK tax on the supply of HFCs, whereby the revenues would be used to fund improvements in refrigerant management, including:
  • Incentives to return or recycle refrigerants
  • Subsidies on innovation and adoption of new technology to enable it to compete with established technologies with poorer environmental credentials
The need to press for more effective legislation and fiscal measures to incentivise the adoption of new technology and leakage reduction, emerged at the “Futures Conference” event organised by SIRAC in early February, where there was strong consensus that technical solutions on their own would not be sufficient to respond to long-term problems such as refrigerant containment. Participants acknowledged the important role natural refrigerants, including hydrocarbons, could play in building a sustainable and competitive RAC industry.

SIRAC now welcomes comments on the UK HFC tax introduction debate.

About SIRAC

SIRAC is a networking organisation for promoting new technology in refrigeration and air conditioning that helps increase the flow of information between those with problems to solve and those with the ideas to solve them.




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2009-04-06 19:50:29 - Anonymous
what happened to Green Cooling Council?
2009-03-30 01:54:51 - Brent Hoare
In spite of a concerted campaign by the fluorocarbon industry and their supporters, in Australia the Government is proposing to include HFCs in their Emissions Trading Scheme currently before the Parliament, the Carbon Pollution Reduction Scheme (CPRS).

Although the prevailing view here so far is that an ETS is more effective than a tax, the Nordic experience of HFC taxes has been very influential in the Australian Government's decision to extend the scheme to HFCs.

In particular, the Statistics Norway 2007 paper "Emissions from consumption of HFCs, PFCs and SF6 in Norway" by Kathrine Loe Hansen clearly demonstrated the effect of the HFC tax in reducing emissions, and provided a key argument for the Government's rejection of the fluorolobby's case to be given special treatment and to exclude HFCs from coverage by the scheme.

The CPRS will both impose an obligation to purchase permits on large importers of fluorocarbon gases (over 25,000 kilotonnes), and amend Ozone legislation and regulations to substantially increase existing levies to impose a carbon equivalent price on smaller importers and substances in precharged equipment. Although details are soon to be announced, it is expected that at least some of the revenue generated will be used to improve refrigerant recovery rates of all fluorocarbons.

Clearly a globally consistent mechanism to internalise the environmental cost of use and emissions of HFCs and other high GWP gasses would be preferable, but I hope the Australian approach will at least help convince other countries of the urgent imperative to take strong action to reduce HFC emissions.








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