Refrigeration and Air Conditioning Industry Update from ARA

2016 is the turning point for the Refrigeration and Air Conditioning (R&AC) industry. It is important because the HVACR suppliers and users have major cost reduction opportunities through energy efficiency and emissions reduction.

Australia has the opportunity to adopt policies that will reduce the cost of HVACR services by $10B pa and reduce national emissions by at least 6% from HVACR alone.

2015 Set The Stage:

The Federal Government announced its intention to phase down HFC use in Australia by 85% by 2036. There remains a good deal of detail to be resolved.
Some state governments made good progress with programs supporting HVACR energy efficiency (NSW, VIC).
Considerable work was done by the industry to advise the federal government regarding the legislation that underpins the HVACR industry (The Ozone Protection and Synthetic Greenhouse Gases Management Act). The outcome is summarized on our website indicating that the industry wants better regulation and greater government initiative. Click here for our DoE submissions page and our posting regarding these submissions. There is a great deal more to do - see our summary of submissions to the OPPSGG MA Review here.
The European Union is leading the way with its HFC phase down policy and legislation. Many other countries and regions made recommendations for the phase down of HFC to the Montreal Protocol.
197 countries agreed to finalise an agreement for the phase down of HFC refrigerants in 2016 under the Montreal Protocol because HFCs will become a major incremental source of greenhouse gas emissions if we don't stop using them. This is important because it will enable the Montreal Protocol to be used to reduce the climate change impact of synthetic refrigerants as well as their ozone depletion impact.

Energy efficiency is well and truly on the agenda. It is clear that the HVACR industry can and must deliver greater energy efficiency. Both cost savings and emissions reduction are available and will play a role in national and international policy.
Original equipment manufacturers worldwide made a great deal of progress in providing HVACR equipment that uses low global warming potential refrigerants, all sectors. Many suppliers are offering natural refrigerant-based technology. Many are offering HFO based technology. Some are having a bet each way.

Implications For 2016

2016 will see change in most dimensions of the HVACR industry: regulations, standards, licensing, training and no doubt fierce commentary and marketing.

It will be global. It is very clear that all countries need to provide their HVACR industry with greater certainty in the transition to low emissions.

Australian governments have been challenged to provide a nationally consistent regulatory framework that delivers both HFC phase down and the basis for greater HVACR energy efficiency.

The industry will have access to important conferences and exhibitions including High Performance Energy, Atmosphere Australia and of course ARBS that will examine the many issues yet to be resolved.

Your Role

If you are a user or supplier of HVACR services you need to be aware that 2016 is the year that will set the agenda for the industry for the foreseeable future.

If you are considering an investment in R&AC plant or upgrade be sure you understand that HCFC and HFC refrigerant-based technology has a limited life. You are well advised to recognise that HFO refrigerants are an interim solutions at best. Be sure you consider natural refrigerant alternatives that will future proof your investment.

Whatever your role in the industry is, if you want better policy contact the ARA and get involved. We need you to support a more ambitious and comprehensive strategy to reduce the costs and emissions from HVACR services. You will support the 89 companies and NGOs that supported our submission to the Department of the Environment.