Classification
RPSS KMs for Sam and Kara at Officials Weekly Meeting
Meeting date: May 20, 2025
Location: MO
Background
s 9(2)(f)(iv)
s 9(2)(ba)(i)
s 9(2)(f)(iv)
Key Messages
RPSS design
• We understand that following your meeting with the HPSA on Thursday (15/5/25)
you would like to discuss recycling and reclamation and the RPSS in greater detail.
Classification
• s 9(2)(f)(iv)
• s 9(2)(f)(iv), s 9(2)(ba)(i)
Will there be an HFC shortage in New Zealand?
• s 9(2)(f)(iv)
• From a regulatory perspective, the importation of HFCs are controlled through two
key pieces of policy, the ETS and the Kigali Amendment to the Montreal Protocol.
• The ETS requires that NZUs be surrendered when these gas are imported, making
higher GWP gases more costly than lower GWP alternatives for firms to import.
Additionally, the Kigali Amendment has placed importation quotas on parties,
including New Zealand.
• The ETS has been effective in incentivising the use of lower GWP gases. New
Zealand has gradually moved away from the importation of higher GWP gases.
• With the ETS incentivising lower GWP alternatives, NZ is in a good position to meet
Kigali Amendment phase down targets. New Zealand has not yet reached any of its
annual HFC import quotas.
• s 9(2)(g)(i)
The Australian case
• Australia is in different situation regarding HFC imports. Australia does not have a
carbon price on HFC imports, so the Kigali quote is the main policy tool impacting
HFC imports into their domestic market.
• The Australian importation regime has seen, in recent years, domestic HFC demand
exceed that which was afforded under phase down limits. This supply pressure is
expected to continue over the coming years. Additionally, Australia has sharp step
downs in its import quota.
Classification
• In previous years, New Zealand’s import of HFCs have remained under the import
limits established under Kigali, additionally the step downs in the limits are more
gradual than the sharp decreases that Australia will face in the coming years
Areas of intersection for refrigerant policies
• As we have discussed, New Zealand has not yet reached any of its annual Kigali
import quotas. The ETS plays a much stronger role in economically restricting the
supply of high GWP HFCs into NZ. The ETS also provides an economic incentive to
either destroy and/or export these gases rather than recycling or reclaiming them.
• s 9(2)(f)(iv)
RPSS focuses on data collection and training requirements.
• s 9(2)(f)(iv)
• s 9(2)(f)(iv)
The ETS provides the financial
incentives for destruction, and the Kigali Amendment to the Montreal Protocol
contains New Zealand's import quotas.
Next Steps
• s 9(2)(f)(iv)
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•
•
Classification
• s 9(2)(f)(iv)
