Meeting objectives
• Summarise the current marketplace dynamics for used synthetic refrigerants
• Provide an overview of the synthetic refrigerants product stewardship scheme (RPSS)
s 9(2)(f)(iv)
•
• Seek your approval on a communications plan to update sector stakeholders.
2
Policy objective and timeline
•
Objective: To reduce the greenhouse gas emissions associated with synthetic refrigerant use.
•
ERP 2: Introducing a synthetic refrigerants RPSS is projected to reduce emissions by 0.4 Mt CO2e
in 2030 and 0.7 Mt CO2e in 2035.
•
Source of emissions reduction: Synthetic refrigerants only cause emissions when they are
released into the environment (via leakage or intentional discharge). The projected ERP 2
emissions reduction is tied to the introduction of RPSS training requirements (effective from 2028)
for those purchasing and working with synthetic refrigerants.
•
RPSS development timeline: The Trust hosted a RPSS working group in 2019-2020. Public
consultation on introducing a RPSS ran in late 2022. The Trust applied for reaccreditation of their
voluntary scheme in 2024.
3
Terminology – classes of refrigerant gas
Gas class
Examples
Risks
Ozone depleting gases
CFCs and HCFCs
Ozone destruction
In scope for
(legacy gases)
product
stewardship
High emissions gases
HFCs
Global warming
(most common class of
gases used in NZ today)
Natural alternatives
Propane, carbon monoxide, Health and safety hazards
ammonia
4
Market dynamics for used synthetic refrigerants
•
Recently revised NZ ETS settings have facilitated a more competitive marketplace for HFCs
o The NZ ETS covers the import, export and destruction of HFCs.
o Before 2023, only a Product Stewardship Organisation (PSO) could claim NZUs for HFC
destruction. Subsequently, NZ ETS settings were updated to allow any company to claim NZUs for
destruction. Once changes took effect, a small number of companies entered the marketplace.
o CFCs and HCFCs are not covered by the NZ ETS, so there is no competition to destroy these gases.
•
The Kigali Amendment phases down HFC imports, restricting future supply
o New Zealand ratified the Kigali Amendment (an international agreement made under the
Montreal Protocol to phase down the production and consumption of HFCs globally) in 2019 and
has agreed to reduce its bulk HFC import quota from 1,340 ktCO2e in 2020 to 260 ktCO2e in 2036.
o Over time the HFC phase down is expected to restrict HFC supply in New Zealand, incentivising
the reclamation (re-use) of HFCs that are already in the country.
5
Current market players
• Market players are now competing to both destroy and reclaim used HFCs
• Gas destroyers:
o The Trust (Cool-Safe) (the only company on this slide that is part of the RPSS)
o RefDestruct working with RefSpecs
• Gas reclaimers:
o A-Gas working with Actrol (Rapid Exchange and Drop-a-JUG)
o Beijer Ref, Patton and RealCold (Gas2Go)
6
s 9(2)(f)(iv)
Key
B
lue = Commercial activity
System map - Synthetic refrigerants policy
Y
ellow = PSO role
Improper
Gr
een = Existing/incoming obligations
disposal
= Sources of emissions
Leaks
Collection and
Installation and
export/reclamation/
Import
Sale
maintenance
destruction
Bulk gas importers (15+ companies).
Many gas and equipment importers
Trained refrigerant technicians
Collection & export: Importers that on-
are also wholesalers.
(various certificates available
sell to international markets or export
Precharged equipment importers
requiring 1-4 years of training).
for international destruction.
(motor vehicle importers, heat pump
Some importers on-sell to
importers, industrial equipment, etc.)
wholesalers or to smaller vendors.
Approved fillers (1 day training).
Collection & reclamation: Small
number of companies (A-Gas, Actrol),
PSO: All vendors and buyers
Untrained workers.
but emerging market.
PSO: All importers to be RPSS
members. The PSO to collect data
must be RPSS members and
report sale/purchase data.
Home DIYers.
Collection & destruction: The Trust (via
on all imports of bulk synthetic
the CDS facility) and RefDestruct.
refrigerant gas and equipment.
Training requirements for the
PSO: Environmentally focused
purchase of bulk gas.
refrigerants training required for
PSO: Participants report gases
Bulk HFC gas imports must surrender
those maintaining refrigerant
exported or destroyed to RPSS.
NZUs in the ETS.
Equipment requiring installation
equipment.
RMA (destruction facility consenting).
(ie heat pumps) only saleable
SGGL levy on HFC precharged goods.
Health and Safety at Work
OLPA (willing discharge to air illegal).
when a RPSS qualified
(Hazardous Substances) Regulations
ETS (NZUs for HFC export/destruction)
installation service is attached to
2017.
Montreal Protocol destruction
the purchase.
efficiency standard (incoming regs)
s 9(2)(f)(iv)
s 9(2)(f)(iv)
s 9(2)(f)(iv)
Seeking your approval for the communications plan
Existing stakeholder expectations
In December 2024, a press release confirmed that RPSS regulations would be drafted and named the
Trust as the PSO. An EDM was also sent to stakeholders.
The Cabinet paper approving the drafting of regulations has been proactively released and reviewed by
some stakeholders.
s 9(2)(f)(iv)
12
Next steps
• Meeting with the Heat Pump Suppliers Association of New Zealand scheduled for 15 May
• A briefing to confirm of your preferred option will be provided in June
• Officials to progress your preferred option
• Officials will have further discussions with the Trust as needed.
13
Additional context slides follow
Kigali Amendment, annual NZ import quota
15
Refrigerants the Trust has collected over time
16
Overview of the synthetic refrigerants RPSS design
•
In accordance with the RPSS: The RPSS requires those purchasing or selling synthetic refrigerants
and equipment to be a member of the RPSS (Cool-Safe).
•
RPSS membership: Cool-Safe will have the ability to deny and revoke RPSS membership if
participation requirements are not met (which would prevent the denied applicant from legally
buying/selling synthetic refrigerants and equipment).
•
Data reporting: RPSS participants will have to report data on all sales/purchases of synthetic
refrigerants/equipment, providing detailed information on gas species, location and quantity.
•
Training requirements: Those working on refrigerant equipment must meet training requirements
(details in development, emissions savings are tied to this training requirement).
•
RPSS funding: The RPSS is funded by the Trust earning NZUs via the NZ ETS for the collection and
destruction of used HFCs in New Zealand.
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