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Guide · Energy efficiency

What does the HFC refrigerant phase down mean for store refrigeration?

4 min read · By Nextage Group · Published · Reviewed

Open refrigerated wine case in a bottle shop

Australia has been cutting bulk imports of HFC refrigerants since 2018, towards an 85% reduction by 2036. The step on 1 January 2026 cut supply by a further 19%, and industry groups say high GWP gases such as R404A are getting scarcer and dearer. A government proposal now out for comment would limit new commercial cold chain uses to HFCs with a global warming potential below 150 from 1 January 2028. Servicing existing equipment would still be allowed.

How does the phase down work?

It runs under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, through a quota on bulk imports of HFC gas. No HFCs are made in Australia, so the import quota is the supply. It started on 1 January 2018 and steps down at the start of each two year quota period, to an 85% reduction from the baseline by 2036.

The quota does not cover gas already inside imported equipment, or used and recycled gas. It squeezes the refill market, which is where a store's leaking case or cool room draws from.

What changed on 1 January 2026?

The quota stepped down again, cutting the gas that can be supplied by a further 19%. Refrigerants Australia said in November 2025 that refrigerant costs had already tripled in a few years, and that small and medium businesses would be hit hardest. Large supermarket operators are largely shielded by long term supply contracts. The same group has called for a ban on bulk imports of R404A from 2028 and on servicing with it from 2030. No such ban has been made.

What is proposed for 2027 and 2028?

The Department of Climate Change, Energy, the Environment and Water opened consultation on 21 September 2026 on ten proposed listings on the national IChEMS Register. As reported by industry press and SGS, the refrigerant proposals are:

FromProposal
1 January 2027Users of HFO refrigerants to avoid intentional releases
1 January 2028HFCs listed in Schedule 6. New domestic and commercial cold chain uses limited to HFCs with a GWP below 150
1 January 2028Servicing equipment already in service, to the manufacturer's specification, still permitted
After 1 January 2032Review of the exceptions for transport, marine and ultra low temperature refrigeration

Comments close at 5pm AEDT on 23 October 2026. None of this is law yet. The government's 2026 to 2027 workplan, published in April, said new refrigerant restrictions could be finalised by 1 July 2027.

Which gases are under pressure?

RefrigerantWhat the sources say
R404AHigh GWP. Supply increasingly limited and costs rising. Industry has asked for import and service bans
R134aHigh GWP. Availability increasingly limited
R410AGWP 2088. New multi head split and VRF air conditioners over GWP 750 with a charge of 2.6 kg or less banned from 1 July 2025
CO2 (R744)GWP 1. Already well under the proposed 150 limit

Every store should have a register listing each case, cool room and air conditioning system, with its gas, its charge and its age. It is the list a refrigeration contractor needs to plan replacements, and the list a climate report needs, because leaked refrigerant is counted in Scope 1.

Who can work on store refrigeration?

Only technicians holding the refrigerant handling licence issued by the Australian Refrigeration Council. That covers leak checks, regassing and replacement. Nextage manages refrigeration and air conditioning programs with licensed technicians doing the licensed work.

What a store fleet can do now

  • Build the gas register above, store by store
  • Fix leaks first, because every kilogram that leaks is replaced at today's higher price
  • Plan replacement of the oldest high GWP systems at the end of their life, not after a failure in summer
  • Cut the load on the systems you keep

Aerofoils and air curtains help with the last one. Aerofoils keep more of the cold air inside an open case, and air curtains slow the warm air coming through an open cool room door, so the plant runs less. They do not fix a leak or change the gas.

FAQ

Questions people ask

Is R404A banned in Australia?

Not as of 16 October 2026. Bulk imports of HFCs, including R404A, are capped under the phase down. A proposal open for comment until 23 October 2026 would limit new commercial cold chain uses to HFCs below GWP 150 from 1 January 2028.

Can existing store refrigeration still be serviced?

Yes. The 2028 proposal keeps servicing of equipment already in service, to the manufacturer's specification. The gas for it is what gets scarcer and dearer.

Why is refrigerant getting more expensive?

Because the import quota steps down every two years. The step on 1 January 2026 cut supply by a further 19%.

Do aerofoils and air curtains help with the phase down?

Indirectly. They cut the load on refrigeration, so the plant runs less. They do not stop leaks or change the refrigerant.

Talk it through with someone who does this.

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