Greenhouse Gas Import Lapse Draws Major Fine

Dept of Climate Change, Energy, Environment & Water

An investigation led by the Department of Climate Change, Energy, the Environment and Water's (DCCEEW) Compliance and Enforcement Branch has led to a major Australian energy company being fined $400,000 for breaching national environmental law.

GE Grid Australia failed to disclose imports of electrical switchgear equipment containing sulfur hexafluoride (SF6) during eight reporting periods, despite several reminders between 2018 and 2022.

These failures led to the Federal Court declaring that the company had breached section 46 of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and ordering them to pay $450,000 including costs.

"This outcome shows that those who breach our national environmental law will face the full force of the law," a DCCEEW spokesperson said.

"SF6 is a potent greenhouse gas which has 22,800 times the global warming potential of Carbon Dioxide - Co2. That's why companies must report their imports under the Act.

"This outcome is an important reminder to license holders to make sure they understand their legal obligations and comply with the law."

In Her Honour's judgment, Justice Perry found that GE Grid's conduct was "…serious, systematic and of significant duration."

Her Honour also stated that:"The seriousness of the contraventions in this case is heightened given that the contraventions were not isolated incidents" and "…the penalty is not set at such a level that it could be regarded merely as an acceptable cost of doing business or an economically rational choice."

Read the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and license holders' obligations.

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