Airing Out the Gases

The insurance industry has been criticised for blocking the recovery of hundreds of written-off
vehicles that contain highly potent greenhouse gas.

Greenhouse Gases for Auction
About 6,000 cars find their way to auctions in parts and as scrap metals. Each contains about
250 grams of hydroflourocarvon (HFC) 134a gas in its air conditioning unit. The government
recovers few of these vehicles despite a law banning its deliberate release.

Global Warming Prevention
HFC134a has about 13000 times the global warming impact of carbon dioxide. As such,
capturing it can save almost 200,000 tonnes of CO2 equivalent in annual emissions.
Advocates of a new gas recovery technology say that main auction firms can have cars degassed
within minutes before resale. This will require the owners, i.e. the insurance companies to give
the all clear, however.
Unfortunately, banning the release of HFCs and ozone depleting refrigerants is almost
impossible with thousands of salvaged car buyers, and the insurance industry curtailing the act.
According to auction firms, if the insurance companies wanted to go through the degassing
process, they will work with the companies and facilitate it. The process is a victory for
everyone, as it will save the environment without costing insurers and degassers any money.
With a win-win situation, it comes as a surprise that the insurance industry is blocking the
recovery of harmful greenhouse gases.










Urging the Insurance Industry
Politicians have been prompting the Department of the Environment to urge insurers to give
degassers access to salvaged cars. They want to see greater compliance and require written-off
vehicles to go through the de-gassing process prior to auction.

Greenhouse Gases as Commodity
In response to the criticisms, the Insurance Council of Australia said the gas is a commodity
that forms a significant part of the value of the cars. In addition, the council believes the
degassing process should occur at the end of the recycling chain. It is the responsibility of the
final owner to ensure the collection of the greenhouse gases, in accordance with the relevant
laws.
Despite the arguments of the Insurance Council, the government believes that everybody will
win if insurers gave auction firms access to written-off vehicles. After all, most of the gas will
end up in the atmosphere without intervention.

Sources:
http://www.pickles.com.au/
http://www.environment.gov.au/topics/environment-protection/ozone/licences-and-
reporting/equipment-licences-eqpl-and-lvil
http://www.insurancecouncil.com.au/
http://www.smh.com.au/business/carbon-economy/gas-salvage-from-cars-would-be-win-for-air-
20130618-2ogry.html