Air

60. In recent years, the extent of air pollution in Hong Kong has aroused grave concern in the community. We must take vigorous measures to make sustained improvement to air quality. We must first tackle the problem at home. Since 1999, we have introduced measures progressively to control vehicle emissions, and they have started to produce results. Our next step is to introduce in stages Euro IV emission standards for newly registered vehicles from January 2006. The Government will take the lead to reduce power consumption. From January 2006, power consumption in all Government office buildings will be reduced by 1.5% annually, and the Government will take the lead in using ultra-low sulphur diesel in all government projects. The Government will consider using hybrid vehicles that have lower emissions on a wider scale, once more models become available on the market and are judged to be cost-effective. We will encourage the community to do the same. We will issue guidelines to all government drivers, requiring them to switch off engines while waiting. We will appeal to private car drivers to exercise the same self-discipline.

61. To fully achieve the emissions reduction targets in 2010, we have asked the power companies to accelerate the timing of emissions reduction projects, increase the use of ultra-low sulphur coal and use natural gas for power generation as much as possible. In addition, the Environmental Protection Department will progressively tighten the emissions caps during the renewal of the power companies’ specified process licences, to ensure that the 2010 emissions reduction targets are achieved.

62. The Scheme of Control Agreements between the Government and the two power companies will expire in 2008. The Government is considering the views received in the first stage of public consultation to draw up an outline for the future development of the electricity market. In formulating new schemes of control, we will require the power companies to install effective emissions reduction facilities to achieve emissions reduction targets, as a precondition for licensing. In addition, we will ask for the use of renewable energy to generate electricity and the implementation of demand side management. We will explore options to avoid the costs of installing emissions reduction facilities being passed onto consumers as far as possible. We will proceed with the second stage of public consultation on the outline of future development of the electricity market by the end of the year.

63. In terms of air quality in the region, Hong Kong and Guangdong reached a consensus in 2002 on improving air quality in the PRD against targets set for 2010 and have pressed ahead with the Regional Air Quality Management Plan. We have now established a PRD Regional Air Quality Monitoring Network. With a total of 16 monitoring stations, the network can provide comprehensive and accurate information on air quality in the PRD region. The two governments have agreed to make arrangements for reporting daily to the public the PRD Regional Air Quality Index from the fourth quarter this year. Concerted efforts within the community can provide substantial impetus to clean air initiatives. For instance, I know that our business community has taken the initiative to sign a Clean Air Charter. Details of the Pilot Emissions Trading Scheme among power plants in the PRD, jointly undertaken by Hong Kong and Guangdong, are expected to be finalised in 2006. The scheme will allow power plants to look for trading partners and enter into emissions trading contracts. The two sides are working towards the agreed emissions reduction targets in 2010, to significantly improve the air quality in the PRD.