Emissions Reduction by Power Companies
40. A key to our economic success has been the quality and reliable energy infrastructure provided by the two power companies over the years. That said, they are at present the major local source of air pollution. The Government is still negotiating with the power companies over the new regulatory regime. We aim to put it in place by year end. The Government's stance is very clear: we seek to improve local air quality through linking the power companies' permitted rate of return to their achievement of emission caps. At the same time, the new regulatory arrangements must benefit the public through the lowering of electricity tariffs.
Clean Fuels
41. To improve our air quality, the Government has endeavoured to reduce emissions by introducing cleaner vehicle fuels and improving the quality of industrial and power generation fuels. With the progressive installation of desulphurisation equipment and the adoption of cleaner fuels in local power plants, we are confident that the 2010 emissions reduction targets set jointly with the Guangdong Provincial Government can be achieved. To bring about sustained improvement, we propose to legislate on replacing industrial diesel with ultra low sulphur diesel in all industrial and commercial processes. Subject to public consultation, we will require motorists to switch off idling vehicle engines to improve roadside air quality. We will study the feasibility of requiring all vessels plying the harbour to use high-quality fuel. We will also re-examine the option of road pricing using new high technology.
