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E. Quality Environment
51. Hong Kong deserves and can afford a better living environment today. We must secure sustainable development for our future generations and take the lead in addressing regional environmental issues. There exists a strong community consensus on the pressing need to take decisive measures to improve air quality and our environment generally. I need not repeat the rationale here. What is important is to focus on the overall strategic direction, set targets for different stages, establish guiding principles and introduce specific policy initiatives for environmental protection.
Strategic Objectives
52. Environmental protection is a long-term undertaking. First, we must adopt a forward-looking strategic approach by setting improvement goals for different stages while allowing for future new technology-induced improvements. To reduce air pollution, we have formulated the PRD Regional Air Quality Management Plan. This plan, prepared in partnership with the Guangdong Provincial Government, aims to achieve specific emissions reduction targets by 2010. We have now set up a 16-station air quality monitoring network in the PRD. Based on the data collected, the PRD Regional Air Quality Index is released everyday on the Internet to keep the public informed of the actual regional air quality. The data collected will also help us assess the effectiveness of our pollution reduction measures. The Guangdong Provincial Government has been strengthening its hardware and software to reduce pollution. Measures being pursued include installing desulphurisation systems, using natural gas for power generation, and striving to speed up the introduction of National III motor vehicle emission standards (on a par with Euro III standards) in PRD cities.
53. In Hong Kong, we have imposed emission caps on power plants at Castle Peak, Black Point and Lamma Island. These emission caps will be progressively tightened to meet the 2010 emission reduction targets. I stress that we shall not allow these firm targets to be compromised in any way. We require power plants to regularly review and update their pollution control technology by the best practicable means. The need to protect our environment will be the focus of our negotiations with the power companies over their new Schemes of Control. Their permitted rate of return will be linked to their achievement of the emission caps.
54. Vehicle emissions account for some 25% of local air pollution. In the long run, we will continue to follow closely the latest Euro standards to ensure that we adopt new fuels and technology to reduce polluting vehicle emissions.
55. All of us will be able to help make a difference to our air quality if we are committed to energy saving. The Government has been making vigorous efforts to promote building energy codes (BECs). Newly designed government buildings have fully complied with the BECs. We are also replacing less energy efficient equipment in older government buildings as well as strengthening daily housekeeping practices by Government departments to improve overall energy efficiency. The Government will adopt the concept of greening of rooftops whenever practicable in the design of new buildings. We are studying the wider application of the concept with a view to encouraging more projects to adopt this approach.
56. In preparing for future development, we have embarked on a review of our Air Quality Objectives. The Environmental Protection Department, in light of the World Health Organisation's new guidelines on air quality announced last week, will examine the local situation and come up with suitable targets and strategies for the future.
57. For wastewater and solid waste management, we have made steady progress in implementing our long-term strategies and initiatives. The Harbour Area Treatment Scheme started in the early 1990s and we expect Stage 2A to be completed in 2014. The Policy Framework for the Management of Municipal Solid Waste for 2005-2014, published last December, is a comprehensive plan covering the reuse, recycling and reduction of solid waste, together with a timetable for legislation on Producer Responsibility Schemes and waste charging. Since the launch of the charging scheme on construction waste early this year, there has been a 36% reduction in construction waste going to landfills.
Guiding Principles
58. Proper disposal of waste entails substantial recurrent expenditure. To alleviate the burden on the community as a whole, we must be guided by the "polluter pays" principle. The experience of some mature economies shows that the most effective way to reduce waste and conserve natural resources is to strictly enforce the "polluter pays" principle. To achieve the desired outcome but also to minimise impact, we may progressively take small, incremental steps to impose charges in light of the prevailing situation.
59. While upholding the "polluter pays" principle, the Government should provide appropriate incentives in areas necessary to achieve environmental benefits. Many old vehicles are highly polluting and it is in the public interest to accelerate their replacement. In this regard, I propose that the Government spend $3.2 billion to provide an incentive for the early replacement of 74 000 pre-Euro and Euro I diesel commercial vehicles with Euro IV vehicles. We will allow pre-Euro vehicle owners 18 months and Euro I vehicle owners three years to take up the offer. Upon completion of this programme, we envisage that emissions of nitrogen oxide and respirable suspended particulates in Hong Kong will be reduced by 10% and 18% respectively.
60. We also encourage people to reduce pollution through the use of new technologies. A 30% reduction in first registration tax will be given to people purchasing vehicles with low emissions and high fuel efficiency, subject to a ceiling of $50,000 per vehicle.
(To be continued)
Ends/Wednesday, October 11, 2006
Issued at HKT 11:59
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