********************************************************
Following is a question by the Hon Emily Lau and a written reply by the Secretary for the Environment, Mr Edward Yau, in the Legislative Council today (November 21):
Question:
The Administration plans to tighten progressively the caps on the total emissions of air pollutants from power companies. It has indicated that legislative amendments will be introduced to stipulate the caps on the total emissions of air pollutants from power companies in Hong Kong for 2010 and beyond. In this connection, will the Executive Authorities inform this Council whether:
(a) they will stipulate the caps on the total greenhouse gas emissions from power companies by way of legislation; if not, of the reasons for that;
(b) it is a common practice among the international community to stipulate the caps on the total emissions of air pollutants from power companies by way of legislation; if so, of the details; and
(c) they have compared the merits and demerits of regulating the caps on the total emissions of air pollutants from power companies by way of legislation and by way of agreements; if so, of the outcome?
Reply:
Madam President,
(a) To improve Hong Kong's air quality by strictly controlling the emission of air pollutants from power plants, the Government proposes to introduce legislative amendments to stipulate the total emission caps of three air pollutants (namely sulphur dioxide, nitrogen oxides and particulates) from power plants for 2010 and beyond. In deciding on the types of air pollutants to be placed under control and their respective emission caps, the availability of mature and practicable emission reduction technology is an important consideration. The emission of greenhouse gases from power generation mainly stems from the burning of fossil fuels. In Hong Kong, over 50% of the electricity is generated from coal burning. At present, there is no mature technology in the world that could reduce, capture and store the greenhouse gases discharged from the burning of fossil fuels. Therefore, greenhouse gas emissions from power generation can only be substantially reduced by changing the fuel mix, e.g. substantial reduction in power generation by coal burning, increase in using natural gas or switching to nuclear energy. However, changing the fuel mix for power generation involves important and complicated issues such as energy supply, stability in power supply and electricity tariff. More in-depth studies and discussions are necessary before a decision can be made.
(b) It is a common international practice to regulate air pollutant emissions by way of legislation. The "Sulphur Dioxide Allowance Program" and "Nitrogen Oxide Allowance Program" of the United States, as well as the "National Emissions Reduction Plan" of the United Kingdom are examples where the regulated facilities, the total emission caps or the calculating methods for relevant air pollutants are stipulated by legislation.
(c) Stipulating the total emission caps of air pollutants from power plants by way of agreements will give the regulatory authority greater flexibility in considering all the relevant factors when setting the caps. On the other hand, introducing statutory control will enhance the transparency, thus enabling the public, the power companies and the legislature to have a better understanding of the relevant factors that the Government has taken into consideration when setting the emission caps. This will make the emission caps more acceptable to different sectors of the community and ensure more effective implementation. Moreover, the proposed legislative amendments will allow the power plants to meet the emission caps through emissions trading. Apart from regulating air pollutant emissions from power plants by way of legislation, we can also offer financial incentives under the Scheme of Control Agreement (SCA) to encourage the power companies to comply with the total emission caps. In this connection, the Government plans to introduce a provision under the new regulatory arrangements to link the power companies' permitted rate of return to their achievement of the emission caps upon the expiry of the existing SCAs.
Ends/Wednesday, November 21, 2007
Issued at HKT 15:33
NNNN
