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Following is a question by Hon Frederick Fung and a reply by the Secretary for the Environment, Mr Edward Yau, in the Legislative Council today (June 10):
Question:
It has been reported that the United States will implement in 2012 an energy saving and emission reduction plan for vehicles. The fuel efficiency standard which is applicable to new vehicles sold in the United States will be raised gradually from the current standard of 25 miles per gallon (i.e. around 10.6 kilometres per litre) to 35.5 miles (i.e. around 15.1 kilometres per litre) in 2016. It is estimated that the United States will save 1.8 billion barrels of oil and reduce greenhouse gas emissions by 900 million metric tons between 2012 and 2016. In this connection, will the Government inform this Council:
(a) whether it has proactively found out the details of the aforesaid plan; whether it will assess the implications of the plan in the future development and application of energy saving vehicles, and if the plan will result in vehicles with lower energy efficiency being dumped at places (e.g. Hong Kong) where the standard concerned is lower;
(b) according to the estimation of the authorities, what benefits in terms of energy saving and emission reduction can be brought about by implementing the aforesaid new standard in Hong Kong; and
(c) whether the authorities will, in the light of the aforesaid plan, gradually raise the energy saving and emission reduction standards applicable to vehicles for sale locally, so as to prompt vehicle manufacturers to engage themselves more actively in the research and development of environment-friendly vehicles (such as hybrid models and those propelled solely by electric power), and prompt vehicle owners to choose to use these environment-friendly vehicles, with a view to achieving reduction in emission and roadside air pollution; if it will not, of the reasons for that?
Reply:
President,
(a)&(b) We have been monitoring closely the development in major automobile manufacturing regions (including the United States (the US), European Union (EU) and Japan) in promoting more fuel efficient vehicles. On May 19, 2009, the US announced a plan to require the vehicles sold by each vehicle manufacturer to achieve an average fuel economy of 35.5 miles per gallon (i.e. around 15.1 kilometres per litre) by 2016. But the new standard applies only to the average of vehicles sold by individual manufacturers over a year. The proposed requirements do not set fuel economy standards for individual vehicle models.
The International Council on Clean Transportation (ICCT), headed by former Chairman of the California Air Resources Board, has analysed the fuel economy and emission reduction programme for motor vehicles to be implemented in the US in 2012 and published its findings on its website. According to the analysis, the fuel efficiency target (i.e. 15.1 kilometres per litre) for new vehicles to be sold in the US in 2016 as set by the US government is still about 20% lower than the average fuel efficiency (i.e. about 18 kilometres per litre) of new vehicles of Japanese and European makes sold in 2008. In other words, the US new standard is less stringent than the present Japanese and European standards.
Currently, motor vehicles sold locally are mainly of Japanese and European makes. As newly registered motor vehicles in Hong Kong are required to meet the EU or Japanese emission standards, Hong Kong has benefited from the relatively more fuel efficient vehicles produced by European and Japanese automobile manufacturers. Since the vehicles of the US are mostly left-hand drive vehicles, and most local car owners use Japanese or European makes, I believe the US Government's new measures will not result in the local market being glutted with vehicles of lower fuel efficiency from the US.
(c) It is our standing policy to adopt the most stringent international vehicular emission standards as far as practicable and introduce appropriate energy conservation requirements. To this end, we will keep a close watch over the latest developments in vehicle supply sources (including Europe and Japan) and assess the feasibility of introducing relevant measures in Hong Kong where appropriate. Although the US government's new fuel economy target does not match the average fuel efficiency of the vehicles produced by European and Japanese car manufacturers, this measure can help promote the development of more fuel-efficient vehicles as the new target is one step closer to being environment-friendly.
All along, we encourage vehicle owners to use environment-friendly vehicles. Starting from April 1, 2007, the Government has been offering a 30% reduction in First Registration Tax of newly registered environment-friendly petrol private cars, subject to a cap of HK$50,000 per vehicle. As at end May 2009, we approved 7,548 for tax reduction applications, representing about 11% of all newly registered motor vehicles. In comparison with Euro IV petrol vehicles, environment-friendly petrol private cars emit about 50% less hydrocarbons and nitrogen oxides, consume about 40% less fuel, and hence emit about 40% less carbon dioxide.
At present, the local market has 29 models of environment-friendly petrol private cars meeting the green tax reduction requirements, including nine hybrid models - a 120% increase over the pre-implementation figure. We will continue to encourage vehicle suppliers to offer more choices of environment-friendly petrol private cars to the public.
In recent years, the performance of electric vehicles' battery has become mature and improved significantly. As electric vehicles do not have exhaust emission, the wider use of electric vehicles can greatly improve roadside air quality and reduce exhaust emission which will benefit pedestrians and shop owners. The Financial Secretary announced in this year's Budget a host of measures to promote the use of electric vehicles in Hong Kong, which include extending the waiver of First Registration Tax on electric vehicles for five years till end March 2014. We have been actively promoting the setting up of vehicle battery charging facilities. We have also set up a steering committee under the leadership of the Financial Secretary to make recommendations on strategy and specific measures for promoting the wider use of electric vehicles. Separately, to foster collaboration with electric vehicle manufacturers, the Government has signed a Memorandum of Understanding with Mitsubishi Motors Corporation and Nissan Motor Co. Ltd. respectively. Discussions with other electric vehicle manufacturers are also underway to actively explore the feasibility of co-operation in promoting electric vehicles.
Ends/Wednesday, June 10, 2009
Issued at HKT 16:16
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