LC: Speech by Acting SEN on motion on Fifth Technical Memorandum for Allocation of Emission Allowances in Respect of Specified Licences (English only)
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     Following is a speech by the Acting Secretary for the Environment, Ms Christine Loh, in response to the motion moved by the Hon Andrew Leung under Rule 49E (2) of the Rules of Procedure on the Fifth Technical Memorandum for Allocation of Emission Allowances in Respect of Specified Licences in the Legislative Council meeting today (June 23):

Mr President,

     I am grateful to the Honourable Kenneth Leung, the Chairman of the Subcommittee on the Fifth Technical Memorandum for Allocation of Emission Allowances in Respect of Specified Licences, and also for other (Subcommittee) members who spent a lot of time on the detailed examination of the Technical Memorandum.

     The Honourable Kenneth Leung was absolutely right to highlight three of the key points that were raised during the Subcommittee's scrutiny. The first point he brought up was about PM2.5. And as I said, we agree with him entirely and at this time, it is not possible for us to put a cap on PM2.5 emissions. This is also the case of the United States, and in the case of the European Union. However, of course, technology developments do advance, and we will keep a close watch on those developments.

     The second point that the Honourable Kenneth Leung brought up was about carbon emissions. I think it is well known that the Government is looking at a target beyond 2020 to 2030. It is inevitable for us to make a substantial decarbonisation in Hong Kong that we will have to look at further retirement of our coal-fired power generation fleet. On the point about carbon emissions, we are planning to put out a new carbon (emission) target for Hong Kong for 2030. During that time, we will have to consider what we do with the remaining 25 per cent of the electricity that comes from our coal-fired generation.

     The third point that the Honourable Kenneth Leung brought up was about renewable energy. Mr President, Members will remember that last year we put out a consultation paper about the electricity market and the future development of the electricity market. On that point, all the issues that I think the Honourable Kenneth Leung brought up about how to restructure the energy sector, so that we could have a higher level of renewable energy, have been addressed. And since I think it is generally known that we are in the middle of negotiations with the two power companies on the Scheme of Control Agreements for beyond 2018, I won't go into any details there.

     The last point I want to make is about energy efficiency. Often we talk about the importance of energy saving, and on this, we have set a target. We know some people think it's not an ambitious enough target, but actually I must say it is, because it requires us that by 2025, to reduce 6 per cent the actual reduction in energy consumption in Hong Kong, which is very very substantial. I just want to say that Hong Kong, a very high density city, a very busy economic centre, our use of energy in this city is actually very very large. But in any case, I think we have no problem with Members of the Chamber who obviously desire us to go much further. The Government sets a target, we work on our own infrastructure, we are working through with all the departments right now to look at energy saving, to look at carbon emissions and reduction. And we also ask the business sector and the general community to work together with us to save energy.

     The Honourabe Kenneth Leung talked a lot about what he would like to see in the future, in the Scheme of Control Agreements and in carbon reduction. Since the Technical Memorandum essentially seeks to deal with air pollution from our existing power plants here, I won't go any further on the future system that we are looking at in terms of climate change, and in terms of switching away from burning coal. If I may be excused to go further into those issues, I will just end here, Mr President.

Ends/Thursday, June 23, 2016
Issued at HKT 17:23

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