Arrangement for the Implementation of Clean Development Mechanism (CDM) Projects in the Hong Kong Special Administrative Region announced today

The Implementation Arrangements have been drawn up in accordance with the principles of “One Country, Two Systems” and the relevant provisions of the Basic Law, following consultation between the National Development and Reform Commission and EPD. Reference has also been made to the “Measures for Operation and Management of CDM Projects in China” which have been promulgated for national application.

A spokesman for EPD said that the Implementation Arrangements set out the specific process and procedures for Hong Kong companies to collaborate with foreign institutions to conduct CDM projects in Hong Kong. These projects will help further reduce Hong Kong’s greenhouse gas emissions, support the sustainable development goal, and also contribute to achieving the ultimate objective of the United Nations Framework Convention on Climate Change (“the Convention”) to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.

The People’s Republic of China is a Party to the Convention and the Kyoto Protocol (“the Protocol”). After consulting HKSAR Government, the Central People’s Government notified the United Nations to extend the Convention and the Protocol to HKSAR with effect from May 2003. Under the Convention and the Protocol, HKSAR is required to work jointly with the Mainland to fulfil the obligations imposed upon Parties not included in Annex I to the Convention (non-Annex I Parties).

CDM is a mechanism under which Parties included in Annex I to the Convention (Annex I Parties) can fulfill part of their greenhouse gas reduction obligations through cooperation with Non-Annex I Parties on project activities. Its aim is to assist Non-Annex I Parties in achieving sustainable development and in contributing to the realization of the ultimate objective of the Convention, and to assist Annex I Parties in achieving compliance with their quantified greenhouse gas emission limitation and reduction commitments. The core of the CDM is to allow Annex I Parties, in cooperation with Non-Annex I Parties, to acquire “certified emission reductions” generated by activities at project level for the purpose of counting towards achievement of their emission reduction targets. Non-Annex I Parties can in turn obtain the necessary technological and financial means to undertake the emission reduction projects.

Ends/June 6, 2008