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Press Release
Technical Memorandum on emission allowances for power plants gazetted
The Government published today (November 7) in the Gazette a "Technical Memorandum for Allocation of Emission Allowances in respect of Specified Licences" (TM) which stipulates the quantities of emission allowances of three air pollutants, i.e. sulphur dioxide (SO2), nitrogen oxides (NOx) and respirable suspended particulates (RSP) for the power generation sector in 2010 and beyond. This is the first TM issued under Section 26G of the Air Pollution Control Ordinance which was amended in July this year requiring the Secretary for the Environment to make such allocation. The annual emissions for the power generation sector in 2010 and beyond will be capped at 25,120 tonnes for SO2, 42,600 tonnes for NOx and 1,260 tonnes for RSP.
"Power generation is the largest local emission source. The Government has imposed and has been progressively tightening up the emission caps on power plants since 2005. The TM is essential in ensuring the achievement of the 2010 emission reduction targets agreed with the Guangdong Provincial Government in April 2002 for improving the air quality in the Pearl River Delta Region," a Government spokesman said today.
According to the TM, the emission allowances will be allocated to individual power plants according to their respective share of the electricity generated for local consumption. This will ensure all power plants will receive the same quantity of emission allowances per unit of electricity generated for promotion of clean production. Provision is also made to allow up to around 1% of the total emission allowances for potential newcomers entering the local electricity market in the future. To cater for the possible change in the power plants' market share in electricity generation, the allocation will also be revised at a frequency of not less than once every three years according to the power plants' updated share in electricity generation for local consumption.
To achieve the 2010 emission caps, both power companies have been embarking upon abatement measures to cut down their emissions, including addition of flue gas desulphurisation systems and increasing the use of natural gas for electricity generation.
"All power plants are required to ensure that their actual emissions do not exceed the emission allowances for the respective types of air pollutant specified. Failure to meet the requirement is liable to a heavy penalty of HK$30,000 per tonne of excessive emissions. Subsequent offences will entail a more severe penalty of HK$60,000 per tonne of excessive emissions plus six months'imprisonment," the spokesman added.
The TM will be tabled at the Legislative Council on November 12 for commencement before the end of 2008.
Ends/Friday, November 7, 2008
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