To achieve the 2010 emission reduction targets agreed between Hong Kong and Guangdong, the Government will impose caps on the total emissions of the power companies, require they maximise use of natural gas and develop renewable energy.

Secretary for the Environment, Transport & Works Sarah Liao told legislators today the Government, in formulating a development framework and regulatory arrangements for the future electricity market, will consider how to reduce power generation emissions and develop renewable energy to achieve sustainable development.

She said stage one of the public consultation on the future development of the post-2008 electricity market ended April 30. The Economic Development & Labour Bureau will consider the views received, map out the development framework and consult the public again later this year.

Turning to the introduction of new environmental improvement technologies, Dr Liao said the following measures are being considered:

* earlier implementation of Euro V specifications for motor vehicle fuel, and monitoring of the progress of the biodiesel study in Japan;

* new exhaust emission reduction devices, such as continuously regenerating traps;

* development of vehicle emission monitoring technologies, like remote sensors targeting diesel vehicles;

* urging power companies to install more de-sulphurisation systems and low-NOx burners to reduce sulphur dioxide and nitrogen oxide emissions;

* studying the membrane biological filter and reverse osmosis, and implement a demonstration scheme on reclaimed water uses in North District; and,

* studying hybrid technology for sewage treatment and membrane biological reactor technology.

Dr Liao said: "We adopt an open and pragmatic attitude towards all technologies conducive to the protection of the environment and the prevention and reduction of pollution, with key emphasis on their cost-effectiveness."