Blue sky policy: Chief Executive Donald Tsang says environmental protection hinges on the recognition and participation of the community.

Environmental protection will be the focus of the Government's negotiations with Hong Kong's power companies over their new Schemes of Control. Their permitted rate of return will be linked to their achievement of emission caps, Chief Executive Donald Tsang said in his Policy Address today.

The Government has imposed emission caps on power plants at Castle Peak, Black Point and on Lamma Island. They will be progressively tightened to meet the 2010 emission reduction targets.

"I stress that we shall not allow these firm targets to be compromised in any way," Mr Tsang said. "The need to protect our environment will be the focus of our negotiations with the power companies over their new Schemes of Control. Their permitted rate of return will be linked to their achievement of the emission caps."

Meanwhile, in light of the World Health Organisation's new guidelines on air quality announced last week, the Environmental Protection Department will form suitable targets and strategies for the future.

Vehicle emissions

The Government will spend $3.2 billion to provide an incentive for the early replacement of 74,000 pre-Euro and Euro I diesel commercial vehicles with more environmentally-friendly Euro IV vehicles.

Pre-Euro vehicle owners will be allowed 18 months, and Euro I vehicle owners three years, to take up the offer. Upon completion of the programme, emissions of nitrogen oxide and respirable suspended particulates in Hong Kong will be reduced by 10% and 18%.

A 30% reduction in first registration tax will be given to people purchasing vehicles with low emissions and high fuel efficiency, subject to a ceiling of $50,000 per vehicle.

A public consultation will be held to gauge opinion on whether legislation should be introduced to enforce the switching off of idling engines.

Other areas

Legislation will be implemented to restrict the contents of volatile organic compounds in printing materials, paints and consumer products.

A trial scheme on waste charging will be launched at the end of the year, followed by a public consultation.

A Product Eco-responsibility Bill, to control waste generation at its source, will also be introduced.

"Hong Kong deserves and can afford a better living environment today. We must secure sustainable development for our future generations and take the lead in addressing regional environmental issues," Mr Tsang said.

"There exists a strong community consensus on the pressing need to take decisive measures to improve air quality and our environment generally. What is important is to focus on the overall strategic direction, set targets for different stages, establish guiding principles and introduce specific policy initiatives for environmental protection. Success hinges on the recognition and participation of the community."