The implementation framework of the emission trading pilot scheme for thermal power plants in the Pearl River Delta region has been rolled out, the Environmental Protection Department says.

It sets out the eligibility criteria for participation, the trading mechanism, application procedures and monitoring methods. Details will be made available on the department's website.

The pilot scheme is the result of co-operation between Guangdong and Hong Kong. Through the setting up of the platform, thermal power plants from both sides will participate on a voluntary basis in emission trading. By making use of market forces and the flexibility of emission trading, power plants can be more proactive in coming up with cost-effective emission reduction projects so that air pollutant emissions in the whole PRD region can be reduced.

Both sides will introduce the pilot scheme to thermal power plants and companies in the PRD region, with a view to allowing prospective parties to identify trading partners and draw up emission trading agreements.

In parallel, the two sides will jointly set up the Emission Trading Management Panel to assist the environmental protection authorities of both sides in the management of emission trading matters under the pilot scheme. It will manage the transfer and write-off of emission credits, announce the distribution of emission credits, propose operational rules of emission trading and train personnel.

Environmental protection authorities on both sides will monitor and ensure the smooth implementation of the pilot scheme.