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The Environment
Climate Change
Measures by Hong Kong
The Paris Agreement, which came into force in November 2016, applies to Hong Kong. The government is fully committed to joining hands with the international community in combating climate change and, in January 2017, released Hong Kong's Climate Action Plan 2030+, which sets out a series of key measures on mitigation, adaptation and resilience. The Chief Secretary for Administration chairs the Steering Committee on Climate Change to steer and coordinate the actions of bureaus and departments.
Carbon Intensity Reduction Target
Hong Kong targets reducing its carbon intensity by between 65 per cent and 70 per cent by 2030 compared with the 2005 level. To do so, most of the coal-fired generating units, which are due for decommissioning by 2030, will be phased down and replaced with cleaner energy sources. The government will also promote renewable energy, waste-to-energy conversion and energy efficiency and conservation, and develop an efficient and environment-friendly public transport system.
From 2017, bureaus and departments are required to improve carbon management by conducting regular carbon audits on major government buildings that use more than 500,000 kilowatt-hours annually, with a view to disclosing their carbon emission data and exploring ways of carbon reduction. In parallel, the Environment Bureau has published a set of nine carbon audit guidebooks covering different types of premises, to help bureaus, departments and the private sector carry out carbon audits. For the private sector, it operates a Carbon Footprint Repository to encourage regular carbon auditing. As at December, 79 listed companies had disclosed their carbon management experiences and practices through the repository's website. The government also worked with Hong Kong Exchanges and Clearing Limited to promote carbon audits among listed companies.
Energy
Electricity
The Hongkong Electric Company Limited (HK Electric) supplies electricity to Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma. CLP Power Hong Kong Limited (CLP Power) supplies Kowloon and the New Territories, including Lantau and several other outlying islands. The electricity supply to consumers is 50 hertz alternating current, while the voltage is 220 volts single-phase and 380 volts three-phase.
Both power companies are investor-owned. The government monitors them through mutually agreed Scheme of Control Agreements. These require the companies to seek the government's approval for certain aspects of their development plans, including projected basic tariff levels, to ensure the continued supply of reliable, safe and efficient electricity at reasonable prices. The agreements do not give the companies any exclusive rights to supply electricity. They are not franchises, nor do they define a supply area for either company or exclude newcomers to the market. The permitted rate of return of the power companies on their average net fixed assets under the agreements is 9.99 per cent.
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