Press release For immediate release Green Groups Demand Government to Regulate CO2 from Power Plants Hong Kong, 27th November, 2007 Green group representatives from Friends of the Earth, Greenpeace, Greeners Action, Green Sense, WWF Hong Kong and Clear the Air, along with “Carbon Dioxide Foundlings” protest to the Environment Bureau today over the government’s negligence to cap greenhouse gas emissions from power plants when formulating the new Scheme of Control Agreement (SOC), further worsening global warming. The environmental groups issue a joint declaration which urges the government to limit carbon dioxide emissions from power plants, the biggest local source of greenhouse gas emissions, and to impose stricter measures to force them for energy saving. The representatives show a banner stating “Regulate CO2 from Power Plants”, and present “Carbon Dioxide Foundlings” resting in cartons to officials of the Environmental Bureau. The government is urged “to foster the abandoned carbon dioxide babies” by restraining greenhouse gas emissions from power plants when formulating the new SOC, as a move to combat climate change. Spokesperson for the green alliance and Greenpeace’s Climate and Energy Campaigner Frances Yeung said, “While countries around the world are actively fighting global warming, the SAR Government simply allows carbon dioxide emissions to damage the climate without regulating. The Government should not shirk the responsibility of regulation.” Power plants are the largest local source of greenhouse gas emissions, which account for about 70% of carbon dioxide emissions (the major warming gas) in Hong Kong. However, the Government only regulates emissions of sulphur dioxide, nitrogen dioxide and respirable suspended particulates, excluding carbon dioxide. Energy saving is the most cost-effective means to control greenhouse gas emissions and improve air quality. However, the Government suggests that it may propose in the new SOC carrots to power plants for improving energy saving and demand side management, which however are not compulsory and only serves as foil. As crisis of global warming is escalating, the green groups press for the government to seize the opportunity of SOC renewal and regulate the giant greenhouse gas emitters, which the agreement will determine the power plants’ impacts to the environment in the next 10 to 15 years. The alliance urges the government when formulating the new SOC, should: 1. Cap power plants’ carbon dioxide emissions and deduct profit of the plants if emissions surpass the limit 2. Impose target for reducing energy consumption and saving energy which should include: A concrete and aggressive energy saving target, at least doubling the one in the former agreement with power companies in electricity demand-supply management scheme1; Precise economic incentives or profits calculations to encourage power companies to participate actively in energy saving; A long-lasting energy saving plan. The government should avoid implementing improvident or short-term plans to fool the public; A respective sanction mechanism if the power companies fail to meet the energy saving target. Escalating Global Warming Crisis Demands Regulation to Power Plants Joint Declaration of Green Alliance to the New Scheme of Control Agreement While countries around the world are actively confronting global warming, the HKSAR Government continues to adopt an ostrich policy without handling the climate crisis seriously. The most obvious example is that when the Government negotiates the new Scheme of Control Agreement (SOC) with the power companies, carbon dioxide (the major gas causing global warming) is being ignored. Power plants are the largest local greenhouse gas emitters, accounting for about 70% of carbon dioxide emitted. Yet, the Government turns a deaf ear to the problems and allows the electricity plants to keep destroying the climate. The new SOC will determine the power plants’ impacts to the environment in the next 10 to 15 years. The Government should seize this opportunity and force the power companies to act to relieve global warming. 1 In May 2000, the Government signed an agreement with the two power plants respectively. The agreement stated that economic incentives can encourage industrial and commercial consumers to utilize energy saving products or install some energy saving facilities. It is estimated that under this agreement, 170 million kWh of electricity can be reduced per year. 1. Capping Carbon Dioxide Emissions The Government emphasizes that profit of the power plants will be deducted if they exceed the emission caps. Nevertheless, the Government only restricts their air pollutants including sulphur dioxide, nitrogen dioxide and respirable suspended particulates. Carbon dioxide is unregulated. Government officials occasionally cite regulation of emissions from power plants as one of the means to tackle global warming. Yet, the claim is misleading as cutting down air pollutants does not mean reducing greenhouse gases. For instance, after installing the flue gas desulphurization, power plants can reduce emissions of sulphur dioxide from coal-burning, but without reducing carbon dioxide emissions. In fact, carbon dioxide emissions from electricity plants in 2005 increased by about 20% compared to the 1990 level.2 The green alliance presses the Government to regulate carbon dioxide emissions from power plants. The following steps should be adopted: Amend the Air Pollution Control Ordinance, adding carbon dioxide as an air pollutant as a step to regulate this greenhouse gas by legal means. Add terms in the new SOC which requires power plants to adhere to carbon dioxide emissions cap. Otherwise, profits should be deducted. 2. Mandatory Participation in Energy Saving The Government claims that two “deductions” should be achieved in formulating the new SOC. The first is to reduce profit of power plants and lower electricity bills in order to benefit the public. The second deduction is to cut the air pollutants from power plants in a bid to improve air quality3. Energy saving has long been recognized as the most speedy and cost-effective way to reduce greenhouse gas emissions and improve air quality. Although the Government suggests to propose in the new SOC to “provide incentives to power plants and encourage them to utilize renewable energy, improve energy saving, and implement demand side management”, these suggestions are not compulsory and only serve as foil. A comprehensive energy policy should include two areas: energy supply (e.g. promoting the use of renewable energy) and energy demand (e.g. promoting energy efficiency). Nevertheless, the Government has long missed the urgency to promote energy saving. Once the electricity charge is lowered, it is likely to induce the public to consume more electricity and thus produce more greenhouse gases as well as air pollutants. 2 The total carbon dioxide emissions from electricity generation increased from 23.58 million tones in 1990 to 28.03 million tones in 2005. 3 Legislative Council: Speech by the Secretary for the Environment on the Motion of Thanks in Respect of Policy Address (Chinese version only), HKSAR Press (Chinese version), 25 October 2005. http://www.info.gov.hk/gia/general/200710/25/P200710250211.htm The green alliance requests the Government to include in the new SOC, a target for energy saving, and work out the following: A concrete and aggressive energy saving target, at least doubling the one in the former agreement with power companies in electricity demand-supply management scheme4; Precise economic incentives or profit calculations to encourage power plants to actively save energy; A long-lasting energy saving plan. The government should avoid implementing improvident or short-term plans to fool the public; and A respective sanction mechanism if the power companies fail to meet the energy saving target. Joint Declaration by: Friends of the Earth Greenpeace Greeners Action Green Sense Clear the Air WWF Hong Kong 27th November 2007 4 In May 2000, the Government signed an agreement with the two electricity plants respectively. The agreement stated that economic incentives can encourage industrial and commercial consumers to utilize energy saving products or install energy saving facilities. It is estimated that under this agreement, 170 million units of electricity can be reduced per year.