Kitty Tam

Opinion | In reviewing power deals, Hong Kong can seize the chance to cut emissions, limit climate impact

Hong Kong’s upcoming review of the scheme of control agreements with the city’s two power companies presents an excellent opportunity to take drastic action towards a more sustainable future

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A view of CLP Power’s Black Point Power Station in Lung Kwu Tan, New Territories, in 2021. Hong Kong must act quickly to limit the impacts of the climate crisis. Photo: Martin Chan

Kitty Tam

Published: 8:15am, 26 May 2023

The scheme of control agreements, signed between the government and the city’s two power companies, have been instrumental in Hong Kong’s efforts to stabilise energy prices and improve air quality.

To compare electricity price trends, London has experienced a staggering 103 per cent increase over the past two years, while Singapore has witnessed a 41 per cent rise. In contrast, Hong Kong has maintained relatively stable energy prices.

Since the 1990s, the power sector has also made significant progress in improving air quality by reducing the emission of harmful pollutants by 92 per cent.

The recently released final instalment of the sixth assessment report by the United Nations’ Intergovernmental Panel on Climate Change warned once again that rapid reductions in carbon emissions would be needed to avoid global temperature rises of more than 1.5 degrees Celsius. Exceeding this limit would have irreversible and lethal consequences for both humanity and nature.

The interim review of the scheme of control agreements this year presents an excellent opportunity for Hong Kong to take drastic action to reduce emissions. With electricity generation being the primary source of greenhouse gas emissions in Hong Kong, accounting for 66 per cent of total emissions, regulating this through the agreements is crucial.

The agreements can be further enhanced to achieve the deep carbon reductions required to maintain the 1.5 degree C limit. There are several key steps Hong Kong can take to further accelerate its carbon emissions reduction and transition towards a sustainable future.