A CLOUD LIFTED?

PUBLISHED : Wednesday, 31 January, 2007, 12:00am
UPDATED : Wednesday, 31 January, 2007, 12:00am

Q Which power stations will be eligible?


A All those in Hong Kong and Guangdong burning coal, oil or natural gas, and which have at least one 100-megawatt turbine. Emission reductions achieved before January 1, 2006, will not earn emission credit


Q Who decides the pollution quota for a power station?


A The Hong Kong and Guangdong governments


Q How are emissions monitored?


A Power stations must have installed equipment for continuous monitoring of emissions


Q Will credits bought by Hong Kong power firms count as fixed assets under the scheme of control regulating their profits?


A Don?t know yet


How quota will be traded


1 Seller submits proposed investment in emissions reduction technology and the reduction it is targeting, and required technical data


2 Governments agree how many emission credits to grant seller, and their period of validity


3 Seller submits annual reports showing reductions achieved; governments calculate credits achieved


4 Seller agrees contract with buyer, who needs to purchase credits because its emissions exceed government caps; governments approve contract


5 Seller transfers credits achieved to buyer


 

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