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