A CLOUD LIFTED?
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