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Civic Exchange

Yau Wrong On Emission Caps

Updated on Jun 06, 2008 – SCMP

I refer to the report (“Audrey Eu throws down gauntlet over environment chief’s carbon dioxide stance”, June 3).

The challenge by Ms Eu was made at the bills committee meeting discussing the Air Pollution Control (Amendment Bill).

Ms Eu wants a “public debate on why carbon dioxide could not be included” in the bill.

Secretary for the Environment Edward Yau Tang-wah told the meeting: “There is no country, as far as we know, where a similar emissions cap is devised for carbon dioxide.”

I was stunned by this comment. With more than 25 countries involved, covering more than 10,000 installations, the European Union Emission Trading Scheme provides more than enough examples to choose from.

Emissions trading is an expanding financial market allowing those with emission caps placed upon them to achieve reductions in the most cost-effective manner.

The degree of importance that this government places on air quality for its citizens is highlighted by a recent conference on emissions trading held by Civic Exchange which was oversubscribed by business, commercial and interested community leaders but which only a single government representative signed up for.

It is still to be confirmed if in fact the representative did turn up.

Shane Spurway, Mid-Levels

Getting Rail Travel Back On Track

Story Highlights

  • Rail companies and urban planners often cite the green credentials of trains
  • Building energy efficient trains is not cheap and can take time to recoup costs
  • Making travel affordable as well as efficient is key to attract travelers

By Rachel Oliver – For CNN – 2nd June

(CNN) — The first ever U.S. National Train Day on May 10 was a celebration that may have passed many Americans by. But why create a day to celebrate trains?

According to Amtrak, which was behind the event, trains are more energy-efficient than cars or planes so should be celebrated and actively encouraged as the ideal mode of transport among today’s travelers.

This isn’t the first time that the train has been pitched as one potential answer to the world’s transport-related environmental woes.

In June last year, Greenpeace went as far as offering free train tickets to British Airways (BA) passengers in protest at the increasing number of short-haul flights the airline was offering out of the UK.

And when Germany declared it wanted to become the most energy-efficient country in the world by 2020, one of the ways it said it was planning to do this was by encouraging its citizens to ditch the plane and take the train.

The Nature Conservancy, which calls flying “the opposite of green” on its web site, says by opting for train journeys your passenger mile emissions could be anywhere from 4 percent to 15 percent of those you would generate by flying the same distance, depending on the length of the trip and the efficiency of the train service.

According to Eurostar, by taking one of their cross-Channel trains between London and Paris or Brussels, you would be emitting 10 times less carbon dioxide than if you flew.

“Definitely, if used as a new basis of transport, trains use less energy and are more efficient at reducing pollution,” says Professor Shen Jianfa, who works in the Department of Geography and Resource Management at the Chinese University of Hong Kong (CUHK).

“But you have two things to consider — the cost of transport and its efficiency if compared to bus or truck. For long distances rail is more efficient.”

Some not buying the green ticket

But some warn that taking the train does not always equate to a completely green option.

The Cato Institute recently argued that the majority of America’s rail transit lines as a whole are less energy-efficient on a passenger mile basis than you might think.

In an April 2008 report Cato said the U.S.’s train lines “generate more greenhouse gases than the average passenger automobile,” before adding,”rail transit provides no guarantee that a city will save energy or meet greenhouse gas targets.”

It cites one main problem as “feeder” bus operations that are set up to carry passengers between train stations or on to their final destinations. When they are operating at low capacity, these buses can counteract any environmental gains you may have made with train travel, Cato says.

But CUHK’s Shen argues that having a half empty feeder bus has to be preferable to all those passengers using their cars instead.

“You have to provide a shuttle bus to get people home, but this depends on the population density of the city,” he says.

“If people are living in a large area with low density then a railway line can’t reach all the people. There has to be a point where it is more efficient to have feeder buses.”

Cato also cites the issues of constructing and maintaining rail lines, which it says would take “many decades of energy savings” to recover the original energy costs involved.

And then there is the issue of what fuel you use to power the train in the first place.

The U.S. Environmental Protection Agency (EPA) recently took trains and ships to task by imposing stringent new emissions standards that will now force up to 21,000 diesel-powered trains to slash their soot emissions by 90 percent and nitrogen oxide emission by 80 percent.

According to the EPA web site, diesel-powered trains “are significant contributors to air pollution in many of [the country’s] cities and ports.”

In Asia, however, the train systems tend to be powered by electricity, making them by and large a cleaner option than equivalent train journeys in the U.S.

That being said, where that electricity is coming from is still a cause for concern, Shen says.

“Along the line [in China] it is electric but obviously you need to know where the electricity is coming from,” he says.

“For China as a whole they rely very much on coal.”

All aboard – if the price is right

Keeping train fares low is key to making any train service a success and government subsidies are key here, argues Christine Loh, chief executive of Hong Kong independent think tank, Civic Exchange.

“The government should pay for the construction cost of the rail line so that fares will be kept low,” she says, referring to Hong Kong’s need for a more extensive rail system.

Because trains, particularly clean ones, don’t always come cheap.

Japan recently laid claim to the world’s first diesel hybrid train, but its creators, East Japan Railway told the AP news service that the Kiha 200 train cost $1.7 million to build — twice as expensive as their standard trains.

And that’s small change when you look at the cost of Shanghai’s first ever maglev train – a train that literally glides over the track without making contact, powered by magnetic levitation technology.

As maglev trains cannot travel along traditional rail tracks, new ones have to build – and in the case of the 30 kilometer line between Shanghai’s Pudong Airport and the city center – at a cost of $1.2 billion, according to China Daily.

Cost is the main reason Shen believes more subway or overground lines have been slow to appear in Hong Kong, a small high density city with one of the lowest car ownership rates in the world – but which still suffers from high levels of pollution.

“The government has a strategy on paper to build more rail lines but building more MTR lines is very expensive compared to highways,” Shen points out.

But train lines are becoming a necessity for growing Asian cities that are becoming more crowded with more traffic congestion and pollution.

“In places like Beijing and Shanghai, we are seeing an increase in private cars but over the last few years the city governments have been realizing that they can’t rely on cars for transport because of the congestion,” Shen says.

“China is being very ambitious in expanding the rail network. In the next 10 years the rail network will be doubled,” he adds, citing the government’s plans to build an express rail between Beijing and Shanghai in addition to one between Hong Kong and Guangzhou.

“Efficient, cheap and extensive rail systems are attractive to large cities,” adds Loh.

And if you want to see an example of that in action, she says look no further than Tokyo.

“This is a large metropolis that is densely populated. The government’s choice was to build an extensive subway/rail system that is cheap and efficient to ensure it is the backbone of the public transportation system,” Loh explains.

“Buses are complementary to the rail system, and taxis are extremely expensive. Driving to work is prohibitive for most workers. Japan also makes sure old vehicle models are retired periodically so there are no highly polluting old vehicles on the roads.

“This package of measures work,” says Loh.

Improving Air Quality For The Sake Of People’s Health

A clean sweep

Updated on May 01, 2008 – SCMP

Joining things up into a coherent whole is never easy but it is a mark of competence. First of all, you need to have a clear focus of what the endgame is and then you need to understand what needs to be done to get there. The rest is about implementation.

New reports last week noted Hong Kong’s very poor roadside air quality. Despite a decade of effort, conditions remain a daily threat to the public health of this city’s people. Government spin focuses on “achievements” – that there have been some reductions in pollutant levels, based on levels of a certain year in the past. In reality, absolute levels remain very high and, when compared with the World Health Organisation’s recommended air quality standards, Hong Kong’s street-level air quality is positively dangerous.

Instead of recounting how well officials rearranged the deck chairs on the Titanic, the government may want to ask itself how it could have averted the roadside air crisis over the past decade. There is no point repeating what it has done – we know officials switched taxis and most minibuses from diesel to LPG, and ultra-low-sulphur diesel has been made available, for example – but the measures have not been enough. So, with the benefit of hindsight, we should ask: if our officials had to do it all over again, what other steps would they have taken?

The answer is that they should have taken numerous, related steps that affect roadside air quality. If the government wants to have any chance of cleaning up our roadside air, it needs to not only focus on what comes out of exhausts but also to change direction. Measures include taking the oldest, most-polluting trucks off the road, and converting buses running along urban routes to run on natural gas.

A more challenging solution is to reduce vehicles on our roads altogether. This means investing in railways, which is finally happening now but, until relatively recently, the emphasis had been on building roads. It also requires officials to co-ordinate road and rail interchanges so people opt to take the train into denser urban areas, and fewer empty buses. That kind of co-ordination requires a clear focus on the public health endgame.

That hasn’t happened, because officials were focused elsewhere. Their priority was roads. Even though some corner of the bureaucracy knew that Hong Kong must follow a rail-led public transport policy – which had been articulated – it was not followed in practice because some other parts of the administration built roads and were sympathetic to providing cheap road transport. The government could just as well have provided cheaper rail transport by subsidising rail construction to keep fares down, which it seems to be finally doing.

The city’s topography poses another challenge. Urban areas are dominated by tall buildings and narrow streets with heavy traffic. Emissions from vehicles gets trapped in “street canyons” that become extremely polluted and endanger public health. The solution for cleaning the city air should have involved a change in urban planning, in which vehicles were removed from the picture through massive pedestrian schemes. Again, officials have been too timid. There have only been small-scale schemes here and there. Instead, officials have allowed the “walled-buildings” phenomenon to spread across the city. In addition to street canyons, we now have massive buildings blocking air circulation in many places.

The failure in all these policy areas to fight roadside pollution is the reason for this crisis. Our officials continue to avoid admitting publicly that our roadside air quality is extremely poor. If they did, pressure would mount on them to take action. But they cannot connect all the dots for what needs to be done because there is no policy focus or priority for improving air quality for the sake of people’s health.

Things won’t get better until officials adopt a new outlook. When will our political leaders take the lead and speak out, for the sake of our health?

Christine Loh Kung-wai is chief executive of the think-tank Civic Exchange

cloh@civic-exchange.org

A Conversation with Christine Loh

A conversation between Conde Naste Traveler (CNT) and Christine Loh (Loh): 

Published April 2008 Conde Naste Traveler

CNT:How scary are China’s environmental problems?
Loh: They are very serious. The degree of degradation threatens human as well as ecological health.

CNT: Does China have the will to clean up its environment?
Loh: The government has shown more commitment in recent years. There are mandatory national and provincial energy-efficiency targets. To ensure that they are taken seriously, the Communist party secretary—the highest authority in a location—is held responsible.

CNT: How do China’s environmental policies compare with those in the United States?
Loh: China has the opposite issues from the United States. In America, you’ve got states like California moving ahead on environmental policies but a federal government that is a problem. In contrast, China’s central government has done a lot, passing environmental laws and setting standards for industry. The problem is at the local level. People have this idea of splendid central control, but it doesn’t exist anymore.

CNT: They’ve lost control of the local economies?
Loh: State-owned enterprises are all told to meet energy-efficiency standards. It’s much harder to control private businesses because regulation can’t keep up.

CNT: Millions of Chinese peasants still live on a couple of dollars a day. They want development, they want cars. Don’t they have a right to things we enjoy in the West?
Loh: It’s a challenge. The environmental folks are working themselves to death. On the ground it’s a different story—people want to make money.

CNT: If the government is so committed to the environment, why do activists get harassed? Wu Lihong, winner of the Condé Nast Traveler Environmental Award last year, is in jail for what looks like political reasons [see “Environmental Award,” November 2007].
Loh: Activists run into local vested interests and get into terrible trouble. And in China, individual rights are still not adequately protected.

CNT: This summer will be the country’s biggest tourist event ever: the Olympics. Can China pull it off without the athletes getting sick from the air?
Loh: Athletes and their coaches are looking at ways to deal with the pollution in Beijing. Some may park the athletes in Korea or Japan and only fly them in for competitions. Several athletes have announced that they will run fewer races.

CNT: Are there still pristine places to visit in China?
Loh: In Yunnan, Guizhou, and Inner Mongolia, there are many beautiful, untouched places.

CNT: As a Hong Kong environmentalist, what role can you play in China?
Loh: China’s richer areas can help the less developed areas so that they can come up with ways to monitor carbon emissions more effectively.

CNT: Why has Hong Kong failed to deal with pollution? You can hardly see across the harbor these days.
Loh: The government seems to be in total denial. Any idiot can tell that pollution is a problem. But the government doesn’t like to admit it because it reflects badly on them. If there were real democracy and the government were accountable to the people, it would be a different story.

The Bio
Claim to Fame: Asia’s best-known environmentalist; democracy advocate; former Hong Kong legislator.
Founder: Civic Exchange, a Hong Kong-based public policy think tank.
Co-chair: Human Rights in China.
Bridge Builder: Working with Western organizations (G8+5 Climate Change Dialogue and C40 Cities Climate Leadership Group), Loh explains China’s attitudes, while interpreting Western positions in China.
Current Obsession: Convincing Asia’s developing countries that environmental protection is not a luxury.

Travel Log
Last Trip: Bali, for the UN Climate Change meetings.
Next Trip: Sweden, for a Tällberg Foundation meeting on social innovation; and New York, for a Human Rights in China meeting.
Dream Trip: Brazil, to see the forests.
Best Trip: To a small English village for my nephew’s christening. I almost missed the plane but was upgraded to first class; then family and fun in London.
Should we travel less? When possible, it’s best to cut down business travel.

Cleanup Is No Breeze

Updated on Mar 06, 2008 – SCMP

Hong Kong has seen some of the city’s worst ever air pollution over the past few days. Readings for various pollutants have been extremely high, and some parts of the Pearl River Delta on Monday recorded the highest pollution levels (Grade V) even by mainland standards. These were well above the air quality guidelines set by the World Health Organisation.

The government blamed light winds for the poor air quality. In other words, if there had been more wind, the pollution would have been blown away, rather than enveloping us.

The truth is that the region’s air quality has become extremely poor. Day in, day out, emissions are so high that, without stronger winds to dissipate the pollution, we suffer acute conditions. Indeed, most of the time, we are already breathing chronically bad air. The problem is not the wind, it’s the pollution.

The reality of extremely bad air pollution becomes undeniable when the winds are light; the bad stuff just hangs around in the air. So, just to repeat: the reason for our extremely bad air is not the light winds, it’s the high pollution levels.

In 1998, the government acknowledged that air pollution was a major and pressing problem. It said that “we should be satisfied with nothing less than a world-class environment”. The administration concluded that it needed to focus on two key areas: first, reducing roadside air pollution – something that is within Hong Kong’s control; and, second, working with Guangdong to reduce regional air pollution.

Over the next few years, the government had taxis switch from using diesel to liquid petroleum gas, and minibuses have also started to use LPG. It has offered a concessionary duty rate on ultra-low-sulfur diesel, for diesel vehicles – mostly buses and trucks. Owners have been encouraged, through subsidy schemes, to add particulate traps; and any new vehicles purchased have to meet the latest Euro environmental standards. The latest scheme involves providing subsidies to replace old trucks.

To what extent have these measures actually improved roadside air quality? Undoubtedly, things would be very much worse if the government had not implemented the measures. Yet, the air pollution is still extremely high on a daily basis. That is the rub; not nearly enough has been done. So, the argument that things would be worse but for the government’s measures is not sufficient. There is no justification for the dangerously high levels of roadside pollution in Hong Kong. Looking at the current conditions is really the only way to judge success or failure. In health terms, the conditions mean that, every day, many Hongkongers are exposed to unacceptable levels of air pollution when they are at the side of, or close to, busy roads. A comprehensive cleanup is needed. This requires active planning and collaboration between the bureaus and departments responsible for planning, the environment and transport.

Each minister and deputy secretary should be made to read the roadside air-pollution data on a daily basis, alongside the WHO air-quality standards, so they can personally comprehend how bad things are and use that to measure whether they are doing enough. The chief executive and the chief secretary ought to do the same. Unless they show leadership and demand tough action, tackling roadside air pollution will prove too difficult. This is why we have not seen significant improvements to date.

As for regional air pollution, Hong Kong and Guangdong are not going to meet their agreed improvement targets by 2010. It was always going to be a tough challenge, because with the level of pollution being generated, small fixes would never be enough; the region needs a directional change. Hong Kong must work closely with Shenzhen to improve emissions related to power generation, and clean up manufacturing, logistics, shipping and port-operation activities, for starters. Moreover, the government can use the Guangzhou Asian Games in 2010 to push regional collaboration. And, please, stop blaming the wind for our bad air.

Christine Loh Kung-wai is chief executive of the think-tank Civic Exchange. cloh@civic-exchange.org

Hong Kong Pollution Ownership

One thing is clear: It’s time to take ownership

In this article – the final in a four-part series on Hong Kong’s air pollution – Douglas Woodring, Associate for Civic Exchange offers solutions for ways in which Hong Kong manufacturers can help clear the air. “P2E2” is one effective program that gives guarantees to banks who can then lend to Hong Kong-based “Environmental Service Companies” (EESCOs) in order to supply environmental technology and services to factories in Guangdong. “The beauty of this program is that the factory pays nothing,” Woodring writes.

Imported Air – We Own Much of the Problem

In last month’s article, we learned that the poor fuel mix in Guangdong is a major contributor to our air problems. We now focus on the users of that fuel – the factories, which for better or worse, are largely owned by Hong Kong companies. So far, however, we have seen that these factories are not owning up to the extensive problems they are creating for us, as we end up importing the impacts of their poorly managed production processes.

Sources of air pollution in Guangdong include inefficient coal-fired power plants lacking effective emissions controls, growing vehicle fleets, heavy industry and the manufacturing sector. Many believe the view is wrong that Hong Kong can do nothing about our air imports, and to date, our side has failed to effectively tackle emission reduction on the part of Hong Kong-owned manufacturers.

In 2003, “manufacturing” accounted for 45 per cent of all public power consumption in Guangdong. Due to the shortfall in supply and transmission problems with Guangdong’s power grid, almost all of the factories in Guangdong developed alternate power sources which tend to be run on coal or poor quality fuel. In some cases, it is cheaper to run generators full time, rather than using the public grid at all, but in others, it is simply a necessity, which could change if and when the supply of power from the grid is greater than the increasing demand. One alarming fact is that the manufacturing sector’s consumption of coal was two thirds that of the power sector’s, increasing at a rate of 20 per cent from 2000 to 2004. Considering coal’s use for public electricity, as well as its direct use of coal, the manufacturing sector is responsible for 75 per cent of all coal used in Guangdong – most of which is not “clean” coal.

Similarly, manufacturing uses 90 per cent as much diesel in its generators as is used by the transportation sector – much of it with high sulphur content coming from smaller, unregulated refiners. To put this danger into perspective, California has just done a study that shows that 70 per cent of all health problems relating to air pollution come from diesel fuel (though remember that California does not have the wide use of coal that China has). These results should be a wake-up call to all of us in Hong Kong, where over 60 per cent of our locally created vehicle emissions come from our extensive diesel fleet.

The Clean Air Map is still Uncharted

The problem of addressing manufacturing air pollution in Guangdong is a difficult one. Things should improve somewhat by 2008 when the power grid increases overall supply (unless expansion of the manufacturing base outstrips this new supply, which has been the case in the past). Sources of cleaner fuel are generally not available, in part due to national fuel pricing controls and some sectors (textiles, paper, food and nonmetal mineral products) have shown a marked increase in direct coal use to augment the use of grid power. Despite the hope of cleaner fuels and increased public electricity supply, the near term prospects are not bright for the following reasons:

  • Coal will remain the major source of power generation and a major industrial fuel in Guangdong;
  • Those sub-sectors relying on coal or heavy fuel oil are likely to continue to self-generate because it is cheaper;
  • Constraints in the public power supply are not just in generation, but in transmission line capacity;
  • To initiate a large clean-up, higher quality fuels must be readily available, which is unlikely until price controls are eased;
  • Higher energy prices provide an incentive for manufacturers to switch to cheaper, dirtier fuels;
  • There is little hope that voluntary measures will result in worthwhile improvements. Stringent environmental mandates must be enforced on manufacturing;
  • Slow improvements in manufacturing emissions now will be compounded with an exponentially expanding Guangdong motor vehicle fleet.

Is there Blue Sky on the Horizon?

We know how to reduce pollutant emissions from within Hong Kong, but the fact that we have not done more to clean up our own act is a failure of political will to face up to the higher costs of implementing fundamental changes. Unfortunately, we have not come even so far as to seriously evaluate what the options are for making a major dent in our pollution imports. Guangdong’s rapidly increasing motor transport sector is likely to prove the most challenging to deal with in environmental terms, but at this point, manufacturing is the most important contributor to our air shed, and these issues can, and should be, quickly addressed through both cleaner fuel use and energy efficiency programs.

Normally, the most cost-effective first step in reducing air pollution is to upgrade the fuel being used, either by fuel switching (e.g., from solid to liquid, or liquid to gas) or when staying within a certain type of fuel to move toward ones with lower sulphur, and less of other contaminants. Due to limited options for fuel suppliers and their ability to locally source fuel of higher quality, energy efficiency in combustion and end-use seems to be the next best option. Better process design also has the advantage of potentially being a net cost-saver to the manufacturer through lower energy bills. The Hong Kong Government should look for ways to encourage such moves, for example, through investment assistance for energy efficient equipment, and codes of practice on the part of Hong Kong-owned and managed manufacturing plants.

An excellent program, recently launched with the help of the Asian Development Bank and the IFC is called “P2E2” (Pollution Prevention and Energy Efficiency), and is based on a five-year-old cooperative framework agreement between the US Environmental Protection Agency and the State Environmental Protection Administration of the PRC. This program gives guarantees to local banks, who can then lend (on very favourable terms) to Hong Kong based “Environmental Service Companies” (EESCOs) in order to supply environmental technology and services (from any country) to factories across the border. The beauty of this program is that the factory pays nothing. Yes, nothing. The EESCO is paid back based on the cost savings that are generated from a five-year service contract with the factory, and verified by an approved third party firm. Future service contracts can then be renewed, as improved technologies for further savings and pollution reductions are introduced. EESCOs can also gain the benefit of pollution credits that they have generated from such contracts, which can then be sellable in the growing market of pollution emission credit trading. This is arguably one of the most innovative market incentive mechanisms anywhere in the world today, and Hong Kong companies have an enormous opportunity to take advantage of this, both to help China’s growing pollution problems, as well as to be a leader in any of the developing Asian countries.

In order to combat our dire air quality situation, the Hong Kong Government should be explicit in stating that we have a direct interest in Guangdong’s energy use. The Government should be working with Guangdong in areas which aim to:

  • End price controls on petroleum products through the implementation of a market based pricing system;
  • Discouraging (and if possible, ban) the use of high sulphur fuel, with moves to facilitate the comprehensive use of low sulphur content fuels;
  • Ban the use of coal with sulphur content above 1.5 per cent, and as feasible, require the use of fuel gas desulphurisation controls;

We should then work with Hong Kong’s owned manufacturers to invest in energy efficient equipment and processes (with the help of programs like P2E2). At the same time, Hong Kong’s business associations should work with its members to raise the awareness about their responsibility toward reducing the Territory’s “imports” of air pollution from across the border. Energy audits should be highly encouraged, with Hong Kong companies hopefully taking the lead in energy conservation across the border, as well as demanding the use of clean fuels.

Hong Kong faces a unique problem due to the jurisdiction issues across the border. It is time, however, that our own factories face up to the enormous burden they are putting on our territory, at the expense of all of us. Effectively, we are subsidising these factories for their low cost production, and the economics of this action cannot continue unabated. If so, we will continue to pay the price in terms of high health costs, premature deaths and lost competitiveness due to declining living standards. Solutions are possible, but we must act on them now with, both locally, and with the powers that be across the border.

Losing Sight of Hong Kong’s Harbour

Losing Sight of Hong Kong’s Harbour

Douglas Woodring, Associate, Civic Exchange pens his second article for Britain in Hong Kong on the burning issue of Hong Kong’s worsening air pollution. He brings our attention, this time, to local marine emissions and the negative impacts they are having on our air quality.

Impact of Marine Emissions

Hong Kong’s greatest asset is its harbour, yet as we all know, this has become harder and harder to appreciate with clarity as air pollution appears to be steadily on the increase. We often focus on vehicle, power plant and industrial emissions as the culprits, but what about marine emissions? What impact does living next to two of the world’s top four busiest ports have on our air quality, and what is being done about it?

Unfortunately, the answer is that port traffic is a significant contributor to the deterioration of our air quality, and that a lot more can be done to make improvements. Based on transportation figures, in 2004, more than 225,000 vessels arrived in Hong Kong. Of them, 16% (36,000) were ocean going vessels and 84% (190,000) were river vessels (38% ferries and 62% cargo vessels). As it stands today, marine air pollution is not regulated within the Air Pollution Control Ordinance which is the main regulatory control mechanism for emissions within Hong Kong.

Marine emissions in Hong Kong are important for two reasons. Firstly, they are one of the only emission sources whose emissions continue to increase year on year, and secondly, although the absolute amount of marine emissions are less than motor vehicles, are emitted in the heart of Victoria Harbour and are released close to the ground level and within a few kilometers of the densely populated Kowloon peninsula. They pose as serious health risk. In fact, Nitrogen Oxides (NOx) and Sulphur Dioxides (SO2) have both been on the constant increase in Hong Kong since 1990, with both almost doubling in the past 10 years. Each of these pollutants are contributors to the haze and grey skies that are seen in our city, with NOx being a source of ozone creation which is widely considered to be dangerous in terms of health and environmental impacts. A recent study by CLSA and Civic Exchange has shown that Hong Kong’s hazy days have increased from less than 10 per month in 1990, to over 25 per month in 2004.

Sulphur Oxides

While the extent of the influence of PRD regional based pollution has been long known, the influence of local marine sources on local SO2 levels is relatively new information which contributes to the mounting concerns over marine emissions. Ocean going cargo vessels are legally able to use high sulphur fuels with sulphur content up to 4.5%, which contrasts with current requirements and availability of road vehicle fuel in Hong Kong which is 0.005% for motor diesel and petrol/gasoline. Marine fuels are often called Heavy Oil or Bunker Fuel, and these contain high amounts of sulphur which forms SO2 upon combustion, along with substantial amounts of elemental-carbon, nickel and vanadium, all which have significant health implications for affected populations. To put this all into perspective, recent studies show that marine vessels around Kwai Chung are responsible for 36% of total SO2 concentrations measured at the Hong Kong Environmental Protection Department’s air quality measuring stations. Surprisingly, local power plants were only responsible for 7% of total SO2 concentrations at the same stations. Furthermore, marine vessels burning high sulphur fuel appear to be the major source of SO2 in specific locations within the heart of the urban area. To further show the severity of marine vessels’ contribution to sulphur oxides (SOx), ships anchoring at Tokyo’s port emit eight times more SOx per year than the total amount emitted by autos in six Tokyo Wards along the bay.

An Overlooked Problem?

In some aspects, marine pollution has been overlooked as a problem source, partly because marine vessels do not operate on land where the human population moves about each day. Similarly, there are various local and international bodies that govern marine transport, and because ocean going vessels move from port to port, a higher level of international cooperation and understanding of these problems is necessary in order to effectuate a policy on emissions which can be widely accepted, adopted and monitored.

Currently, most of the shipping industry (for ocean going vessels) feels that shipping regulation should be undertaken and enforced uniformly on an international basis through the United Nation’s International Maritime Organisation (IMO). Regulatory issues in the PRD then involve consideration of three different jurisdictions: (i) Hong Kong’s, (ii) Mainland China’s, and (iii) the international jurisdiction of the IMO. International pollution controls are primarily implemented through the MARPOL Convention, of which Annex VI “Prevention of air pollution from ships” came into force in May 2005. This sets limits on SO2 and NOx emissions, and prohibits deliberate emissions of ozone depleting substances. Currently 27 countries have ratified Annex VI, representing 64% of the world’s tonnage in ships. Hong Kong and China have yet to ratify Annex VI, with only Japan and Singapore complying with this annex within Asia. Hong Kong authorities have stated that they expect to ratify Annex VI within 2006 and in any event their current regulations are largely compliant with its requirements.

The IMO also enables regions to be declared Sulphur Emission Control Areas (SECA). To date there are two SECAs in the world which require ships to reduce SOx emissions within their boundaries through using cleaner fuels within those zones. Other emission reductions are also being achieved, largely in the US and European Union, through the reduction of vessel speeds within harbours, changing to cleaner fuels while operating auxiliary engines when approaching harbour, retrofitting ships with emission reduction equipment and the use of shore-side power while docked at port. It is unlikely that Hong Kong will be able to establish a SECA under the IMO regulations. This is largely because in order to achieve SECA status, Hong Kong and Mainland China, being two adjoining countries, must jointly apply and each must have already ratified Annex VI. Moreover, each must have individually taken strong measures nationally to reduce marine emissions before SECA status is granted. Neither Hong Kong or the Mainland appears to have made any effort thus far to reduce marine emissions at its increasingly busy ports, with one commentator saying that “the [Chinese] government has made great efforts to reduce emissions from stationary sources and vehicle exhaust; however, emissions from ships are usually neglected.”

What Can We Do?

What then, can Hong Kong do to improve this situation within our jurisdiction and the PRD? Examples from the U.S. and Europe have shown that two different approaches are being explored and implemented: (i) the use of incentives for complying vessels in the form of reduced fees, shorter waiting time for dock space, and reduced inspection times, and (ii) taxation, differentiated dues and other penalties for failing to comply. In some cases, incentives given by individual ports have shown to be just as effective in cleaning up emissions as regulations handed down from national or supra-national bodies. Use of clean vehicles and equipment at the port itself must also be a coherent part of emission reduction policy.

Hong Kong’s high level of river traffic should also be a main focal point for making improvements, as this accounts for 84% of our marine traffic. In this case, close coordination and cooperation from the PRD will need to be put into place. Cleaner fuels and shore-based power are two of the most likely options for progress, but this then runs into issues relating to fuel policy and availability in the PRD which will be covered in the next article in this series.

In summary, marine pollution is an increasingly worrying contributor to our local air quality problems, and one which is having a clear health impact on the entire population of Kowloon. International protection through the designation of a SECA will be difficult without the support of many countries/ports in the region, and Asia is lagging behind other regions in respect to this type of coordinated response to marine emissions. Hong Kong’s main target for improvement should therefore be aimed at local port policies (Hong Kong and Shenzhen), and programmes to address the use of fuel and/or emission standards on the vessels that constitute the high volume of river traffic within the PRD. Lack of action in the marine industry will contradict any improvements that may be made in land-based emission improvements.

This is the second article in a four-part series on Hong Kong’s air pollution. The next piece will focus on fuel options in the Pearl River Delta, and how that can impact our situation in Hong Kong.

Further information on shipping emission reduction options is available in Civic Exchange’s recently released report “Marine Emission Reduction Options for Hong Kong and the Pearl River Delta”, March 2006, available at www.civic-exchange.org

Local Perspective on Hong Kong Air

Local Perspective on Hong Kong’s Air

We all know that our air is polluted, but are we getting the full information of its severity? Are we greatly underestimating the scale of our problem? Douglas Woodring, a concerned resident of Hong Kong and local think-tank, Civic Exchange have come together to answer these questions for Britain in Hong Kong.

UNFORTUNATELY, it took Hong Kong’s largest sporting event, the recent marathon, and one of our all too common “bad air” days, to really get people to understand that we are truly under threat from our air quality. Without the knowledge on where we truly stand, however, the calls to action from the community, and the incentive to make necessary improvements, have yet to occur in a way that would be expected in Asia’s world city.

Who is to blame?

Sadly, the main blame for our air quality is the industrial growth on the other side of the boundary, which we cannot easily rectify, although 70,000 factories in the Pearl River Delta are under Hong Kong ownership and should be held more accountable. This is true, but we also need to be able to demonstrate that we have done everything we can in Hong Kong to tackle our own local air pollution before we can fairly criticise emissions north of the boundary.

With little manufacturing remaining in Hong Kong, the numbers are clear. There are two main components of our local emissions: the excessively high dependence on poor quality diesel vehicles, and air pollution from power generation, particularly from coalfired plants, as natural gas and nuclear generation alternatives are significantly cleaner local fuel sources. It is good news, in that the targets are easy to define, but it is unfortunate for all of us that not enough has been done to make the real changes that are needed. Instead, we are all paying the price of a slow pace of change with our and our families’ health and quality of life.

API Index: HK vs. EU

The first issue to understand is the true level of pollutants in our air. Unfortunately, we are still being given Air Pollution Index (API) readings that are skewed by taking an average reading of various pollutants from the previous 24 hours. Moreover, the Air Quality Objectives that have been introduced for Hong Kong in 1987 are only objectives, but not actual standards. No one is accountable if they are not achieved. If you look at the API index based on European Union standards (http://www.cleartheair.org.hk) you will find an enormous difference in readings.

The EU claims that it is “very unhealthy” when there are 50 micrograms of pollutants per cubic metre of air, where Hong Kong’s “very unhealthy” level is only reached at 180 micrograms. The day before the Hong Kong marathon, the levels in Central reached almost 300 (based on the EU index). Based on the EU index, the readings are above 200 in Central more often than not, yet our local API index reports the same days as just under 80. With nearly 20-year-old Air Quality Objectives in place, Asia’s world city is out of step with standards set in other parts of the world, and until our API index readings and interpretations of their content are inline with those of the developed world, our decision makers will continue to underplay the urgent need for change.

Road blocks

Hong Kong has the highest percentage of “diesel” road miles driven per capita out of any major developed city in the world. This is a major challenge for Asia’s world city. Tokyo recently embarked on a stringent campaign to limit diesel vehicle use in the city during the day time, while California has declared diesel a carcinogen. The European Commission is also preparing to introduce more stringent limits on diesel particulate emissions, reducing it to a level five times lower than the current Euro 4 standard, as the soot produced primarily by diesel cars has been blamed for a variety of respiratory problems. Daimler Chrysler has recently said that it will equip all of its diesel models with particulate filters starting this year in the Netherlands, Switzerland, Germany and Austria. This is because the community there demands it. Why can’t these filters be used here in Hong Kong?

In contrast, one of Hong Kong’s bus operators is applying for a new 10-year licence, yet the government has yet to set new minimum standards in its type of engines or pollution control equipment, and only 10 out of 752 buses in operation are of Euro III standards. In fact, out of Hong Kong’s licenced bus fleet, 83 per cent out of 4,025 buses are below Euro III standards. One recent response from a government official to the expedition of the replacement of buses to Euro III standards was “that there is a need to adopt a gradual and cautious approach in considering bus replacement.”

Hazardous to health

Locally, Nitrogen oxides (NOx) are primarily produced from power generation and transportation. They affect living materials, building materials and contribute to acid rain. NOx are also a key ingredient of ground-level Ozone, of which diesel fuels are a significant contributor. A 2005 study commissioned by CLSA and prepared by Civic Exchange shows that Ozone concentrations are rising rapidly in Hong Kong, the results of which can be eye and lung irritation, with long-term recurring exposure potentially
causing chronic health problems.

Dialogue has started to introduce Euro V fuels, where the Sulphur content is five times lower than that of current diesel. This will have very little impact, however, if the quality of the majority of Hong Kong’s diesel engines used is not brought up to date. Serious efforts should be made to phase out older diesel vehicles of all types, retrofit others with the most sophisticated particulate traps, and make sure that the fuel used is of the highest quality. This also means making sure that fuels from across the border, where sulphur content is from 50 to 500 times that of Hong Kong, do not make their way onto our roads.

Polluter pays

In terms of energy production in Hong Kong, with the Scheme of Control under review, it would be timely for the introduction of coal-fired emission control equipment to be introduced under a new regulatory regime, which includes environmental performance targets. Hong Kong needs to embrace the “polluter pays principle”. In this regard, a combination of ‘carrot and stick’ comprising bold leadership, world standards, meaningful penalties, attractive incentives and civic education all need to be utilised to deliver necessary improvements.

One solution recommended by economist Philip Bowring’s recent South China Morning Post article suggested an ‘energy tax’, which would simply mean that those who use the most of our resources pay accordingly. Since there is no longer a significant industrial base in this city, this option appears to have merit, also prompting conservation and energy efficiency along the way, which few seem to have the true incentive to pursue today. Until older polluting vehicles are phased out, part of the proceeds from such an ‘energy tax’ could be used to help convert, modify and greatly improve the tens of thousands of outdated diesel vehicles that travel (and idle) on our roads every hour by retrofitting state of-the-art pollution traps and filters.

The options for improvement, that we have in Hong Kong can control, are fairly straightforward, but we all have to want improvement. Unfortunately, not all of us ask for it with such urgency because we are not aware of what is really happening when we are given air pollution readings, which are out of step with international standards. The choice is ours, but we need to put the goal posts in the right places so that we can judge the results and bring accountability to the system.