Low Carbon Economy
62. The Government attaches much importance to the issue of climate change. We commissioned a consultancy study last year to develop comprehensive strategies and measures to cope with climate change. The consultancy study is expected to be completed early next year. The Government is committed to reducing the energy intensity of Hong Kong by at least 25% by 2030, compared with 2005 levels. Though our economic growth is driven mainly by service industries which are not energy intensive, Hong Kong may reduce carbon emissions even further through the use of clean fuel and improved energy efficiency.
63. The Government concluded a Memorandum of Understanding (MoU) on energy co-operation with the National Energy Administration last year. Since then, substantial progress has been made. Construction work for the eastern section of the Second West-East Natural Gas Pipeline commenced in February this year. Energy enterprises of the two sides are planning to jointly construct a liquefied natural gas terminal in Shenzhen. Completion of both projects is expected in 2013. Also, energy enterprises of the two sides have recently renewed the agreement on the supply of nuclear electricity for a further term of 20 years. The implementation of the MoU on energy co-operation ensures the provision of more clean energy for Hong Kong, which will contribute significantly to the improvement of air quality and the reduction of carbon dioxide emissions. Furthermore, the Environment Bureau (ENB) has started to explore with the two local power companies ways to raise the proportion of using natural gas for local electricity generation from the current 28% to 50%.