Energy was an issue of significant global concern in 2005 in light of climate change fears and the high cost of oil. Hong Kong imports all its fuel. The Government recognises we must endeavour to reduce our consumption of non-renewable energy if we are to achieve greater sustainability. That means consuming less energy and identifying alternative sources.

In "A First Sustainable Development Strategy for Hong Kong" published in May 2005, the Government set out a strategy on the development of renewable energy. One of the key targets is to generate one to two per cent of Hong Kong's total electricity needs from renewable sources by 2012, subject to regular review to take account of technological advances and emerging sustainability considerations.

A wind turbine on Lamma Island

Achieving this target will require the co-operation of the two power companies. Both CLP Power Hong Kong Ltd (CLP) and The Hong Kong Electric Company Ltd (HEC) have taken a positive first step in this direction, agreeing to set up production-scale wind turbines. HEC has erected a wind turbine on Lamma Island that will start operating in 2006. CLP is exploring two sites for the construction of their wind turbine project, which is expected to be up and running in about 2007-08. Renewable energy is also being discussed in negotiations between the Government and the power companies over the post-2008 regulatory regime for Hong Kong's electricity market.

Consumers will also play an important role in helping Hong Kong to achieve energy savings. Since 1995, the Government has been operating a voluntary energy efficiency-labelling scheme for 17 types of household and office appliances and vehicles, so consumers can take energy performance into consideration when making purchases. The EPD now proposes to impose a mandatory labelling requirement for some products, to promote greater efficient use and conservation of energy. A scheme was proposed in 2005 that would require local manufacturers and importers to display energy efficiency labels on all air-conditioners, refrigerators and compact fluorescent lamps at point of purchase. A consultation document on the mandatory scheme received generally positive feedback from the trade, the public and the Advisory Council on the Environment. The EPD will next prepare a legislative proposal on the scheme, taking into account the views received.

One of the biggest consumers of electricity in Hong Kong is the Government and we are mindful of our responsibilities to conserve energy. The Government has established guidelines and procedures on the adoption of energy efficient features and renewable energy technologies in government projects. We now require government departments to adjust air-conditioners so that indoor temperature will be maintained at 25.5 degrees Celsius during summer months and we have urged the business community and the general public to adopt the same practice (see box).

The other new area under EPD's remit is nature conservation. We are building on the foundations laid by the Environment, Transport and Works Bureau, which unveiled the New Nature Conservation Policy in November 2004. This policy seeks to prioritise and enhance the protection of important ecological sites, particularly those on private land. It also seeks to encourage green groups, landowners and developers to work together to manage sensitive areas.

About 40 per cent of Hong Kong's land is designated as country parks and special areas, but a number of valuable ecological sites are located outside that area, on private land. This has led to tensions between landholders' desire to develop their land and the need to protect these sites. The new policy proposes two pilot schemes that aim to create a win-win situation for both the landowner and the environment. Under the Pilot Scheme for Management Agreements (MA), non-governmental organisations can apply for government funding to provide landowners with financial incentives to co-operate in conserving sensitive sites. Under the Pilot Scheme for Public-Private Partnership (PPP), development will be allowed on a less ecologically-sensitive area of a site, but the applicant must commit to long-term conservation and management of the rest of that site. 12 priority sites for enhanced conservation have been identified, using a scientific scoring system agreed to by a respected group of experts.

Three MA projects were approved in 2005 and will receive a total $4.6 million in funding from the Environment and Conservation Fund. Two of these projects are in Long Valley. The Hong Kong Bird Watching Society will work with farmers to increase biodiversity in bird habitats there, while the Conservancy Association will work with farmers to enhance diversity on abandoned agricultural lands. The third project is in Fung Yuen where the Tai Po Environmental Association will work with landowners and operators to observe good practices for butterfly conservation. It is hoped these partnerships will demonstrate the viability of sharing responsibility for protecting the environment and help reduce the tension between conservation and development. The Government has also received six applications for the PPP Pilot Scheme that are currently under consideration.

Given Hong Kong's limited space, it is essential that green groups, landowners and developers work together with the Government to identify innovative solutions for protecting sensitive environments. The same may be said of energy conservation. Power companies and the public need to accept their role in promoting renewable energy and reducing wasteful consumption. The EPD will carry the Government's conservation policies forward with a message that is common to its other policy areas, that protecting the environment is a collective responsibility.