US-AEP
ASSESSMENT:
Hong Kong
ACRONYMS
1. EIA: Environmental
impact assessment
2. EPD: Environmental Protection Department
3. ISO: International Organization for Standardization
4. NGO: Nongovernmental organization
5. PRC: People�s Republic of China
6. SPEL: Secretary of Planning, Environment, and Lands
1. ECONOMIC
PROFILE
Demographic
Conditions and Trends
As a "nation city," it is not
surprising that 95 percent of Hong Kong�s population is considered urban.
The territory�s average annual rate of population growth has dropped
dramatically from 1.2 percent to 0.6 percent. The infant mortality rate is
among the lowest in Asia. With annual per capita income among the highest in
the region, Hong Kong prides itself on its education system, which has
resulted in a literacy rate that is among the highest in the region, on a
par with Japan. Average life expectancy, at 78 years, is also among the
highest in Asia.
Economic
Conditions and Trends
The gross domestic product of
Hong Kong has been growing at an annual rate of 5.5 percent. In the last ten
years, much of the traditional manufacturing that occurred in Hong Kong
moved to South China to take advantage of cheaper land and labor. Recently,
unemployment in Hong Kong has risen to more than 3 percent, raising concerns
within industry and government about Hong Kong�s ability to create a
sufficient number of jobs for its population.
The economy of Hong Kong is
largely trade based. It has imports of $193.2 billion (134 percent of gross
domestic product) and exports of $174.1 billion (including more than 70
percent re-exports or 121 percent of gross domestic product). The economy
consists of "services," which make up 80�90 percent of gross domestic
product, and manufacturing, which makes up the remaining 10�20 percent.
Services include financial products and investment banking, real estate and
construction project financing, and trade finance and services (including
"value-added" sourcing, packaging, marketing, and shipping and
distribution).
Hong Kong is a major Asian
economic center that is home to many regional headquarters of multinational
corporations. Entrepreneurs and financiers residing in Hong Kong manage
capital investment, manufacturing, and trade in Hong Kong and the region.
Much of the manufacturing and trade that occurs in the Guangdong Province of
the People�s Republic of China (PRC), the fastest growing region in the
world, is controlled by industrialists based in Hong Kong.
The foreign capital
investment in the PRC that flows through Hong Kong currently includes
investment from Taiwan. Recent legislative proposals in Taiwan, if passed,
may allow direct investment between Taiwan and the PRC in the near future.
This would reduce some of Hong Kong�s related activity and may even result
in Taiwan competing with Hong Kong as a "gateway" to investment in the PRC.
The single most important
event in the history of Hong Kong is the pending transfer of Hong Kong back
to the PRC in July 1997. The event raises great uncertainty about whether
Hong Kong will continue as the premier regional center of capitalism or
whether the PRC will intervene and begin to disrupt the unfettered business
environment that Hong Kong provides. The government of the PRC has agreed to
a fifty-year period during which Hong Kong will be allowed to operate under
a "one country/two systems" rule, but concerns continue to exist about such
things as the future freedom of the media, use and continuing surplus of
reserves in the Hong Kong government�s treasury (more than $55 billion), and
freedom for businesspeople to choose any area of trade and manufacturing.
2.
ENVIRONMENTAL PROFILE
Industrial
and Environmental Development Background
Manufacturing in Hong Kong
consists largely of textile and garment production (including bleaching and
dyeing), electroplating, printing, and consumer electronics (including
printed circuit board assembly). The vast majority of Hong Kong�s industrial
base consists of small- and medium-sized facilities. Industrial development
in Hong Kong has been subject to little or no regulation. The lack of zoning
laws and the shortage of land has resulted in establishment of vertically
integrated "flatted factories" (small companies doing mixed types of
manufacturing on individual floors of multistory buildings) in mixed-use
commercial and residential areas. The limited space and small size of most
of Hong Kong�s manufacturing facilities present a serious obstacle to
adoption of appropriate pollution control technology.
Environmental
Conditions
Air pollution is the most
obvious environmental problem facing Hong Kong citizens. Vehicle emissions
are the greatest contributor to air pollution, particularly due to the large
number of diesel engine vehicles (taxis, buses, and trucks). The Government
of Hong Kong has introduced fuel efficiency standards, required petrol
stations to provide lead-free petrol, and experimented with subsidized
pricing to promote the use of lead-free petrol and the shift from diesel to
petrol. With low income taxes and import duties, fiscal incentives to
promote a shift to unleaded petrol are weak.
The government has also
promoted the use of low-sulfur fuel oils, improved pollution control at
power plants, closed several waste incinerators, and prohibited open burning
of wastes.
A recent study of toxic air
pollutants completed by the Hong Kong Environmental Protection Department (EPD)
concluded that benzene, 1,3 butadiene, diesel particulates, hexavalent
chromium, and perchloroethylene are the toxic pollutants of most concern.
Pollution of Victoria Harbour
is a serious problem, largely attributed to the more than 2.2 million cubic
meters of raw wastewater that flows from sewers and storm water drains into
the harbor and surrounding waters. This problem will be greatly ameliorated
with completion of Hong Kong�s Strategic Sewage Disposal System (see section
5), which when fully operational will intercept and treat most of the
pollution that is now discharged into the harbor.
To address its growing solid
waste problem, Hong Kong has closed old landfills and now has three
state-of-the-art landfills servicing the entire populace. Construction waste
is the largest component of the solid waste generated in Hong Kong. A
construction waste reception facility opened in 1995. The facility will
recover and divert reusable inert material from disposal. Noise and dust
pollution, largely due to construction, are also major public concerns.
Environmental
Trends and Issues
Hong Kong largely has the
capacity to analyze and track short- and long-term air and water quality
trends. EPD maintains a network of fixed-site air quality monitors on Hong
Kong Island and the New Territories. Data from the network, combined with
implementation of an air quality model currently under development, should
give the department a sound basis for evaluating and upgrading its air
quality management plan. EPD and its predecessor agency have monitored water
quality in Victoria Harbour for the past fifteen years, and, in
collaboration with researchers in the PRC, EPD has developed a system of
water quality and hydraulic models to observe and predict changes in sea
water quality in an area three times the size of Hong Kong�s territorial
waters.
EPD reported in 1993 that
ambient concentrations of total suspended particulates exceeded Hong Kong�s
Air Quality Objectives in areas of heavy motor vehicle traffic by 30�40
percent and nitrogen oxides by 15�20 percent. Sulphur dioxide standards were
generally met in all but a few locations near industrial facilities.
EPD also reported in 1993
that a modest but steady improvement had occurred in river and stream
quality since 1989, resulting from implementation of effluent standards,
livestock waste control, and new sewerage systems in the New Towns; however,
Victoria Harbour would not meet Water Quality Objectives until the Strategic
Sewage Disposal System (see section 5) became operational. The first phase
of the system, scheduled for completion in 1997, will intercept and treat 70
percent of the pollutants now discharged to the harbor.
A waste reduction study
commissioned by EPD projected that Hong Kong will experience an increase in
municipal solid waste from 7,900 tons per day to 12,300 tons per day in
2006. Unless this trend is reversed by implementing a set of policies to
reduce waste generation and improve the current practices for disposal of
construction waste, the three strategic landfills will be filled in only
seventeen years and the urban landfill in thirteen years.
3. GOVERNMENT
Hong Kong�s current
governmental structure provides for distinct and autonomous roles for
departments responsible for support to industry (primarily the Industry
Department) and for environmental regulatory matters (EPD). The Legislative
Council plays a larger role in the administrative affairs of executive
departments than is the case for most of the other countries in the Asian
region.
Key
Ministries for Industrial and Environmental Matters
The Secretary of Planning,
Environment, and Lands (SPEL), Environment Division of the
Planning, Environment, and Lands Branch, has overall responsibility for
policy matters related to environmental protection. SPEL reports directly to
the executive and legislative councils for approval regarding major policy
objectives and new legislation.
The Environmental
Protection Department is the main environmental standard-setting and
compliance organ in Hong Kong. EPD is responsible for setting and enforcing
pollution control standards, monitoring environmental quality, planning
treatment and disposal for all types of wastes, and conducting environmental
impact assessments (EIAs) for town plans, large industrial plants, and any
other developments that might have significant environmental impact. EPD
provides SPEL with help in formulating new policies and programs. The
department is also the central environmental complaint and inquiry service.
EPD conducts enforcement through local control offices.
The Industry Department
provides support to Hong Kong�s industries by commissioning studies,
providing information services, and administering industrial support funds.
To assist industry, the Industry Department engages consultants and
quasi-public organizations, such as the Hong Kong Productivity Council, to
provide research and development and other assistance. The Industry
Department administers the Industrial Support Fund, which is intended to
enhance the competitiveness of the local manufacturing industry.
The Hong Kong Productivity
Council, with government support and consultancy fees, conducts
technical research and development for Hong Kong industry. The Hong Kong
Productivity Council is currently conducting environmental programs such as
an ISO (International Organization for Standardization) 14000 Pilot Project,
clean technology research and development, and pollution control research
and development. Most of the activities are focused on providing assistance
to small- and medium-sized enterprises.
The Drainage Services
Department is responsible for planning and maintaining the large
sewerage disposal scheme and the storm water drainage system.
The Civil Engineering
Services Department is responsible for procuring and managing design and
construction services for public works, including the massive planned
additions to environmental infrastructure.
Other Key
Institutions for Industrial and Environmental Matters
The EPD Clean Technologies
Interest Group, an informal group of EPD professionals, publishes a
newsletter on opportunities to adopt cleaner technologies. The group is also
building a data base of sources of information about clean technologies.
The Environmental
Pollution Advisory Committee provides advice to SPEL on all
pollution-related matters. The committee�s membership, appointed by the
governor, is entirely made up of NGOs.
4. POLICIES
AND LAWS
Unlike many of its neighbors,
Hong Kong does not have a history of economic protectionism. The
government�s industrial policy is one of "minimum intervention/maximum
support" to Hong Kong�s industries. On the environmental policy side of the
equation, however, the government has dramatically strengthened its
environmental laws, regulations, and programs, particularly since the late
1980s. The environmental policy framework is based largely on a
command-and-control approach, although a limited but controversial charge
scheme for industrial effluents has recently been implemented.
Environmental
Policies and Laws
Regulatory framework.
The Government of Hong Kong manages environmental issues through various
ordinances focused on specific environmental media. Recently, ordinances
have been amended and stronger regulations have resulted in positive change.
Until the passage of the Water Pollution Control Ordinance in 1980,
enactment of Water Pollution Control Regulations in 1986, recent enactment
of the Sewerage Services Ordinance in 1994, and tougher sewerage regulations
in 1994 and 1996, most industries were allowed to discharge untreated
wastewater directly into marine and inland surface waters without penalties
or costs imposed.
Implementation of legislation
has been generally slow. For example, in 1989 SPEL proposed creating ten
water control zones under the Water Pollution Control Ordinance. The tenth
water control zone, Victoria Harbour, was only just declared and brought
under regulatory control in 1996. The Victoria Harbour water control zone
has by far the largest number of industrial facilities. The designation and
control of a water control zone does not necessarily translate into
environmental protection. With designation of the Victoria Harbour water
control zone, industries have been given eight months to apply for discharge
licenses; however, because only a few of the many industries and residents
in the zone are served by the existing sewer system, EPD will be lenient in
enforcing effluent standards violated by facilities.
The Government of Hong Kong
has implemented a strategic approach to implementing and monitoring its
environmental programs. It commissioned an environmental study in 1989 that
resulted in the landmark policy statement titled 1989 White Paper:
Pollution in Hong Kong, a Time to Act. The white paper assessed the
state of Hong Kong�s environment and recommended initiatives and targets for
the next ten years. Recommendations included development of a system for
collection, treatment, and disposal of sewage; development of facilities for
collection, treatment, and disposal of chemical and municipal wastes; and
creation of various government departments and councils responsible for
anticipating and mitigating the environmental impacts of future economic
development. Three subsequent reviews (1991, 1993, and 1996) have assessed
the progress of EPD in implementing the recommendations of the 1989 white
paper.
"Polluter pays" principle.
The government program to implement a "polluter pays" principle through user
fees has had mixed results. Currently, no user fees are levied on solid
waste collection and disposal (although EPD�s waste reduction study
commissioned by EPD does recommend them).
In 1995 user fees were
established for domestic and industrial sewerage services, including a trade
effluent surcharge imposed on more than thirty selected trades and industry
sectors in which effluent is of higher strength than domestic sewage;
however, the charges, if imposed at all, reflect only a portion of the
operating costs of sewerage services (the capital costs are funded under the
Capital Works Programme). Observers have questioned whether the charges are
sufficiently high to provide any kind of incentive for improved
environmental performance. Furthermore, industry polluters complain that the
charges are based on the average characteristics of effluent by industry
sector for geographic areas and are not based on the actual characteristics
of the effluent of a specific facility.
A chemical waste collection
system and treatment facility began operation in 1994. Initially, no user
fee was charged for submitting chemical wastes to the system. Recently, a
user fee representing 20 percent of variable costs was imposed, to be
increased at a future date up to 100 percent of variable operating costs.
Even at these marginal amounts, complaints about the charges were registered
by industry.
Environmental impact
assessments. In 1992 the Government of Hong Kong implemented the use of
EIAs for public policy proposals and public projects. This was an
administrative, discretionary initiative that was not required by law. In
January 1996 legislation was introduced in the Legislative Council to make
the EIA process mandatory and apply it to private developers of projects
greater than a certain size. Considerable public debate is taking place on
the size threshold for the EIA requirement. In addition, questions have been
raised by the environmental community about the extent of public
participation and review in the EIA process and public access to
information, including EIA statements.
Industrial
Policies and Laws
The industrial policy of the
Hong Kong Industry Department and the Government of Hong Kong at large is
described as "maximum support/minimum interference."
Maximum support. The
approach of the Government of Hong Kong has been to support industry through
departments and councils, such as the Industry Department and the Hong Kong
Productivity Council.
In terms of environmental
management, industry is provided maximum support through subsidized
environmental infrastructure. The Government of Hong Kong pays for the
capital costs of environmental infrastructure out of its treasury reserves.
If industries are charged a user fee for waste management, it is only a
portion of the variable costs associated with the collection, treatment, and
disposal of wastes. For example, the rates charged by the newly opened
Chemical Waste Treatment Center are about 20 percent of variable costs and
were established with plans to ramp up the rates at some future point in
time to reflect full variable costs.
The Industry Department
commissioned a study of Hong Kong industry in 1992 and recommended upgrading
the technological level of the four primary industries present in
Hong Kong, that is, textile/garment, printing, electroplating, and consumer
electronics. In response, the Industry Department created the Industrial
Support Fund to promote technological improvements and attract high-value
manufacturing to Hong Kong. In addition, the department commissioned
numerous studies, reports, and projects to provide manufacturers with
information and services.
Minimum intervention.
The laissez-faire approach permeates all government departments and is a
widely accepted approach to governing. Little or no central industrial
planning is undertaken. This approach defines the way that the government
assists Hong Kong industry. For example, Hong Kong has "observer status" at
the International Organization for Standardization; however, although the
Industry Department has funded the ISO 14000 Pilot Program of the Hong Kong
Productivity Council, no plans exist to create an "accreditation board" or
establish an accreditation/certification infrastructure. This level of
involvement is left to the private sector.
Except for the infrastructure
subsidies discussed above, the government is reluctant to use fiscal
incentives to effect behavioral change. No or low import and export tariffs
exist in Hong Kong. Income taxes are relatively low at 15 percent with no
fiscal income tax subsidies (e.g., accelerated depreciation or tax credits).
The government derives most of its revenue from the lease of land to
developers. Unfortunately, when environmental regulation may result in
significant impact on Hong Kong business, the approach has often been to
develop nonrestrictive guidelines, issue waivers, or ramp up regulation
slowly.
Intervention anomaly.
The ongoing shift of manufacturing to South China and the recent increase in
the level of unemployment (more than 3 percent) in Hong Kong have motivated
the government to seek to attract manufacturing back to Hong Kong. To do
this, the government plans to create industrial estates that are projected
to provide 15 percent of future manufacturing jobs in Hong Kong.
A current industrial estate
offers land leases at levels 20 percent of (80 percent below) the prevailing
market rates in Hong Kong. The industrial estates will seek tenants that
will bring high-value-added industries (e.g., Motorola has been negotiating
to build a semiconductor plant on one industrial estate). The industrial
estates will provide common effluent treatment facilities and other
environmental and traditional infrastructure.
Public
Information Policies and Laws
Although Hong Kong has an
"access to information" code, it is not comparable to a "Freedom of
Information Act" type of law, because it does not require government
agencies to respond to public requests for information; however, government
departments do provide a substantial degree of information access to the
public and provide channels for the public and NGOs to participate in policy
and regulatory decisions (e.g., procedures for public comment on proposed
rules, public hearings, and so forth). EPD has a number of programs directed
to providing community information and encouraging public participation in
its programs. These include publishing annual reports providing air and
water quality�monitoring results and operation of an environmental resource
center specifically intended to provide the public with environmental
information; plans exist to open additional centers throughout the
territory. SPEL has commissioned a study on life cycle analysis and product
ecolabeling that will include development of a framework for informing
consumers on the environmental merits of products.
NGOs have complained,
however, that specific information is difficult to locate and obtain beyond
that provided in documents prepared for the public, particularly regarding
individual industrial facilities. Public registers are even difficult to
locate and access. One example cited during the United States-Asia
Environmental Partnership (US-AEP) country visit was a situation in which an
NGO had to make more than seventy telephone calls to various branches of EPD
to locate and obtain a document on the public register.
Legal and
Policy Developments of Particular Relevance to Industrial and Urban
Environmental Management
The Government of Hong Kong
has a long history of nonintervention in its economy. Regulation has often
taken the form of voluntary guidelines and government assistance, rather
than command and control mandates. Recent legal and policy issues include
the statutory use of EIAs in large private development projects, level of
public review and access to information, and implementation of the "polluter
pays" principle.
Although the various
government departments and councils are moving forward to implement and
enforce current environmental ordinances and regulations and construct
planned environmental infrastructure, further environmental legal and policy
developments may be delayed until after the 1997 transition giving control
of Hong Kong to the PRC.
SPEL has recently announced
that it plans to launch a major study later in 1996 (subject to funding
approval from the Legislative Council) to build sustainability
considerations into the government�s strategic development planning and
enhance public awareness and education on environmental issues.
The EIA ordinance currently
pending before the Legislative Council includes a strong community
right-to-know mandate and will require project sponsors to make information
generated in EIAs available to the public.
5. URBAN ENVIRONMENT
AND INFRASTRUCTURE
A small percentage of
industry and residents currently have access to sewer systems; however, a
huge Strategic Sewerage Disposal Scheme, composed of sixteen geographic
sewerage master plans, was proposed in 1989; the first of its four stages is
due to be completed in 1997. Until the scheme is completed, government
enforcement of effluent standards will remain lenient. In fact, in most
cases, no sewers are currently available for connection and may not be
available for years. In such cases, the government may require companies to
install on-site pollution control equipment or may reduce or waive
compliance requirements. Many industries are temporarily allowed to
discharge into storm water drains.
Unlike other countries in the
region, groundwater contamination is not considered a serious public health
threat because Hong Kong does not rely on groundwater for its water supply.
Instead, the territory obtains 10�15 percent of its water from man-made
reservoirs and 85�95 percent via pipelines from rivers in China.
Every year, Hong Kong
generates more than 8,500 tons of municipal solid waste, more than 15,000
tons of construction waste, 110 tons of sewage sludge, about 100,000 tons of
chemical wastes, and more than 2 million cubic meters of liquid effluent.
Hong Kong is in the seventh
year of an ambitious ten-year plan set out in the 1989 white paper to
develop appropriate environmental infrastructure. Progress to date in
implementing environmental infrastructure projects includes the following:
Water Supply
The water supply needs of
Hong Kong are largely met. The cost of water is four times that reflected in
user fees, but no plans exist to change the fee structure.
Wastewater
The completion of the first
of four stages of the Strategic Sewerage Disposal Scheme, providing sewer
collection and treatment services to Hong Kong Island and Kowloon is
expected by 1997. The first stage will capture 70 percent of the effluent
currently discharged into Victoria Harbour. The second stage involves the
discharge to ocean outfall (Dangan Channel) of treated effluent. Stages
three and four include the collection of Hong Kong Island effluent for
treatment and long ocean outfall.
Solid Waste
Three new state-of-the-art
landfills in the Western New Territories, South East New Territories, and
North East New Territories started operations in 1993, 1994, and 1995
respectively. The new landfills include state-of-the-art liners and leachate
and methane collection and provide fifteen to twenty years of landfill
capacity. In conjunction with the landfills, three of nine planned refuse
transfer stations, Kowloon Bay, Island East, and Shatin, have started
operations in 1990, 1992, and 1994 respectively. Two of the remaining six
transfer stations will start operations in 1997, three transfer stations
will start operations in 1998, and one transfer station is scheduled to
begin operations in 2000.
Hazardous
Waste
A new Chemical Waste
Treatment Center capable of handling 100,000 tons of chemical waste started
operations in 1994. A government-mandated control system tracks the
transport of chemical waste from the source.
6. PRIVATE
SECTOR AND ACADEMIA
Industry
Hong Kong industry is driven
by profits. Environmental activities must satisfy business objectives. A
primary objective of Hong Kong industrialists is to maintain access to
international markets. Significant interest exists in private sector
initiatives, such as ISO 14000. More than 500 firms have gained ISO 9000
certification. The Hong Kong Productivity Council is conducting a pilot ISO
14000 program in which twelve companies will become certified as compliant
with ISO 14000 standards. The Hong Kong Productivity Council as well as
private consultants have conducted numerous workshops on ISO 14000.
Several industry associations
(e.g., textile/garment and electroplating) confirm that international
customers regularly conduct written and in-person environmental "due
diligence" (e.g., site investigations and reviews of laws, regulations, and
permits) of the supplier�s facilities. Most of Hong Kong�s
industrialists and manufacturers are suppliers to the international market.
The environment committee of
the American Chamber of Commerce in Hong Kong consists of environmental
technology companies, consultants, and environment officers of multinational
corporations with regional headquarters based in Hong Kong. The American
Chamber of Commerce has a well-attended informal ongoing workshop on "doing
business in China," in which companies share experiences, including
addressing environmental compliance issues in China.
Several Hong Kong companies
have formed the Private Sector Committee on the Environment to represent
industry in public debates on environmental policy and legislation in Hong
Kong. The committee also initiates projects, such as an environmental
efficiency rating program for buildings. The committee has funded
development of the Centre for Environmental Technology, including
construction of an exhibit hall, demonstration room, and office building
dedicated to promoting environmental technology in Hong Kong and the region.
Academic and
Research Institutions
All of the tertiary academic
institutions of Hong Kong provide courses, certificates, and degrees in
various environmental fields. For example, the Hong Kong University of
Science and Technology offers a bachelor�s degree in civil and structural
engineering with a focus on environmental engineering and a master of
science degree in environmental science and engineering. The university also
conducts research, such as air and noise pollution monitoring. The
University of Hong Kong and the City University of Hong Kong offer similar
diplomas.
In March 1996 the Faculty of
Law and the Centre of Urban Planning and Environmental Management of the
University of Hong Kong sponsored the "Asian Regional Workshop: Planning for
More Effective and Workable Environmental Law." In 1995 members of the
faculty and other interested parties formed the Hong Kong Environmental Law
Association. The members of the association track and comment on current
issues of law, such as the EIA Bill introduced in the Legislative Council in
January 1996.
Financial and
Insurance Institutions
Most major banks in the world
have offices in Hong Kong. Banking activity includes real estate finance,
regional trade finance, regional infrastructure finance, corporate finance,
and private banking. In Hong Kong, high land values result in levels of
collateral that significantly reduce bank risk in lending. Due to this and
because Hong Kong does not rely on groundwater as a source of water supply,
banks are not concerned about Hong Kong land that is contaminated with toxic
wastes or liability for any possible remediation costs.
For financial deals outside
of Hong Kong, particularly private investments in South China, some
environmental consultants report that international banks are increasingly
funding environmental "due diligence."
Union Bank is a founding
member and leader in the creation of the Private Sector Committee on the
Environment. The committee represents the private sector on environmental
matters (e.g., pending environmental legislation) and has initiated several
projects (e.g., disseminating environmental information, conducting training
courses, and promoting research). It has also bankrolled development of the
Centre for Environmental Technology (see above).
7.
ENVIRONMENTAL AWARENESS AND PUBLIC INVOLVEMENT
General
Public Awareness of Environmental Issues
Public concern about
environmental quality is much in evidence in Hong Kong. Every year the
territory under the auspices of the Governor�s Environmental Campaign
Committee celebrates World Environment Day and an Environmental Protection
Festival. On World Environment Day 1996, the Hong Kong Standard ran a
special feature devoted to environmental issues; however, although public
awareness is strong, it is not clear how deeply environmental concerns are
rooted. During the US-AEP country visit, a number of persons interviewed
expressed the opinion that with the July 1997 transition looming,
environmental degradation is taking a back seat in the public�s list of
worries.
One indication of the
possible lack of depth of public concern is EPD�s experience with its 1995
proposal to phase out the use of diesel fuel for all light vehicles in five
years. The proposal would have primarily affected taxi and light bus
operators, who strongly opposed it. Even though these vehicles are among
Hong Kong�s most significant sources of suspended particulates�a visible
problem�the general public did not provide the support needed by EPD to
counter the transport operators� opposition. Consequently, the proposal was
tabled for further study.
Nongovernmental Organizations
Hong Kong has numerous
environmental NGOs. Much of their activity is directed toward public
awareness and education rather than political advocacy and litigation. NGOs
play an advisory role with SPEL on environmental and policy matters (e.g.,
through the Environmental Pollution Advisory Committee, participation in
SPEL�s sustainable development study, and so on), but some believe that they
are not afforded substantive roles in EPD�s regulatory and standard-setting
activities.
8. U.S.
GOVERNMENT ACTIVITIES
The U.S. government presence
in Hong Kong includes the U.S. consulate, U.S. Department of Commerce/U.S.
and Foreign Commercial Service, and US-AEP. The U.S. Agency for
International Development (except US-AEP), U.S. Environmental Protection
Agency, and U.S. Department of Energy have no presence in Hong Kong.
US-AEP
Activities in Hong Kong
US-AEP has supported 115
environmental exchanges to Hong Kong, processed 340 trade leads, and
sponsored twelve technology grants through the National Association of State
Development Agencies, in addition to an environmental technology initiative
through the Council of State Governments. With the U.S. Environmental
Protection Agency, US-AEP has supported environmental action teams,
short-term technical assistance, and training modules.
9. OTHER
BILATERAL AND MULTILATERAL ORGANIZATION ACTIVITIES
Hong Kong joined the
Asia-Pacific Economic Cooperation in 1991 and actively participates in
various working groups addressing development, energy, infrastructure, and
environmental issues in the region.
Hong Kong also actively
participates in the Committee on Trade and the Environment of the World
Trade Organization.
The Hong Kong�Guangdong
Environmental Protection Liaison Group was established in 1990 to improve
cooperation on environmental issues of mutual concern. The various
departments and councils of the Government of Hong Kong also have direct
relations with the corresponding ministries of the central government of the
PRC.
10.
OPPORTUNITIES TO SUPPORT CLEAN PRODUCTION AND ENVIRONMENTAL MANAGEMENT
Policy
Framework
Little opportunity exists for
affecting environmental and industrial policy by the current government. The
pending transition to PRC control in 1997 totally preoccupies the government
and significantly distracts industry as well. Who the decisionmakers will be
after 1997 is unclear.
Many Government of Hong Kong
departments and councils, however, have established contacts and hold
regular meetings with PRC counterparts in Guangdong and with the central
government in Beijing. After 1997, if current government policies and
programs remain in place, environmental policy and framework activities
involving Government of Hong Kong departments and councils may positively
and substantially affect environmental management in post-1997. Some of
these activities include:
Sustainable development
study. EPD�s SUSDEV (sustainable development) 21 Study includes a number
of areas that are strategically important to integrating environmental
considerations into industrial management, including development of (a)
sustainability indicators, (b) a framework for integrating
quantitative methods for evaluating environmental impacts into development
strategies, and (c) a methodology for strategic environmental
monitoring and auditing.
Public reporting. The
mandatory provisions for public disclosure in the pending EIA legislation
have led the Government of Hong Kong to place a new focus on its current
tools for providing public access to environmental information. Furthermore,
the topics of life cycle assessment and ecolabeling are currently the
subject of a major study sponsored by SPEL. Implementation of practical
programs to improve public communication on environmental quality and
industrial environmental performance could have a dramatic, positive impact
on Hong Kong�s environmental quality.
Industrial
Environmental Management
The opportunities to promote
clean technology and cleaner production among Hong Kong
manufacturers are minimal compared to other parts of the region that are
experiencing high industrial growth. The amount of manufacturing that occurs
in Hong Kong has declined in the last ten years and will probably continue
to decline. It now represents only 10�20 percent of total gross domestic
product. Companies that do manufacture in Hong Kong are mostly small,
undercapitalized textile and garment makers, electroplaters, consumer
electronic component makers, and printers with "flatted factories" that are
an obstacle to investment in pollution control technology as well as
significant process improvement.
The influence and control
that Hong Kong traders have over manufacturing in the region, however, is
significant and represents a real opportunity to promote cleaner production
throughout the region. Hong Kong traders are keenly aware of the demands of
the marketplace; many Hong Kong industrialists with factories in South China
field inquiries and entertain site visits from overseas clients focusing on
their environmental, health, and safety practices.
Current industrial
environmental management�related activities of the Government of Hong Kong
(e.g., the Hong Kong Productivity Council ISO 14000 Pilot Program) focus on
factories in Hong Kong. Opportunities exist in Hong Kong to engage
industrialists in a broader sense�perhaps in programs emphasizing
environmental criteria and investment, environment and trade, and
environment and supply chain management. Hong Kong�s move to locate new
manufacturing facilities in industrial estates provides another opportunity.
Environmental
Infrastructure
With the 1997 transition on
the horizon, the outlook for infrastructure privatization remains unclear.
Significant technology transfer opportunities exist, however, to support
environmental projects that are already well along in the pipeline. The
largest wastewater facility in the world, capable of processing 450 million
gallons a day, is being built and run by the Government of Hong Kong.
Fifteen- and thirty-year build-own-transfer projects are coming on-line for
incineration facilities for hospital waste and landfills. The total
opportunities reflect a $2�$3 billion market in the next two years.
Many opportunities also exist to build and operate as well as upgrade and
retrofit new facilities. One major opportunity concerns landfill
restoration. Most environmental infrastructure must conserve space, provide
more economical and less polluting solutions, including advance primary
treatment.
REFERENCES
Centre of Environmental
Technology (CET). Finding Environmental Solutions for Business.
Brochure. Hong Kong. (CET is the executive arm of the Private Sector
Committee on the Environment.)
Chan, Ellen Y. L. 1994. "An
Overview of Clean Technologies in the Hong Kong Industry." Prepared for
POLMET �94 Conference.
ERM Hong Kong. 1996. Waste
Reduction Study: Consultants� Findings and Recommendations. Prepared for
Environmental Protection Department, Hong Kong (March).
Hazen, Christopher and
others. 1994. Hong Kong: Environmental Consulting Services.
Washington, D.C.: U.S. Department of Commerce, International Trade
Administration Market Research Reports (July).
Hong Kong. 1991a. Saving
Our Environment. First Review of Progress on the 1989 White Paper: Pollution
in Hong Kong, A Time to Act. Planning, Environment, and Lands Branch;
Government Secretariat (May).
���. 1991b. Standards for
Effluents Discharged into Drainage and Sewerage Systems, Inland and Coastal
Waters. Technical memorandum. Water Policy Group, Environmental
Protection Department (January).
���. 1993. The Hong Kong
Environment: A Green Challenge for the Community. Second Review of the 1989
White Paper: Pollution in Hong Kong, a Time to Act. Planning,
Environment, and Lands Branch; Government Secretariat (November).
���. 1994�96. Clean
Technology, newsletter nos. 1 (June 1994), 2 (October 1994), and 5
(February 1996). Special Interest Group, Environmental Protection
Department.
���. 1995a. Environment
Hong Kong 1995 (A Review of 1994). Help Us Make a Better World.
Environmental Protection Department.
���. 1995b. Hong Kong: The
Facts, Environmental Protection. Hong Kong Government Information
Services Publication (November).
���. 1995c. Industry
Support Fund. Brochure. Industry Department.
���. 1996a. A Guide to
Environmental Technology and Services in Hong Kong. Industry Department.
���. 1996b. A Guide to
Pollution Control Legislation Affecting Manufacturing Industries 1996.
Infrastructure Support Division, Industry Department (January).
���. 1996c. Heading
Towards Sustainability. Third Review of Progress on the 1989 White Paper:
Pollution in Hong Kong, a Time to Act. Planning, Environment, and Lands
Branch, Government Secretariat (March).
���. 1996d. Reducing
Wastes in Hong Kong. Brochure. Environmental Protection Department.
Hong Kong Productivity
Council (HKPC). 1996. ISO 14000 (EMS) Pilot Programme.
Update no. 3 (April).
���. Partnership for
Productivity. Information Packet.
Miki, Tetsuo. 1995. "Hong
Kong: Pollution Nightmare Now, How About After 1997?" Japan Ecotimes
(July).
Richmond, Henry S. 1993.
"Hong Kong�s �Big 4� in Infrastructure: the Airport, the Port, the
Environment, and Water Supply." Business America (July 12).
Sanders, Gerry. 1995.
Water and Waste Water Management in Hong Kong: An Overview. Hong Kong:
United States-Asia Environmental Partnership (US-AEP).
United States-Asia
Environmental Partnership (US-AEP). 1996a. "Executive Summary: US-AEP Hong
Kong Trip Report on Study Tour to USA on Bleaching and Dyeing Clean
Technology, April 7�13, 1996." Washington, D.C.
���. 1996b. "US-AEP Hong
Kong, Environmental Exchange Program: Clean Technologies for Electroplating
and Metal Finishing" May 1�3, 1996. Washington, D.C.
���. 1996c. "US-AEP/USCS
Environmental Infrastructure Strategy: Hong Kong." Draft. Washington, D.C.
(August).
U.S. Department of Commerce (USDOC).
1996. International Economic Policy Hong Kong Fact Sheet. Washington,
D.C. (June).
ENDNOTES
1. See USDOC (1996). The growing unemployment rate
was also mentioned during interviews with Hong Kong government officials
conducted in June 1996.
2. See USDOC (1996).
3. Staff of the U.S. and Foreign Commercial
Service, Hong Kong (June 1996). Much of the capital investment in China is
channeled through Hong Kong and represents the largest amount of foreign
direct investment in China. More than one million workers cross the border
between Hong Kong and the Guangdong province every day.
4. See USDOC (1996).
5. The issue of limited space for environmental
technology at "flatted" facilities was pointed out by a number of Hong Kong
government officials and private sector representatives during interviews
conducted by John Butler and John Mapes in Hong Kong (June 3�7, 1996).
6. A. G. (Tony) Cooper, deputy secretary
(environment), Secretary of Planning, Environment, and Lands, Hong Kong
(June 3, 1996).
7. C. W. Tse, assistant director, Air Division,
Environmental Protection Department, Hong Kong (June 4, 1996).
8. See Hong Kong (1996c, 17).
9. C. W. Tse, assistant director, Air Division,
Environmental Protection Department, Hong Kong (June 4, 1996).
10. See Hong Kong (1995a, 68�69).
11. See Hong Kong (1993, 25).
12. See Hong Kong (1993, 62�63).
13. See Hong Kong (1996c, 17).
14. See ERM Hong Kong (1996).
15. Recent Industry Department�commissioned reports
and services include Hong Kong (1996a; 1996b); reference books on pollution
prevention and production efficiency for the bleaching and dyeing,
electroplating, and printed circuit board industries; production of an
eco-audit manual and video; and setup of an environmental hotline.
16. The US-AEP assessment team heard this term
cited frequently during the US-AEP country visit conducted by John W. Butler
and John J. Mapes, Hong Kong (June 3�7, 1996).
17. Examples of environmental ordinances and their
numerous amendments and implementing regulations include the following:
Air Pollution Control (APC) Ordinance
APC (Air Control Zone) (Declaration) Order 1989
APC (Furnaces, Ovens, Chimneys) (Installation
and Alteration) Regulations
APC (Fuel Restriction) Regulations
APC (Smoke) Regulations
APC (Specified Processes) Regulations
APC (Motor Vehicle Fuel) Regulations
APC (Vehicle Design Standards) (Emission
Standards) Regulations 1991
APC (Open Burning) Regulations
Building (Demolition Works) Regulations
Road Traffic Regulation
Air Pollution Control Zones (Ten APC ordinances)
Water Pollution Control (WPC) Ordinance (1980)
WPC Regulations 1986
WPC (Ten Water Control Zones) Orders
WPC (Sewerage) Regulation 1994
Waste Disposal (WD) Ordinance (1980)
WD (Chemical Waste) (General) Regulation 1992
WD (Charges for Disposal of Waste) Regulation
WD (Charges for Disposal of Chemical Waste)
Regulation
Sewerage Services Ordinance 1994
Sewerage Regulations 1994, 1996
Dumping at Sea Ordinance 1974
Ozone Layer Protection Ordinance
Environmental Impact Assessment Ordinance (pending)
18. See Hong Kong (1991a; 1995a). Concern for the
environment in Hong Kong can be traced back to 1881, when a study of the
sanitary conditions in Hong Kong led to the creation of a Sanitary Board,
the forerunner of the current Urban Council. The Government of Hong Kong
passed the first Clean Air Ordinance in 1959. As manufacturing activity
accelerated in the late 1960s and 1970s, the government commissioned
numerous studies of related pollution problems and environmental
consequences.
Envisioned by the 1989 White Paper: Pollution in
Hong Kong, a Time to Act and authorized by the Water Pollution Control
Ordinance and related amendments and regulations, the Hong Kong Productivity
Councils require industries with effluent discharge to procure a license.
The license specifies the allowable characteristics of the effluent (e.g.,
chemical oxygen demand and biological oxygen demand limits), based on
whether the effluent is discharged directly into service waters or a sewer
system. Recent regulations have given EPD the authority to require
industries to connect to sewer systems rather than discharging to storm
water drains and to charge for sewerage services.
19. See ERM Hong Kong (1996).
20. David Hall, Hong Kong Drainage Department, Hong
Kong (June 6, 1996).
21. Joe Zorn, Pacific Waste Management, Hong Kong
(June 3, 1996).
22. As of December 1996, the bill was still pending
enactment by the Legislative Council.
23. Hon-ho Wong, assistant director general of
Industry Infrastructure Support, Industry Department, Hong Kong (June 5,
1996).
24. A. G. (Tony) Cooper, deputy secretary
(environment), SPEL, Hong Kong (June 3, 1996); also, see Hong Kong (1996c,
48�49).
25. Terri Mottershead, Bill Barron, Jill Contrell,
and Bryan Bachner, Hong Kong Environmental Law Association, Hong Kong (June
3, 1996).
26. A. G. (Tony) Cooper, deputy secretary
(environment), SPEL, Hong Kong (June 3, 1996); also, see Hong Kong (1996c).
27. See Sanders (1995).
28. See Hong Kong (1996a).
29. See Hong Kong (1996a); US-AEP (1996c).
30. Chandran Noir, ERM Hong Kong, and staff,
Enviropace Hong Kong, Hong Kong (June 4, 1996).
31. US-AEP country assessment visit conducted by
John W. Butler and John J. Mapes, US-AEP (June 3�7, 1996).
32. Fred Tromp, assistant director, Air and Noise
Division, Environmental Protection Department, Hong Kong (June 4, 1996).
33. Some of the major Hong Kong environmental NGOs
include the following:
- Advisory Committee on the Environment (ACE)
- Private Sector Committee on the Environment
- Friends of the Earth Hong Kong
- World Wide Fund for Nature Hong Kong
- The Conservancy Association: Hong Kong
Environment Centre
- Green Power
- Green Lantau Association
- Hong Kong Environmental Law Association
34. Terri Mottershead, Bill Barron, Jill Contrell,
and Bryan Bachner, Hong Kong Environmental Law Association, Hong Kong (June
3, 1996).
35. Edwin C. F. Lau, assistant director, Friends of
the Earth; Yan Wing L. K. Alexander, chief secretary, Green Power; Dr. N. G.
Cho Nam, chairman, Conservancy Association; and Joanne Roxton, senior
conservation officer, World Wildlife Fund |
