Hong Kong's Environmental Protection Department has renewed the license for the Castle Peak Power Station.

"The renewed licence under the Air Pollution Control Ordinance will come into effect on August 1, 2007 and remain valid until end 2009," said an EPD spokesman in a prepared statement. "The emission caps on sulphur dioxide, nitrogen oxide and particulates, have been further tightened up. In 2009, the allowed emissions from the station will be 15% - 27% lower than the 2005 levels."

To improve air quality, the Hong Kong Special Administrative Region Government reached a consensus with the Guangdong Provincial Government in April 2002 to reduce, on a best endeavor basis, the emission of four major air pollutants, namely sulphur dioxide, nitrogen oxides, respirable suspended particulates and volatile organic compounds by 40%, 20%, 55% and 55% respectively in the region by 2010, using 1997 as the base year.

Power generation is the biggest local source of air pollutants in Hong Kong and the government's policy to impose emission caps on power plants and progressively tighten the caps is aimed at ensuring Hong Kong will achieve its 2010 emissions reduction targets.