The Hong Kong Government is seeking to improve local air quality through linking the power companies' permitted rate of return to their emission-cap achievement, Secretary for the Environment Edward Yau says.

Speaking on a radio program, Yau said emission levels of nitrogen oxides, breathable suspended particulates and volatile organic compounds had come down over the past five years, but sulfur dioxide emissions had increased by 30%. The major reason is increased emissions from the power plants, he added.

The Chief Executive also announced in the Policy Address he planned to ask the Legislative Council to approve funding of HK$93 million for the Hong Kong Productivity Council to launch a five-year program to encourage about 1,000 Hong Kong enterprises in Guangdong to play their part in improving the regional environment.