CLP : Power Commits to Long-Term Decarbonisation and Calls for a Community-Wide Effort to Combat Climate Change

中華電力有限公司

CLP Power Hong Kong Limited

3 September 2019

CLP Power Commits to Long-Term Decarbonisation and

Calls for a Community-Wide Effort to Combat Climate Change

CLP Power Hong Kong Limited ("CLP Power") today (3 September) announced it has submitted a response paper to the Council for Sustainable Development's public engagement on a long-term decarbonisation strategy for Hong Kong. Although 2050 seems a long way away, we all need to start planning now for a lower carbon future. CLP Power sees two broad directions to increase low-carbon electricity supply in the longer term. Both have their opportunities as well as challenges and elements of both could in future be combined. Technology in the energy sector is changing fast and we will need time for further study to maximise the opportunities that these could bring. CLP Power is determined to maintain high levels of safe and reliable electricity supply, whichever future approach we may adopt in decarbonising electricity generation.

The two broad directions are:

1. Increasegas-firedgeneration:More gas-fired units could be built in Hong Kong and the use of natural gas would be increased along with maximising local renewable energy and zero-carbon energy continuing to be imported through CLP
   Power's clean energy transmission system infrastructure. This amounts to a more gradual approach to decarbonisation initially. In the longer term, however, this could bring about further carbon reduction if new technologies, such as zero- carbon hydrogen or carbon capture and storage, develop and become viable.
2. Increasezero-carbon energy through regional cooperation: Morezero-carbonenergy, such as renewable energy and nuclear power, could be accessed from the mainland through new interconnection infrastructure. This could mean potentially earlier reductions in emissions.

In our response paper, we highlight both the challenges and the opportunities of what will be a complex transformation process. We hope the response paper will help the community better understand the implications of different possibilities and choices in switching to lower carbon living.

CLP Power Managing Director Mr T K Chiang said: "Carbon emission is a key factor in global warming and all countries have to reduce their emissions if the worst consequences are to be avoided. Other cities have already published ambitious plans for carbon reduction and as a world city we need to play our part. It will take a sustained effort throughout the community and from all sectors of the economy.

1

CLP Power supports the need for deep decarbonisation of electricity generation. When this public engagement has concluded and the future policy is subsequently formulated by the Government, we will use our power expertise to support this to ensure a reliable, efficient and low-carbon electricity supply for our customers."

The full version of CLP Power's Response Paper can be accessed through this link.

About CLP Power Hong Kong Limited

CLP Power Hong Kong Limited ("CLP Power") is the Hong Kong utility subsidiary wholly owned by CLP Holdings Limited, a company listed on the Hong Kong Stock Exchange and one of the largest investor-owned power businesses in Asia. CLP Power operates a vertically integrated electricity supply business in Hong Kong, and provides a highly reliable supply of electricity and excellent customer services to 6 million people in its supply area.

- Ends -

2