Work Plan 2001 - Hong Kong

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United States - Asia Environmental Partnership
Work Plan 2001 - Hong Kong

EXECUTIVE SUMMARY
ABOUT USAEP
HONG KONG�S ENVIRONMENT
ACCOMPLISHMENTS IN 2000
COUNTRY STRATEGY
ACTIVITIES GROUPED BY STRATEGIC OBJECTIVE

Executive Summary

USAEP/Hong Kong�s workplan for 2001 is based upon our long-term strategic objectives: promoting technology transfer; developing a strong regional role; policy development and best practices; and, environmental awareness and NGO cooperation. Each of the activities we propose is grouped according to the four strategies and designed to fulfil them, in part or in full.

Technology Transfer:

Seeking out commercial opportunities for U.S. businesses in Hong Kong remains the primary focus of USAEP/Hong Kong. By keeping abreast of the local needs, the latest trends and new policy developments, USAEP/HK can better anticipate opportunities for U.S. companies in the local environmental market.

One of the top goals of USAEP/HK is the promotion of U.S. pollution prevention, resource efficiency and other environmental technologies and practices in those sectors of the Hong Kong economy that have strong commercial potential for U.S. exports. The sectors in which USAEP/HK will focus its efforts in 2001 are buildings, the food processing industry, air pollution and waste.

Most buildings in Hong Kong are not designed, built, operated or demolished in an environmentally sensitive way. Both the government and private developers are increasingly looking to retrofit older buildings with energy efficient technology and to design new buildings to include it. Given the reliance of the Hong Kong economy on the property, this sector offers some of the most significant yet under-exploited market opportunities for U.S. companies. Therefore, USAEP/HK will recruit a delegation of buyers to attend the International Air Conditioning Heating Refrigerating Exposition. This is an opportunity to take buyers from the building sector to a premier trade events with the goal of promoting and selling U.S. products to Hong Kong developers and facility managers.

Following the trade show, USAEP/HK in cooperation with U.S. and Hong Kong partners will recruit U.S. companies to participate in an exhibition of energy efficient and environmentally friendly building products. By doing these programs, we will be able to both identity companies interested in the Hong Kong market and help them make the business partnerships so crucial to success. In conjunction with the opening of the exhibit, USAEP/HK will organize a 1/2 day seminar to allow participating U.S. companies an opportunity to promote their products directly to Hong Kong developers, facility managers, government officials and others. The following two or three days, USAEP/HK will set up a series of one-on-one meetings for the U.S. companies with all interested parties in Hong Kong. The will provide maximum exposure for the U.S. products and increase significantly the opportunity for sales.

USAEP/HK will participate in the Trade Visit to the U.S. organized by EEP for various countries in Asia. The trade visit will target specific energy efficient building products such as energy efficient lighting, heating and cooling equipment, elevators, boilers, water pumps, automatic sensors, etc. based on demonstrated Asian buyer interest.

As food processing remains a sizable industry in Hong Kong with potential as a buyer of U.S. environmental technology, USAEP/HK will recruit a delegation to attend the International Exposition for Food Processors (IEFP) to be held in Las Vegas, NV from October 21-25, 2001. After the show, the delegation will visit U.S. food manufacturers, processing and packaging companies to learn their best manufacturing practices and environmental programs.

Finally, USAEP/HK will recruit a swine producer representative to participate a meeting in U.S. with presidents of the swine producer associations from Asia. The participants will learn the best available U.S. swine waste treatment technologies.

Regional Role:

Given Hong Kong�s role as a key financial center for all Asia, the investment decisions made by Hong Kong�s financial institutions have a significant impact on the environment of the entire region. Despite this apparent sophistication, few local banks or insurance companies fully understand and/or have a proven ability to manage environment risk. Therefore, USAEP/HK will co-organize a one-day seminar in cooperation with the Hong Kong Association of Banks. It will be targeted at senior managers from banks, insurance companies, and other financial institutions who will learn the fundamentals of lending procedures that take into account environmental risk assessment. By enhancing the ability of participating banks to properly manage their environmental risk, USAEP/HK will provide greater incentive for borrowing entities throughout the region to significantly improve their environmental performance. This type of activity will have a ripple effect on corporate practices throughout the region, and thus create market opportunities for U.S. environmental companies.

USAEP/HK will explore opportunities for Hong Kong to become a regional center for emissions trading by sponsoring a U.S. emissions trading expert to come to Hong Kong to conduct research on this issue. It will assess the potential impact and costs of market-based instruments for controlling emissions in the region, as well as assess the capacity of industry and power generators to respond to the economic signals provided by the market-based instruments. USAEP/HK will also co-sponsor a regional workshop upon completion of the study to publicize the results. By partnering early with this emerging and influential think tank, USAEP/HK is further positioning itself as one of the foremost environmental players in Hong Kong. This enhanced relationship will enable USAEP/HK to act as one of the think tank�s primary problem-solvers by channeling the strengths of U.S. companies toward local and regional environmental challenges.

Pending approval, USAEP/HK will leverage funds from the State Department Environmental Diplomacy Fund to facilitate a five-part videoconference series to assist Hong Kong in finding solutions to cross-boundary and local pollution problems. By engaging is these types of high-level cross-boundary discussions, USAEP/HK is better able to identify issues and markets for U.S. companies.

Policy Development and Best Practices:

Hong Kong policymakers and others can benefit greatly from an open exchange of ideas and practices with U.S. environmental professionals and government officials. USAEP/HK will continue to support public and private exchanges that seek to further advance the understanding of various environmental issues that are of mutual interest for Hong Kong and the United States, particularly as they relate to broader policy concerns.

A USEPA official and private building specialists will speak at a one-day seminar on the concept of healthy buildings to an audience of government officials, academics, developers, and construction, architectural, and building management companies. Areas of focus will include: sick building syndrome, indoor air pollution, air ventilation design, economic considerations of air quality, energy conservation, building maintenance and management.

Environmental Awareness and NGO Cooperation:

One of the great hurdles to further environmental improvement in Hong Kong is the low degree of awareness and activism of the people of Hong Kong. USAEP/HK will continue to work to improve these conditions as they directly affect the willingness of small and medium-size enterprises to improve their environmental performance.

USAEP/HK will also seek to provide assistance to local organizations that are working to protect Hong Kong�s natural heritage. To this end, USAEP will sponsor two U.S. speakers to provide a two-day training workshop for engineers, ecologists, and scientists on an ecological approach to stream and river management. The course will cover the importance of environmentally friendly engineering techniques, provide examples from similar climatic regions on less damaging or restorative freshwater management projects, and there will be discussion of the pros and cons of ecological engineering techniques.

About USAEP

The United States-Asia Environmental Partnership (US-AEP) is a public-private and interagency partnership of the U.S. Agency for International Development (USAID) with the Department of Commerce, the U.S. Environmental Protection Agency, other U.S. government and state agencies, and the private sector. Created in 1992 by a Presidential initiative, US-AEP promotes the adoption of clean, efficient technologies, policies and practices by Asian industries, cities, and governing entities. The context of US-AEP�s engagement is economic as well as environmental, harnessing the broad-based desire in Asia for accelerated but cleaner economic growth to drive a �clean revolution� of sustainable development. US-AEP�s approach is to pursue sustainable change in the way Asia proceeds with the industrial and urban growth needed to address poverty through a development assistance approach founded on two basic premises:

� To form a nexus between sustainable development and trade, particularly with the United States, to the mutual benefit of each; and

� To create and promote lasting partnerships, locally, regionally and internationally, that will carry on beyond the reach and longevity of development agencies.

US-AEP�s approach to fostering a transformation to clean growth is to engage key decision makers in the public and private sectors, and harness those forces which serve as incentives for change: market, political, corporate, regulatory, and public advocacy. Ultimately, the future of the environment in Asia will be determined by these key Asian decision-makers, including individuals, institutions, and the general public.

US-AEP targets four main areas related to the interdependent goals of environmental quality and economic growth:

� Public policy and environmental regulation;

� Urban environmental management;

� Corporate governance and environmental management; and

� The transfer of U.S. environmental technology, expertise and practices through trade and investment.

Woven throughout these four areas is an emphasis on energy and resource efficiency and other measures that reduce greenhouse gas emissions and thereby mitigate the impact of developing Asia on global climate change.

In order to leverage resources from outside the U.S. government and to create self-sustaining partnerships that will outlive development assistance, US-AEP enlists the expertise and commitment of U.S. and Asian stakeholders: professional associations, large multinational corporations, small-to medium-sized U.S. private sector firms, U.S. states, and Asian and American municipalities and non-governmental organizations. Through the partnership of USAID and the Department of Commerce, Asia�s environmental quality and economic growth are mutually advanced by connecting Asia�s decision-makers with the best in American environmental technology and expertise.

US-AEP�s engagement with a wide variety of partners serves another key component of the US-AEP vision: supporting U.S. foreign policy interests and fostering improved international relations in many sectors of American society. By facilitating the active participation of the business community and public sector at state and municipal levels, US-AEP makes development assistance relevant to Americans not normally directly concerned with international relations.

Hong Kong�s Environment

Introduction

Hong Kong is one of Asia's leading and most affluent cities, and it aspires to world-class status. With one of the busiest ports in the world, it has long been touted as the Gateway to China. Known for the entrepreneurial spirit of its people, the quality of its infrastructure, and its low tax, laissez-faire approach to governance, Hong Kong has always been a city that thrives on trade and puts business first. Hong Kong has attracted a large number of multinational companies many of which have established regional headquarters here due to the fair and transparent implementation of the rule of law and the quality of life afforded to expatriate professionals.

In 1997, the former colony of the United Kingdom was reunited with the People's Republic of China under the policy of "one country-two systems." As such, Hong Kong autonomously manages its own internal affairs, with the PRC having authority over Hong Kong's foreign policy and national defense. Over the past three years, the efficacy of this policy of non-interference by the Mainland remains an area of some contention, particularly concerning disputes over court rulings and the right of abode. For the environment, it has proven a hindrance, with concern over interference providing another obstacle for eventual trans-boundary environmental cooperation.

After a very painful recession brought about by the financial and economic crisis that affected the entire Asian region, Hong Kong�s economy began to recover in 1999 and is expected to grow steadily throughout 2000. In the first quarter of 2000, GDP grew by nearly 15 percent with some economists calling for 10 percent real growth for full-year 2000.

Hong Kong has faced numerous environmental challenges. Ten years ago, the government realized the extent of the problem, and responded with typical Hong Kong efficiency. Over the past decade, considerable resources have been directed at improving the quality of the environment. The necessary legal framework was put in place and the resulting environmental regulations aggressively enforced by the Environmental Protection Department. Unfortunately, other government departments continue to view environmental protection as solely the purview of EPD. For example, the declining quality of Hong Kong's air continues to be headline news in the international press, yet the Transport Department still views air pollution as EPD's problem and continues to favor road development over rail.

Over the past decade, much of Hong Kong's manufacturing base has moved into southern China. The ownership of these factories, however, remains largely in the hands of Hong Kong businesses. The shift was caused in small part by inadequately enforced environmental standards in China, but while environmental regulations respect legal borders, the resulting pollution does not. Accordingly, in addition to pollution generated locally, Hong Kong is faced with the increasingly daunting task of addressing trans-boundary pollution.

In his most recent Policy Address, the Chief Executive made clear the government's increasing commitment to tackle Hong Kong's environmental problems.

�A real change in the quality of Hong Kong's environment needs more than just cleaning up litter and enforcing environmental laws,� said Mr. Tung. �It requires a fundamental change of mindset.�

The Chief Executive embraced that new mindset by making the environment one of his top three priority issues for the coming year.

This new commitment by the government can in large part be traced to the activist stance that the business community has taken. They have correctly identified environmental degradation as an important threat to Hong Kong's overall competitiveness. There is anecdotal evidence that businesses looking to set up a headquarters in Asia are choosing other cities because of the declining quality of Hong Kong's environment, particularly given the high cost of living in the SAR.

It is, ironically, the business community, and not the public that is driving this new concern. Environmental awareness is slowly increasing among the general populace, but overall it lags far behind that of other world cities. Too many residents still believe that the government is entirely responsible for the environment and that they, as individuals, can have little impact. It is this fundamental mindset that Mr. Tung is trying to change.

That is not to say that the government's commitment has been small. Recurrent public expenditure for the Environmental Protection Department was nearly $450 million U.S. dollars in 1999. Moreover, the government has announced it will spend nearly $4 billion additional dollars over the next ten years on a variety of environmental initiatives.

Much of this effort may be to little avail if the regional environment continues to deteriorate. China's rapid industrialization has come at a price. A price that Hong Kong pays each winter when seasonal winds blow China's air pollution into the SAR. Hong Kong also sits at the mouth of the Pearl River, and thus is also the recipient of increasing loads of water pollution. Tackling this problem will require a much greater degree of cooperation with the Mainland. This too was among the Chief Executive's policy goals. However, concrete action to achieve those goals, however, has been delayed due to bureaucratic hurdles.

Environmental Issues by Sector

Green Buildings

Hong Kong has one of the most dense and vibrant urban environments in the world. As much of the manufacturing and industrial base has relocated elsewhere, Hong Kong has become an increasingly service-oriented economy. Hong Kong's buildings are increasingly reflecting this shift as factories give way to new office towers and residential apartments.

Most buildings in Hong Kong are not, however, designed, built, operated or demolished in an environmental sensitive way. Few developers use green building products, such as appropriate glazing and energy efficient lighting and HVAC systems, and often the building staff is not trained to properly operate integrated building management systems. Both the government and developers are increasingly looking to retrofit older buildings with energy efficient technology and to design new buildings to include it. Given the reliance of the Hong Kong economy on the property, this sector offers some of the most significant yet under-exploited market opportunities for U.S. companies.

The government is also currently reviewing comments on its proposed indoor air quality certification scheme. Following the finalization of this consultation process, the government will accept bids to implement the scheme.

Air

Air pollution in Hong Kong remains a prominent issue, not only because of it's effect on the health of city residents, but also because high levels of air pollution have tarnished Hong Kong's image as a business center and tourist destination. Most locally generated air pollution is from the diesel-heavy transport sector.

The government acknowledges this and is moving to phase out diesel taxis by the year 2006. In the meantime, the high particulate levels in Hong Kong have created an urgent need to find ways to substantially reduce the emission from existing diesel engines. A total of $1.4 billion has been earmarked by the Hong Kong government as grants to owners of taxis, light buses and other pre-Euro standard diesel vehicles (which totals around 100,000) for the purpose of switching over to LPG, the installation of particulate traps and the fitting of catalytic converters. The government is also exploring longer term measures, such as conducting feasibility studies on an electric trolley bus system and other electrically powered vehicles, and examining the possibility of increasing the use of natural gas to partly replace other fuels for vehicles and power-generation.

Solid Waste

Last year, Hong Kong produced about 45,000 tons of solid waste every day, much of it was from construction and demolition sites. After recycling, there were still over 8,000 tons of municipal waste and 7,000 tons of construction and demolition materials dumped at the landfills each day, and as a result Hong Kong's three state-of-the-art landfills are filling up much more quickly than expected. The government is exploring ways to reduce waste, increase the recycling rate, and provide an alternative to landfills.

The government has plans to construct new waste separation facilities, and it will be consulting the community in the coming year on proposals for new waste management facilities, including waste-to-energy incinerators, for a total investment of over $1.3 billion over the next decade.

Medical waste treatment and disposal is another priority issue. Over the past two years, in response to increasing stringent disposal laws, hospitals have been required to develop waste management practices that minimize the volume of hospital waste. The Hospital Authority has plans to upgrade existing waste segregation equipment and adopt new pre-treatment waste procedures. They are also looking into ways to safely dispose of clinical waste, including the use of autoclaves, microwaves and modular incinerators.

Water

In early 1999, the government announced their intention to consider privatizing drinking water treatment and distribution facilities. There is very little detail at this point about the extent and scope of their privatization efforts. In the meantime, the Government is upgrading its existing treatment systems to deal with the deteriorating quality of its raw water supply coming into Hong Kong from the Dongjiang river in China.

The government is also making progress on its massive sewage collection and treatment scheme. Upcoming phases of the project offer numerous commercial opportunities for design, construction and engineering firms.

Accomplishments in 2000

The year 2000 marked a successful year of creating partnerships. As our vision statement on the last year�s workplan proclaimed that our aim is continue to become �an integral part of Hong Kong�s efforts to tackle local and regional environmental problems.� In FY 2000, USAEP/HK worked proactively with key environmental organizations in Hong Kong to carry out our planned activities that to deliver these goals and ideas. USAEP was able to use its modest funding to facilitate numerous activities which all had a very high USAEP cost-share.

Air Pollution

Air pollution remained one of the government�s top priorities last year, particularly with regard to locally generated diesel emissions. USAEP/HK responded by identifying appropriate U.S. technologies to reduce diesel exhaust for Kowloon Motor Bus Company. KMB, the largest local bus company, operates a fleet of more than 9,000 buses in Hong Kong. USAEP/HK helped facilitate the sale and installation of 1,800 U.S. catalytic converters on existing diesel buses. The conversion plan is currently ahead of schedule, and in less than ten months, more than 1,200 converters have been installed. With assistance from USAEP, Engelhard Inc will generate $2.1 million in sales.

In November 1999, two Hong Kong EPD officers participated in a U.S. study tour on mobile air emissions technology and management. The exchange was praised highly and the officers have learnt proven U.S. technology in emission control, and traffic and transport management. The Hong Kong officers have since shared their U.S. experience with other EPD colleagues and have applied this knowledge to tackle air pollution problems and helped map out a comprehensive package for dealing with mass transport planning and management.

Waste Reduction and Recycling

In response to the government�s Waste Reduction Framework Plan to reduce, reuse, and recycle waste, USAEP/HK sponsored a U.S. solid waste specialist in a waste management conference on September 1999 to speak on U.S. waste management technologies and practices. The conference attracted nearly 200 attendees, mostly government officials, engineers, and practitioners. As a result, the U.S. expert, a first time visitor to Hong Kong, made important local connections. As a result of these contacts, his company has chosen to participate in the International Conference on Waste Management in Asian Cities on October 2000 as an exhibitor. This will further strengthen the U.S. � Hong Kong relationships on technology exchange.

USAEP/HK had held two catalog shows in conjunction with two local conferences, namely Waste Management 1999 and Recycle 2000 on September 1999 and May 2000. Fifteen U.S. companies total participated in the two shows thus greatly increasing their local profile and the potential for buyers. As a result, one U.S. company identified a local investment partner to bid on the refuse transfer station project in the North East Kowloon district.

Hazardous and Medical Waste

Treatment of hazardous and medical waste is a controversial issue in Hong Kong in light of the chicken flue syndrome and the dioxin emission from conventional incineration. USAEP/HK responded by sending both a regulator and a hospital administrator to participate in a medical waste seminar in Kuala Lumpur on October 1999. The goal was to learn the best available medical waste treatment methods. As a result of these activities (with the first U.S. medical waste study mission in early 1999), the Hong Kong Hospital Authority is examining various means of waste treatment technology. The Hong Kong Environmental Protection Department will be drafting a set of new disposal guidelines for medical/clinical waste disposal which will fully incorporate U.S. guidelines and best practices.

Energy Efficiency and Green Building

In response to the call from the Hong Kong Chief Executive on energy savings, USAEP/HK helped organized a workshop on energy efficiency on building management on November 1999. A US EPA official was invited to speak on the EPA�s Green Lights Programs in front of an audience of twenty building professionals. The U.S. speaker had mentioned a new building project � the Four Times Square in the New York City � as an example of the state-of-the-art energy efficient and green building. As a result, a professor from the Hong Kong Polytechnic University had visited the Four Times Square in June 2000 and learned the design, fuel cell technology, and the application of the building materials of a green building. The professor was praised by the USAEP�s support and will organize a green building seminar in November 2000 to further introduce sound U.S. building technology to the local building and construction industry.

In October 1999, USAEP/HK with the conjunction of the Polytechnic University co-organized a training workshop on indoor air quality for building professionals. A US EPA air specialist made a presentation on healthy buildings using the latest U.S. regulations as a basis for discussion. As a result, the Hong Kong government officials learnt the good U.S. practices and it imposed a positive impact in the wake of government�s initiative to apply a classification system to control indoor air quality. Realizing the increasing market opportunities on energy efficiency market, USAEP/HK completed an industry sector analysis report on Energy Efficiency Equipment for Building and Construction Industry to identify the best sales prospects and business opportunities in the building sector.

Water and Wastewater

USAEP/HK completed an industry sector report on Privatization of Water Treatment Works to identify the best prospects and investment opportunities on the water treatment sector. USAEP/HK led a 9-member delegation to the WEFTEC 1999 and a sales agreement was reported after the conference.

Business and Environmental Education

The Centre of Environmental Management Education and Development (CEMED) was established in November 1999 with assistance from USAEP in the form of a grant from the Council of State Governments. The Centre aims to encourage Hong Kong agencies and businesses to adopt environmental management techniques. One of the first initiatives for the Centre is to develop a curriculum for business students on environmental management and practice using the Hong Kong�s success cases. In June 2000, USAEP/HK sponsored Mr. Paul Hawken at the invitation of CEMED to make a few presentations on his forward thinking on combining business and environmental sustainability. Mr. Hawken presented a topic �Natural Capitalism - Sustainable Paths to Wealth Creation� on a business luncheon hosted by the Hong Kong Business Coalition on the Environment. As a result, most attendees including local business leaders were convinced of protecting environment is not just about conservation, but it is about staying in business for the future.

US DOC/Commercial Indicators

Hong Kong is at the stage of economic recovery since the Asian financial crisis in late 1997. Deflation and strong local currency (peg with U.S. dollar) have crippled Hong Kong for import products, therefore, non-U.S. products can often find more price competitive because of the currency factors. The demand of the U.S. environmental products is still strong because of the quest for higher environmental standards and quality. USAEP/HK strives to promote the transfer of U.S. equipment and ideas from the United States to Hong Kong and provide market information to U.S. companies who want to export to this market.

a) Export Success:

U.S. Company	Hong Kong Company	Date of Transaction	Type of Transaction	Amount of Sales (if applicable)
Chemtech International Inc.	Trident Engineering Company Ltd.	August 2000	Agent / Distributor Agreement	-
Chemtech International Inc.	Far East International Engineering Company Ltd	August 2000	Agent / Distributor Agreement	-
Chemtech International Inc.	Serious Staging Company Ltd.	August 2000	Direct Sale	US$10,300

b) Gold Key, Trade Lead, and Market information report

No. of Gold Key:        1
No. of Trade Lead:      44
No. of IMIs:                 22
No. of ISAs:                2

Country Strategy

Hong Kong is highly industrialized with a fairly sophisticated environmental policy, regulatory and enforcement regime. As a result, Hong Kong industry and government have substantial experience in tackling the full range of environmental challenges faced by rapidly industrialized economies. Having already cleaned up many of the "legacy" environmental problems of the past, the Hong Kong government is now focused more on environmental quality and management issues on a proactive basis. These factors have begun to shift USAEP priorities in Hong Kong toward pollution prevention, waste reduction, resource efficiency and environmental monitoring. In addition, Hong Kong's long-standing position as an economic success with close ties throughout the region affords an opportunity to diffuse environmental practices to other Asian countries.

Strategic Objectives

I. Promote U.S. environmental exports to key sectors within Hong Kong.

II. Recognize Hong Kong's position to promote improvements in environmental management and business practices in countries in the region.

III. Assist in policy development and the transfer of best environmental practices in key environmental areas.

IV. Increase public awareness of and sensitivity to environmental issues.

Strategies

I. Technology Transfer: Promote U.S. pollution prevention, resource efficiency and other environmental technologies and practices in those sectors of the Hong Kong economy that have the best commercial potential for U.S. exports.

� Much of Hong Kong�s economy is centered on property development. Buildings throughout their lifecycle have been identified as the focus of several critical environmental concerns, including solid waste reduction during building construction and demolition, to energy and resource efficiency during operations. The constant renewal and expansion of Hong Kong�s built environment offers great opportunities for U.S. producers of energy efficient and environmentally friendly building materials and practices.

� Food Processing, Textiles, and Electronics & Electrical machinery account for nearly 65 percent of the region's domestically produced exports, and will continue to lead economic recovery for Hong Kong. As targets of environmental regulatory enforcement they are therefore motivated to invest in environmental solutions.

� The high-priority topic of outdoor air quality is closely associated with vehicle emissions. USAEP/HK will design programs to assist in further policy development, and will promote U.S. suppliers of emissions reduction equipment, alternative fuel technology, and air quality monitoring equipment, with emphasis placed on inclusion in pilot projects. Indoor air quality will also be the focus of activities designed to introduce appropriate engineering concepts, operating practices and monitoring technologies.

� As Hong Kong struggles to handle an ever increasing waste stream, the government is heavily promoting waste minimization, recycling and reuse technologies. USAEP/HK will also promote appropriate U.S. products and technologies as the government moves forward with its infrastructure plans.

The USAEP/HK will design a coordinated mix of grants, exchanges, trade lead development and sales assistance activities that target these specific sectors.

II. Regional Role: Encourage Hong Kong businesses that have ties to other regional economies to act as examples and diffuse information on environmental management and best practices throughout the region.

Hong Kong's long-standing position as an economic success story with strong business ties to other economies in the region affords an opportunity to diffuse environmental management and practices beyond Hong Kong's boundaries. Successful business development and environmental protection in Hong Kong can be held up as examples of sound economic and environmental practice in general. USAEP/HK will continue to promote effective environmental practices by focusing on those Hong Kong businesses that maintain facilities, or trading relationships with other economies of the region.

III. Policy Development and Best Practices: Assist in policy development and the transfer of best environmental practices in key environmental areas.

Hong Kong policymakers and others can benefit greatly from an open exchange of ideas and practices with U.S. environmental professionals and government officials. USAEP/HK will continue to support public and private exchanges that seek to further advance the understanding of various environmental issues of mutual interest for Hong Kong and the United States, particularly as they relate to broader policy concerns.

IV. Environmental Awareness and NGO Cooperation: Assist the Hong Kong government and local NGO's in developing educational programs that bridge the gap between environmental challenges and public awareness of these programs.

It has been widely observed that many of Hong Kong's most pressing environmental challenges (water quality, air quality, waste reduction and energy and resource conservation) are under-recognized by the population in general. With so much government and private concern focused on business and economic development, environmental issues are often overlooked until conditions become critical. In an effort to promote sustainable development and more long-range environmental planning, USAEP/HK will work with the government and local NGO's in developing educational programs to raise public awareness of environmental matters.

Activities Grouped by Strategic Objective

I. Technology Transfer

Seeking out commercial opportunities for U.S. businesses in Hong Kong remains the primary focus of USAEP/Hong Kong. By keeping abreast of the latest trends and policy developments, USAEP/HK can better anticipate opportunities for U.S. companies in the local environmental market.

� Construction, operation and demolition of buildings;

� Food processing industry;

� Mobile source pollution and indoor air quality; and

� Waste reduction, recycling and incineration.

Buildings:

Most buildings in Hong Kong are not designed, built, operated or demolished in an environmentally sensitive way. Few developers use green building products, such as appropriate glazing and energy efficient lighting and HVAC systems, and often the building staff is not trained to properly operate integrated building management systems. Both the government and private developers are increasingly looking to retrofit older buildings with energy efficient technology and to design new buildings to include it. Furthermore, since the Hong Kong government�s plans to allow water to be used in air conditioning units, there will be a large market for water-cooled chillers in Hong Kong in the near future.

Given the reliance of the Hong Kong economy on the property, this sector offers some of the most significant yet under-exploited market opportunities for U.S. companies. Therefore, USAEP/HK will recruit a delegation of buyers to attend the International Air Conditioning Heating Refrigerating Exposition to be held in Atlanta, GA from February 26-28, 2001. While in Atlanta, HK/TR will assess directly the interest of U.S. companies in participating in Activity 1.2. This is an opportunity to take buyers from the building sector to a premier trade events with the goal of promoting and selling U.S. products to Hong Kong developers and facility managers.

Following the trade show, USAEP/HK in cooperation with U.S. and Hong Kong partners will recruit 15 � 20 companies to participate in an exhibition of energy efficient and environmentally friendly building products. By doing these programs, we will be able to both identity companies interested in the Hong Kong market and help them make the business partnerships so crucial to success. In conjunction with the opening of the exhibit, USAEP/HK will organize a 1/2 day seminar to allow participating U.S. companies an opportunity to promote their products directly to Hong Kong developers, facility managers, government officials and others. The following two or three days, USAEP/HK will set up a series of one-on-one meetings for the U.S. companies with all interested parties in Hong Kong. The will provide maximum exposure for the U.S. products and increase significantly the opportunity for sales.

Finally, USAEP/HK will participate in the Trade Visit to the U.S. organized by EEP for various countries in Asia. The trade visit will target specific energy efficient building products such as energy efficient lighting, heating and cooling equipment, elevators, boilers, water pumps, automatic sensors, etc. based on demonstrated Asian buyer interest. The US-AEP/HK will identify and recruit local buyers with pending procurements and for identifying the specific interests of the buyers. The trade delegation will visit three US cities spending three days in each location. Each city will include site visits to buildings to see energy efficient technology in place and opportunities to meet with the technology manufacturer or supplier. In San Francisco and Chicago a mini-expo of energy efficient technologies will be held.

Food Processing:

USAEP/HK will recruit a delegation to attend the International Exposition for Food Processors (IEFP) to be held in Las Vegas, NV from October 21-25, 2001. After the show, the delegation will visit U.S. food manufacturers, processing and packaging companies to learn their best manufacturing practices and environmental programs.

Air:

USAEP/HK will host a 3-day business forum in Hong Kong for U.S. air pollution control technology companies to match-make specific project opportunities with Asian buyers. The forum will consist of technical sessions on project specific presentations from Asian buyers and one-on-one meetings between the Asian and U.S. companies. The participants will also learn various U.S. Government�s export assistance tools in facilitating the course of business transaction.

Waste:

USAEP/HK will sponsor two U.S. environmental solid waste specialists to speak at the ISWA conference on waste management and incineration technologies. In addition, the two U.S. speakers will also lead and teach a one-day short course �Incineration and Landfilling of Solid Waste� to local environmental practitioners and landfill operators.

USAEP/HK will recruit the president of the swine producer association in Hong Kong to participate a conference for swine producers in Honolulu. The participants will learn the new U.S. technologies, equipment, and designs from the experience gained obtained by the joint U.S./Taiwan swine waste treatment centre in Pingtung, Taiwan.

Other Opportunities:

Commercial opportunities are not limited, however, to the above four market sectors. Countless other opportunities exist for a wide range of companies. USAEP/HK will continue to support and encourage trade delegations of companies from geographic regions or key sectors to come to Hong Kong. Similarly, we will seek out opportunities to send trade delegations to the United States from Hong Kong. We will use those tools that best enable us to give U.S. companies whatever competitive advantage is possible � the Green Keys Service and the Agent Distributor Search. Within Hong Kong, we seek to more actively promote the Environmental Technology Network for Asia among local businesses and other potential buyers.

A. Building Products

Activity I.A.1 � International Air Conditioning Heating Refrigerating Exposition

US-AEP Activity Description

Country: Hong Kong

Activity Name: International Air Conditioning Heating Refrigerating Exposition

PMG: 4

Description of Activity:

Given the reliance of the Hong Kong economy on the property, this sector offers some of the most significant yet under-exploited market opportunities for U.S. companies. Therefore, USAEP/HK will recruit a delegation to attend the International Air Conditioning Heating Refrigerating Exposition to be held in Atlanta, GA from February 26-28, 2001. This exposition is one of the best trade shows in the United States for building�s air ventilation, automation & control, indoor air quality, and eco-efficient products. While in Atlanta, HK/TR will assess directly the interest of U.S. companies in participating in Activity 1.2.

Expected Results:

� Generate interest by U.S. companies in this Hong Kong market sector.

� Facilitate the sales of U.S. air ventilation and indoor air quality technologies.

� Strengthen networking opportunities between local and U.S. indoor air ventilation sectors.

Relationship to US-AEP Country Strategy:

Promote U.S. environmental technologies to building sector.

Asian and Regional Partners:

Center of Environmental Technology, Hong Kong Institution of Engineers, American Society Heating Refrigerating and Air Conditioning Engineers Association � Hong Kong Section

US-AEP Partners:

NASDA, Environmental Technology Export (DOC)

Anticipated Cost Share:

USAEP will arrange ground transportation, and other logistical arrangements. Hong Kong participants will pay for air fare and lodging expenses.

Milestone Dates:

November 2000 Begin recruitment

January 2001 Delegation formed

February 2001 Completion of the trade mission

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.4 � Increased transfer of U.S. environmental technology

Date: September 20, 2000

Activity I.A.2� Revolving Exhibit, Promotional Seminar and Matchmaker

US-AEP Activity Description

Country: Hong Kong

Activity Name: Revolving Exhibit, Promotional Seminar and Matchmaker

PMG: 4

Description of Activity:

USAEP in cooperation with U.S. partners will recruit 15 � 20 companies in the building sector to participate in an exhibition of energy efficient and environmentally friendly building products. USAEP would oversee construction of an exhibit that would remain in operation for a period of one to two months, during which the developers, facility managers, members of the public and other interested groups would have the opportunity to view the displays. The Centre of Environmental Technology agrees to provide the exhibit space, staff time and expertise as an in-kind contribution. CET would also be willing to enter into agent/distributor agreements with U.S. companies on an individual ad hoc basis.

Organized in conjunction with the opening of the exhibit of U.S. environmental building products, this 1/2 day seminar will allow participating U.S. companies an opportunity to promote their products directly to Hong Kong developers, facility managers, government officials and others. In addition to participating companies, an appropriate green building expert identified by EEP will provide an overview of trends in this sector. This will be followed by the opening of the exhibit by senior members of government and business. Seminar participants will then be able to tour the exhibit and speak with U.S. company representatives about their products. During the following two or three days, USAEP/HK will set up a series of one-on-one meetings for the U.S. companies with interested parties in Hong Kong.

Expected Results:

� Facilitate the sales of U.S. environmental technologies.

� Strengthen networking, outreach, and market information.

Relationship to US-AEP Country Strategy:

Promote U.S. environmental technologies to key industrial sectors in Hong Kong.

Asian and Regional Partners:

Center of Environmental Technology, Real Estate Developers Association, Hong Kong Facility Managers Association, Hong Kong Government (Electrical and Mechanical Services Department, Architectural Services Department).

US-AEP Partners:

IIE, ETNA, Environmental Technology Export (DOC), appropriate US trade or professional associations. California Fuel Cells Partnership

Anticipated Cost Share:

CET will provide in kind contribution of exhibit and seminar space, and staff time. U.S. companies will provide their products free of charge on a temporary basis and pay for shipping charges. Further sponsorship will be sought from key Hong Kong partners.

Milestone Dates:

February 2001 Completion of recruitment of participating U.S. companies.

June 2001 Completion of the first exhibition.

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.4 � Increased transfer of U.S. environmental technology

Date: September 20, 2000

B. Food Processing

Activity I.B � Cleaner Production for Food Processing Industry � Study Mission

US-AEP Activity Description

Country: Hong Kong

Activity Name: Cleaner Production for Food Processing Industry � Study Mission

PMG: 1

Description of Activity:

Expected Results:

� Facilitate the sales of U.S. environmental technologies.

� Strengthen networking of local and U.S. food processing companies.

Relationship to US-AEP Country Strategy:

Promote U.S. environmental technologies to the food manufacturing/processing sector.

Asian and Regional Partners:

Hong Kong Food Manufacturers Association, Center of Environmental Technology

US-AEP Partners:

NASDA, DOC

Anticipated Cost Share:

USAEP will arrange site visits, ground transportation, and other logistical arrangements. Hong Kong participants will pay airfare and lodging expenses.

Milestone Dates:

September 2001 Delegation formed

October 2001 Completion of the study mission

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.4 � Increased transfer of U.S. environmental technology

Date: September 20, 2000

C. Air

Activity I.C � Business Opportunities in the Air Pollution Control Sector

US-AEP Activity Description

Country: Hong Kong, India, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, Vietnam

Activity Name: Business Opportunities in the Air Pollution Control Sector

PMG: 1

Description of Activity:

Objectives

To provide a business forum for US air pollution control technology companies to match-make specific project opportunities with Asian buyers.

To encourage greater US participation in providing air pollution control technologies to the Asian market

To showcase the US expertise in this sector

To provide outreach to the Asian buyers and US suppliers on US government export assistance tools

Background

Air pollution represents a significant threat to human health in the majority of Asian cities. The concern about the economic and social impacts of poor air quality is leading to increased requirements for air emissions control and reduction for both mobile and stationary sources. The manufacturing and transportation sectors of Asian economies are particularly affected which represents significant potential for US exports.

The US experience shows that the most effective USG sponsored commercial events offer information on project specific opportunities to US companies. Matching US air pollution control expertise with Asian buyers of environmental technology will successfully address environmental problems with US technologies.

US-AEP Technology Representatives, through their networks and contacts, are uniquely positioned to provide the market intelligence necessary to interest US business. Tech Reps will be responsible for identification and recruiting Asian buyers with specific projects for which air pollution technology purchases are required. Tech Reps will be responsible for identifying and recruiting Asian buyers with specific projects for which $1 million worth of air pollution technology purchases are required.

The workshop will be co-sponsored by the US-AEP, Trade and Development Agency (TDA), Overseas Private Investment Corporation (OPIC), and the Export-Import Bank (Ex-Im). The US-AEP, TDA, OPIC, and US Ex-Im have a shared mission of promoting greater US private sector participation in international markets, particularly in areas such as the environment where US technological capability is strong.

Business Forum Agenda

Day One - Overview of the US expertise represented by the US companies followed by project specific presentations from Asian buyers.

Day Two - Brief presentations from the US export assistance and financing agencies (e.g. US-AEP, TDA, OPIC and EXIM) on the mechanisms available for trade finance.

Day Three - One-on-one meetings between the Asians and the US companies. USG representatives will serve as a resource for participants.

Audience: Senior executives from US air pollution control technology companies

Asian government and industry officials responsible for procurement

When: May 2001

Where: Hong Kong

Expected Results:

� Technology Transfer 1.4

Relationship to US-AEP Country Strategy:

Promotion of US technologies and equipment to control pollution

Asian and Regional Partners:

Asian environmental trade association

Chambers of Commerce

Asian bank/financial host

US-AEP Partners:

Anticipated Cost Share:

1) Trade and Development Agency

Travel and Per Diem for 35 Asian Buyers to Hong Kong

2) US Companies

International Air Travel of US Companies to Hong Kong

3) Hong Kong

4) USG

Travel and per diem of staff to Hong Kong

Milestone Dates:

Production of Forum Materials � December 2000

Identification of Asian Projects � January 2001

Recruitment of US Companies � February, 2001

Conference Convenes � May 2001

Lead Responsibility for US-AEP: Lynne Steingass, US-AEP Environmental Exchange Program

Primary Intermediate Result:

IR 1.4 � Increased transfer of U.S. environmental technology

Date: August 15, 2000

D. Solid Waste

Activity I.D.1 � International Symposium & Exhibition on Waste Management in Asian Cities

US-AEP Activity Description

Country: Hong Kong

Activity Name: International Symposium & Exhibition on Waste Management in Asian Cities

PMG: 4

Description of Activity:

USAEP/HK will sponsor two U.S. environmental solid waste specialists to speak at the ISWA conference on waste management and incineration technologies. In additional, the two U.S. speakers will also lead and teach a one-day short course entitled �Incineration and Landfilling of Solid Waste� to local environmental practitioners and landfill operators.

Expected Results:

� Promote the sales of U.S. waste reduction, recycling, and treatment technologies.

� Facilitate technology exchange on various waste treatment technologies.

Relationship to US-AEP Country Strategy:

Promote U.S. environmental technologies to the waste treatment sector.

Asian and Regional Partners:

Hong Kong Waste Management Association, Environmental Protection Department

US-AEP Partners:

IIE

Anticipated Cost Share:

USAEP will sponsor the two U.S. speakers� travel and lodging expenses during the conference period, and during one additional day for the short course.

Milestone Dates:

October 23-26, 2000 Completion of the ISWA Conference

October 27, 2000 Completion of the 1-day training course

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.4 � Increased transfer of U.S. environmental technology

Date: September 20, 2000

Activity I.D.2 � Meeting in U.S. with Presidents of the Swine Producer Associations from Asia

US-AEP Activity Description

Country: Hong Kong, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand

Activity Name: Meeting in U.S. with Presidents of the Swine Producer Associations from Asia

PMG: 1

Description of Activity:

Activities are clusters of exchanges, workshops, events and other initiatives intended to accomplish a larger result

Objective

To offer the Presidents of the Swine Producer Associations in Asia the opportunity to obtain American technologies, equipment, and designs from the joint US/Taiwan �Environmental Center for Livestock Waste Management� at the National Pingtung University of Science and Technology (NPUST) in Taiwan.

Background

1. These association presidents are businessmen whose members all face the same common issues and challenges of managing swine wastes in their countries.

2. The association presidents have never met and have expressed an interest to get personally and professionally acquainted with their counterparts to exchange information, issues, and solutions.

3. MOST IMPORTANTLY, these association presidents in the Asia region can be viewed as either �gatekeepers� or "multipliers" in informing their members on the existence and benefits of the Environmental Center for Livestock Waste Management .

Agenda

The meeting is specifically designed to be informal without speeches and rigid protocol. The first day will be co-chaired by USAEP and NPUST and will include only the Asian presidents and their members. Such private sessions are critical for industry executives to build trust and rapport among their peers without having to be scrutinized by outsiders.

On the second day, a multi-media presentation will be made by USAEP and Taiwan on the Environmental Center for Livestock Waste Management. Performance tests and economic cost/benefit analysis will be presented to compare against local Asian and traditional U.S. systems.

The third and last day will be devoted to American industry, universities, and USDA�s Agriculture Research Service presenting on future waste treatment technologies that are being commercialized or that are on the drawing boards.

A number of social events hosted by American private industry will be held throughout the meetings as �ice-breakers� so that a dialogue may be comfortably opened with many of the U.S. stakeholders. At this early stage, several American sponsors have indicated the possibility of participating ranging from U.S. equipment manufacturers to the American Soybean Association and the U.S. Feed Grains Council.

WHEN: The meeting is scheduled during the week of February 19, 2001.

WHERE: Honolulu, Hawaii that is midway for travel by the Asians and Americans.

Expected Results:

include links to US-AEP Intermediate Result indicators, if possible

Technology Transfer

Relationship to US-AEP Country Strategy:

Promotion of U.S. technologies and equipment; management of solid wastes; and treatment of wastewater streams.

Asian and Regional Partners:

Old partner: National Pingtung University of Science and Technology in Taiwan

Anticipated Cost Share: -

Milestone Dates: Meeting convened week of February 19, 2001

Lead Responsibility for US-AEP: Mary Wong, IIE and Randy Yamada, USAEP Secretariat

Primary Intermediate Result: I.R. 1.4 � Tech Transfer

Date: July 24, 2000

E. Multi-Sectoral

Activity I.E � Catalog Show of U.S. Environmental Products

US-AEP Activity Description

Country: Hong Kong

Activity Name: Catalog Show of U.S. Environmental Products

PMG: 4

Description of Activity:

USAEP/HK will host a multi-sector catalog show of U.S. environmental products as a cost-effective means to promote and facilitate new business partnerships and sales agreements. We anticipate recruiting at least 40 U.S. companies to participate.

In the past, USAEP/HK has hosted a multi-sector catalog show as part of the broader Annual Business and Industry Environment Conference. However, the organizers no longer include an exhibition in with their conference schedule. Thus, USAEP/HK will independently organize an event that provides an opportunity for all U.S. companies to participate. (USAEP/HK will continue to do individual sector-based catalogue shows as opportunities arise.)

Expected Results:

� Facilitate Sales of U.S. equipment and services

Relationship to US-AEP Country Strategy:

Promote U.S. environmental products in Hong Kong

Asian and Regional Partners:

Centre of Environmental Technology, Centre of Environmental Management, Education and Development.

US-AEP Partners:

ETNA (to help identify US participants)

Anticipated Cost Share:

Cost of event to be paid by participating U.S. companies

Milestone Dates:

March 2001

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.4 � Increased transfer of U.S. environmental technology

Date: September 20, 2000

II. Regional Role

Hong Kong's long-standing position as an economic success story with strong business ties to other economies in the region affords an opportunity to diffuse environmental management and practices beyond Hong Kong's boundaries. Successful business development and environmental protection in Hong Kong can be held up as examples of sound economic and environmental practice in general. USAEP/HK will continue to promote effective environmental practices by focusing on those Hong Kong businesses that maintain facilities or trading relationships with other economies of the region.

Financial Institutions:

Emissions Trading:

USAEP/HK in cooperation with former legislator Christine Loh�s new environmental think tank will explore opportunities for Hong Kong to become a regional center for emissions trading. USAEP/HK will sponsor a U.S. emissions trading expert to come to Hong Kong to conduct research on this issue. This expert will explore the opportunities for companies, governments and other public bodies to engage in emissions trading in the region, and to examine whether a system can be developed that will reduce the impact of emission on human health and climate change in an economically sound way. The proposed research will study and summarize international experience in emissions trading to date in order to understand the requirement for successful implementation in Asia. It will assess the potential impact and costs of market-based instruments for controlling emissions in the region, as well as assess the capacity of industry and power generators to respond to the economic signals provided by the market-based instruments. USAEP/HK will also co-sponsor a regional workshop upon completion of the study to publicize the results. By partnering early with this emerging and influential think tank, USAEP/HK is further positioning itself as one of the foremost environmental players in Hong Kong. This enhanced relationship will enable USAEP/HK to act as one of the think tank�s primary problem-solvers by channeling the strengths of U.S. companies toward local and regional environmental challenges.

Cross-Boundary Dialogue:

USAEP/HK will facilitate and guide a five-part videoconference series to assist Hong Kong in finding solutions to cross-boundary and local pollution problems. In conjunction with the videoconference series, a small-group study mission will be arranged to travel to the United States to meet with experts and visit sites relating to cross-boundary issues. Based on our ideas and initiative, the U.S. Consulate General in Hong Kong has submitted a request for $73,900 in Environmental Diplomacy Fund (EDF) monies to support these events. No USAEP funds will be needed to support this program, but if approved, USAEP/HK will like to call upon the services of EEP to help identify key U.S. partners to participate in the video-conferences. It is due to USAEP/HK�s stature within the Consulate as the foremost environmental experts that our colleagues in the Economic and Political Section relied on us to develop this proposal. USAEP will be instrumental in ensuring its success, but without any financial burden. By engaging is these types of high-level cross-boundary discussions, USAEP/HK is better able to identify issues and markets for U.S. companies.

Activity II.A � Conference on Environmental Risk Management for Financial Institutions

US-AEP Activity Description

Country: Hong Kong

Activity Name: Conference on Environmental Risk Management for Financial Institutions

PMG: 3

Description of Activity:

USAEP will be responsible for identifying and sponsoring two high-level U.S. banking experts to make presentations at the conference. They will speak on topics including: Managing Environmental Risk within Financial Institutions; Cost-Benefit Rationale for Implementing Environmental Risk Management; Case Study for Environmental Risk Management in Asian Cities; and Transforming Risk into Opportunities. It is strongly believe that following this introductory course, area banks and others will be eager to participate in successive seminars without any further financial commitment by USAEP.

By enhancing the ability of participating banks to properly manage their environmental risk, USAEP/HK will provide greater incentive for borrowing entities throughout the region to significantly improve their environmental performance. This type of activity will have a ripple effect on corporate practices throughout the region, and thus create market opportunities for U.S. environmental companies.

Expected Results:

� Facilitate the consideration of environmental risk for project investments.

� Increase awareness of environmental risk assessment for local financial professionals.

Relationship to US-AEP Country Strategy:

Promote improvements in environmental risk management for financial institutions in Hong Kong.

Asian and Regional Partners:

Hong Kong Association of Banks, Hong Kong Productivity Council, Hong Kong Environmental Protection Department

US-AEP Partners: IIE

Anticipated Cost Share:

USAEP will sponsor travel and lodging costs for two U.S. financial/environmental experts, and the costs for the training materials. Other sponsors will contribute the costs for the venue, other speakers, and incidental expenses.

Milestone Dates:

November 2000 Completion of the conference

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.3 � Improved corporate environmental management

Date: September 20, 2000

Activity II.B � Emissions Trading Research Initiative

US-AEP Activity Description

Country: Hong Kong

Activity Name: Emissions Trading Research Initiative

PMG: 1

Description of Activity:

This expert will explore the opportunities for companies, governments and other public bodies to engage in emissions trading in the region, and to examine whether a system can be developed that will reduce the impact of emission on human health and climate change in an economically sound way. The proposed research will study and summarize international experience in emissions trading to date in order to understand the requirement for successful implementation in Asia. It will assess the potential impact and costs of market-based instruments for controlling emissions in the region, as well as assess the capacity of industry and power generators to respond to the economic signals provided by the market-based instruments.

USAEP/HK will also co-sponsor a regional workshop upon completion of the study to publicize the results.

By partnering early with this emerging and influential think tank, USAEP/HK is further positioning itself as one of the foremost environmental players in Hong Kong. This enhanced relationship will enable USAEP/HK to act as one of the think tank�s primary problem-solvers by channeling the strengths of U.S. companies toward local and regional environmental challenges.

Expected Results:

� Facilitate the development of a system of emissions trading.

� Build capacity toward future climate change mechanisms.

� Build up a network of interested parties on this issue.

Relationship to US-AEP Country Strategy:

Assist in policy development and the transfer of best environmental practices; recognize Hong Kong�s ability to promote the concept of emissions trading in countries in the region.

Asian and Regional Partners:

Office of Christine Loh

US-AEP Partners:

The Policy Group, EEP

Anticipated Cost Share:

USAEP will fund the U.S. expert and cosponsor the workshop.

Milestone Dates:

September 2001 Completion of the workshop

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.1 � Improved public policy and environmental regulations

Date: September 20, 2000

Activity II.C � Cross-Boundary Dialogue Video Conference Series

US-AEP Activity Description

Country: Hong Kong

Activity Name: Cross-Boundary Dialogue Video Conference Series

PMG: 1

Description of Activity:

It is due to USAEP/HK�s stature within the Consulate as the foremost environmental experts that our colleagues in the Economic and Political Section relied on us to develop this proposal. USAEP will be instrumental in ensuring its success, but without any financial burden. By engaging is these types of high-level cross-boundary discussions, USAEP/HK is better able to identify issues and markets for U.S. companies.

Expected Results:

� Enhanced ability to identify key issues and markets for U.S. companies.

� Find solutions to pollution problems stemming from sharing a common airshed and watershed within the Pearl River Delta basin.

� Identify commonalities between the problems facing the U.S. and Hong Kong, and their solutions.

Relationship to US-AEP Country Strategy:

Assist in policy development and transfer of best environmental practices for cross-boundary issues.

Asian and Regional Partners:

Hong Kong Environment and Food Bureau, Hong Kong Environmental Protection Department

US-AEP Partners:

EEP

Anticipated Cost Share:

U.S. Consulate General in Hong Kong has submitted a request for fixed amount in Environmental Diplomacy Fund (EDF) monies to support this series of events. No USAEP funds will be committed to this project.

Milestone Dates:

February 2001 Completion of the first Videoconference

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.1 � Improved public policy and environmental regulations

Date: September 20, 2000

III. Policy Development and Best Practices

USAEP/Hong Kong will assist in the development of key environmental policies in Hong Kong and promote the transfer of best environmental practices in key areas.

Hong Kong policymakers and others can benefit greatly from an open exchange of ideas and practices with U.S. environmental professionals and government officials. USAEP/HK will continue to support public and private exchanges that seek to further advance the understanding of various environmental issues of mutual interest for Hong Kong and the United States particularly as they relate to broader policy concerns.

A USEPA official and private building specialists will speak at the one-day seminar on the concept of healthy buildings. Areas of focus include: sick building syndrome, indoor air pollution, air ventilation design, economic considerations of air quality, energy conservation, building maintenance and management. The morning session will be an introductory course focused on the fundamentals of the �green� concept applied to building construction and design. The afternoon sessions will use U.S. case studies to demonstrate the economic and social benefits that result from the application of various environmentally sound building practices.

We estimate 100 participants, mostly professionals from government, academia, developers, construction, architectural, and building management companies.

Activity III � Healthy Building Seminar

US-AEP Activity Description

Country: Hong Kong

Activity Name: Healthy Building Seminar

PMG: 1

Description of Activity:

USAEP/HK will co-organize a one day workshop on health and energy efficient buildings. Using 4 Times Square as the model, an official from USEPA, the architect, the efficiency consultant, and a few equipment suppliers will participate in a one-day seminar on the concepts of healthy and efficient buildings.

Areas of focus include: fuel cell technology, sick building syndrome, indoor air pollution, air ventilation design, economic considerations of air quality, energy conservation, building maintenance and management. The morning session will be an introductory course focused on the fundamentals of the �green� concept applied in building construction and design. The afternoon sessions will use 4 Times Square as a case study to demonstrate the economic and social benefits that result from the application of various environmentally sound building practices. The event will also provide a platform for U.S. companies to promote their products and services to potential buyers in Hong Kong. We anticipate conducting matchmaker or other facilitation services for the U.S. companies.

We estimate 100 local participants, mostly professionals from government, academia, developers, construction, architectural, and building management companies. This program is part of a broader effort to engage in the building sector in Hong Kong.

Expected Results:

� Share and learn the best practices for environmentally sustainable building construction and design in the United States.

� Enhance and facilitate the incorporation of best building practices into local projects.

Relationship to US-AEP Country Strategy:

Support Hong Kong country objectives to promote U.S. environmental technologies and best practices in resource efficiency pertaining to building operations.

Asian and Regional Partners:

Hong Kong Polytechnic University, Architectural Services Department, Electrical and Mechanical Services Department, Real Estate Developers Association.

US-AEP Partners:

USEPA, IIE

Anticipated Cost Share:

USAEP/HK will only cover travel and lodging expense for the U.S. building specialist. Other expenses including the travel sponsorship for the USEPA official, who will already be traveling in Asia on other business, will be funded by other participating partners.

Milestone Dates:

November 2000 healthy building seminar and subsequent meetings with Hong Kong government officials.

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.4 � Increased transfer of U.S. environmental technology

Date: September 20, 2000

IV. Environmental Awareness and NGO Cooperation

One of the great hurdles to further environmental improvement in Hong Kong is the low degree of awareness and activism of the people of Hong Kong. USAEP/HK will continue to work to improve these conditions as they directly impact upon the willingness of small and medium size enterprises to improve their environmental performance.

USAEP/HK will provide assistance to local organizations that are working to protect Hong Kong�s natural heritage. To this end, USAEP will sponsor two U.S. speakers to provide a two-day training workshop for engineers, ecologists, and scientists on an ecological approach to stream and river management. The course will cover the importance of environmentally friendly engineering techniques, provide examples from similar climatic regions on less damaging or restorative freshwater management projects, and there will be discussion of the pros and cons of ecological engineering techniques.

Finally, USAEP will also commit staff time ad hoc to assist with projects undertaken by local organizations, such as Earth Day, World Environment Day and other environmental awareness projects.

Activity IV � Stream and River Training Workshop

US-AEP Activity Description

Country: Hong Kong

Activity Name: Stream and River Training Workshop

Description of Activity:

The workshop would be participatory, to utilize local knowledge and expertise in the engineering sector, but would be facilitated by U.S. speakers with practical experience in utilizing bioengineering techniques in freshwater management.

Expected Results:

� Facilitate technology exchange and experience for stream and river management.

� Increase public awareness of stream and river protection.

Relationship to US-AEP Country Strategy:

Increase public awareness of and sensitivity to stream and river protection.

Asian and Regional Partners:

University of Hong Kong, Civic Exchange

US-AEP Partners:

U.S. Corps of Army Engineers, IIE

Anticipated Cost Share:

USAEP will sponsor two U.S. speakers� travel and lodging expenses during the workshop period

Milestone Dates:

May 2001 Completion of the workshop

Lead Responsibility for US-AEP: TR/HK

Primary Intermediate Result:

IR 1.2 � Increased urban environmental management

Date: September 20, 2000