Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) John Tsang announced a series of initiatives in his budget Wednesday to promote green industries and energy conservation and improve the living environment.

Tsang made the remarks when delivering the budget speech for the fiscal year 2009-2010 at the Legislative Council in Hong Kong Wednesday morning.

Tsang said the HKSAR government would step up efforts to help people and companies make the most of the opportunities of a green economy.

"Promoting a 'green economy' will enhance Hong Kong's overall competitiveness as well as making it a more livable city," the Financial Secretary said.

Tsang outlined plans for promoting more energy efficient buildings, beautifying the harbor front and introducing electric vehicles to Hong Kong.

"Promoting the use of electric vehicles will create additional business opportunities," said Tsang, who will lead a steering committee to study the wider use of electric vehicles in Hong Kong.

"We will be actively involved in vehicle tests conducted in Hong Kong with a view to introducing electric vehicles into our market early," he said.

The Financial Secretary extended the exemption for electric vehicles from First Registration Tax for a further five years, until March 31, 2014.

To promote more energy efficient buildings, 450 million HK dollars (US$58.06 million) will be set aside over the next two years to install energy-efficient systems in government buildings.

An additional 450 million HK dollars (US$58.06 million) has been earmarked for private building owners to conduct energy audits and improvement works.

"We expect to subsidize more than 1,600 projects," he said. "This will also create business opportunities for related sectors."

The Financial Secretary said Hong Kong would extend existing areas of co-operation with the Guangdong provincial government to improve the environment.

"We will further develop regional high-tech recycling industries, and encourage enterprises to adopt advanced technologies for cleaner production, energy saving and emission reduction," said Tsang.

Tsang said the HKSAR government would also explore the feasibility of the development of Hong Kong Science Park Phase 3 to meet demand for more scientific research facilities in Hong Kong.

On heritage preservation, the Financial Secretary said the first batch of applications that had been approved under the Revitalizing Historic Buildings Through Partnership Scheme would cost approximately 500 million HK dollars (about US$64.52 million).

Tsang earmarked additional funding to bring the level of uncommitted funds under the scheme back to 1 billion HK dollars ( about US$129 million) to support applications for the second batch of historic buildings in the first half of 2009.

The HKSAR government will also provide additional funding for the Harbor Enhancement Committee to take forward research activities with a view to developing harbor front sites into prime leisure spots.

"With increasing demands for a better living environment, promoting investments and economic activities that protect the environment and save energy will put the overall economy on a more sustainable path," Tsang said.

(Xinhua News Agency February 25, 2009)