China has ordered coal-fired power plants in Beijing, Shanghai and other major cities to install emission controls to reduce the release of sulphur dioxide into the atmosphere. The new requirements were issued by the State Environmental Protection Administration in early October. China Daily did not say what sort of sulphur reductions were required or when the equipment would have to be installed.
Power producers are being charged higher than expected environmental protection costs, reported South China Morning Post. The new rules, introduced by the Chinese authorities on July 1, charge fees on pollutants over a specified threshold. Lehman Brothers' analyst Angello Chan said the market had widely believed the fees were only for sulphur emissions, but actually about half covered the discharge of other pollutants, such as nitrogen oxide.