The Environmental Protection Department is committed to meeting environmental challenges. During the year, the department focused on tackling air pollution, implementing a policy framework for managing municipal solid waste and pursuing preparatory steps for Stage 2 of the Harbour Area Treatment Scheme.

Hong Kong, with a paltry 1104 square kilometres of land, is home to 6.9 million people. But it is also one of the world's largest trading economies. Its steep mountains allow it only 225 square kilometres on which to put up buildings for people to live in and to work in. Strict control over urban development is, therefore, imperative. Over 400 square kilometres of what remains are designated as 'protected areas'. These include country parks, special areas and conservation zones. Understandably, the heavy concentration of people and activities in a small area strains the environment, particularly the air in it. Hong Kong is also increasingly affected by air pollution in the Pearl River Delta (PRD) region.

Tackling air pollution continued to be a government priority in 2006. A campaign called 'Action Blue Sky' was launched in July to rally the public behind the efforts for better air quality. The Government also stepped up action to improve water quality in Victoria Harbour and to better manage municipal solid waste.