CCID Consulting: Review of China’s Environmental Protection Industry in 2008 and Outlook for 2009
research, consulting and IT outsourcing service provider, and the first
Chinese consulting firm listed in
HK08235), recently released its article on
and services and often overlaps with other industries. In a more narrow sense,
it is an industry which provides equipment and services for environmental
pollution control, pollutant emission reduction and clearance, and waste
treatment — products and services for “end control”. In a broad sense it also
covers management services and support for all the links of the whole
production process. It not only includes “end control” but also embraces
“clean production” which minimizes pollutant emission and raw material
consumption as well as the whole process management from the extraction of raw
materials at the beginning to the treatment of eventual wastes after the use
of products, thus involving all the links of the production and use of
products, the treatment, disposal or recycle of wastes.
sub-industries: production of environmental protection products, comprehensive
utilization of resources, environmental protection services and clean products.
Among them, the first three sub-industries belong to “the environmental
protection industry” in the narrow sense and are the core of the industry.
They form the backbone of
emerging field in the world environmental protection industry, the clean
product industry is a new engine of growth for
I. Review of the Environmental Protection Industry in 2008
1. Industry in a state of healthy development
After almost 30 years of development,
industry has expanded rapidly in size. Operational quality and performance
have also been improved further. The industry has become an important part of
production value in the environmental protection industry topped
industry continued to show a stable growth momentum. It is forecasted that at
the end of the Eleventh Five-Year Plan period, the annual production value in
the industry will reach
2. The need for a balance between product and corporate structure
While many of the leading products facing a saturated market due to over
supply, Chinese enterprises have yet to develop their technologies to
manufacture some urgently needed pollution control equipment. Foreign
equipment occupy a major part of the market share.
The industry concentration ratio is relatively low. Enterprises are small
and dispersed, while large enterprises account for less than 5% of the total
environmental protection enterprises in
is also low. Small-sized enterprises with fixed assets of under
the country so it is difficult to form the scale merit.
3. Technology achievements drive industrial process
In recent years, guided by the Hi-tech industrialization policies,
environmental protection industry has heightened efforts to develop, innovate
and promote environmental protection technologies, with new technologies,
processes and products emerging from time to time. In 2008, a series of
technologies achievements for urban sewage treatment and resources reuse,
seawater utilization, industrial and organic waste water treatment, water
treatment drug development, film technology development and application, tail
gas purification and catalysis technologies and solid waste control were made
in various localities. These technologies have been industrialized, thus
greatly improving the overall competitiveness and profitability of the
environmental protection industry.
II. Outlook for the Environmental Protection Industry in 2009
1. The Industry Will Continue to Maintain Fairly Fast Growth
The environmental protection industry will become a main force in boosting
domestic demand. At the 2008 Annual Meeting of the China Council for
International Cooperation on Environment and Development (CCICED),
be mainly used in emerging industry fields in new and renewable energy
development, energy, water and material conservation, and pollution control.
In particular, the development of nuclear power, wind power and solar energy
will be the focus. The State will nurture these industries as new economic
growth points in
Meanwhile, the State will focus on nurturing and supporting backbone
environmental protection enterprises, and guide small- and medium-sized
enterprises to develop into specialized, featured, high precision enterprises.
For this, the Ministry of Environmental Protection is now formulating
corresponding development strategies, policies and standards for the
environmental protection industry.
2. End Control Products Are Still in Hot Demand
In 2009, product development in
will continue to focus on “end control”. The demand for sewage and waste water
treatment technologies and equipment will remain high. It will be mainly
concentrated in the development and manufacturing of urban sewage concentrated
treatment set equipment, sewage treatment equipment and related products for
urban residential quarters, and industrial waste water treatment set equipment.
As dust removal technologies and equipment are in high demand in various
industries, there is a wide industrial basis for smoke and dust removal in
directions of accommodating both dust removal and desulfurization.
Desulfurization technologies and set equipment manufacturing for power plants
will become a hot area. The government-led top-down desulfurization storm will
inject tremendous vitality into the desulfurization market. Industrial boiler
desulfurization equipment which suits the national conditions in
have a vast market.
3. A bright future for new energy
Compared with developed countries, new energy is a relatively new concept
suffer from a low level of industrialization. With
resources and huge market demand, guided and supported by relevant government
policies, the new energy field will become a hot area for investment. The
level of technological utilization is rising gradually. There is a fairly big
room for further growth.
including solar, wind and biomass energies are widely used. In 2008,
accounted for over half of the solar water heater population in the world. In
terms of solar photovoltaic cell production capacity, the country has risen to
the 2nd place in the world.
and biomass energies are also increasing rapidly. The new energy industry will
open a new field for the environmental protection industry.
4. Environmental Protection Tax to Be Introduced
In the past few years,
policies to promote clean production and consumption. With the founding of the
Ministry of Environmental Protection at the start of the year and the
subsequent introduction of a series of new standards and policies for
greeted new opportunities.
In the face of an increasingly grave situation of ecological environmental
protection and with reference to successful international experiences,
is considering the establishment and collection of environmental protection-
related taxes. The Refined Oil Tax Reform Program is scheduled for
implementation as of
under deliberation. Meanwhile, some existing taxes may be reformed and
improved in 2009 including raising resources and consumption taxes and
expanding the coverage of taxation in order to push forward the “Green” reform
of the taxation system and promote the coordinated development between the
economy, society, resources and the environment.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the
first Chinese consulting firm listed in the Growth Enterprise Market of the
Stock Exchange (GEM) of
affiliated with China Center for Information Industry Development (hereinafter
known as CCID Group). Headquartered in
up branch offices in
over 300 professional consultants after many years of development. The
company’s business scope has covered over 200 large and medium-sized cities in
Based on major areas of competitiveness: industrial resources, information
technology and data channels, CCID Consulting provides customers with public
policy establishment, industry competitiveness upgrading, development strategy
and planning, marketing strategy and research, HR management, IT programming
and management. CCID Consulting’s customers range from industrial users in
electronics, telecommunications, energy, finance, automobile, to government
departments at all levels and diversified industrial parks. CCID Consulting
commits itself to becoming the No. 1 advisor for enterprise management, the No.
1 consultancy for government decisions and the No. 1 brand for informatization
For more information, please contact: Cynthia Liu Coordinating Manager CCID Consulting Co., Ltd. Tel: +86-10-8855-9080 Email: email@example.com
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