BEIJING, Jan. 7 /PRNewswire-Asia/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China's environmental protection industry.
China's environmental protection industry covers a variety of equipment 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.
Currently, China's environmental protection industry includes four major 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 China's environmental protection industry. As an emerging field in the world environmental protection industry, the clean product industry is a new engine of growth for China's environmental protection industry.
I. Review of the Environmental Protection Industry in 2008
1. Industry in a state of healthy development
After almost 30 years of development, China's environmental protection industry has expanded rapidly in size. Operational quality and performance have also been improved further. The industry has become an important part of China's national economy. Preliminary estimates show that in 2008, the total production value in the environmental protection industry topped 800 billion Yuan, maintaining an annual growth rate of over 15%. On the whole, the 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 1.1 trillion Yuan.
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 China. Their level of specialization is also low. Small-sized enterprises with fixed assets of under 15 million Yuan account for over 85% of all the environmental protection enterprises in 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, China's 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), Environmental Minister Zhou Shengxian announced that in the next three years China will raise 1 trillion Yuan for environmental protection. The fund will 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 China.
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 China's environmental protection industry 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 China. Dust removal technologies and equipment will develop along the 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 China will have a vast market.
3. A bright future for new energy
Compared with developed countries, new energy is a relatively new concept in China and related technologies in the country are rather backward and suffer from a low level of industrialization. With China's rich natural 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.
Currently, China's new energy industry is growing fast. New energies including solar, wind and biomass energies are widely used. In 2008, China 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. China's installed generating capacities from wind 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
China's environmental protection industry is a typical policy-led industry. In the past few years, China has introduced over 30 preferential taxation 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 environmental protection, China's environmental protection industry has also greeted new opportunities.
In the face of an increasingly grave situation of ecological environmental protection and with reference to successful international experiences, China is considering the establishment and collection of environmental protection-related taxes. The Refined Oil Tax Reform Program is scheduled for implementation as of January 1, 2009. A separate environmental tax is also 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 Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
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 consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
