the regulatory structure of water, soil, solid waste and atmosphere has been formed, and the construction of ecological civilization has been deepened. there is no doubt that the environmental protection industry will start a new phase in 2019. from the era of policy sowing to the era of full-scale deep cultivation, under the new pattern, environmental protection policy will force the acceleration of environmental protection industry. the subdivisions of black and odorous water treatment, rural domestic sewage treatment, air pollution control, soil remediation, solid waste pollution control and environmental protection monitoring will usher in new opportunities for development. in this paper, the composition of the industrial chain, the characteristics of the industry and the situation faced, and the trend of the key areas of subdivision, etc. will give you a prospect of the new momentum and opportunities for the development of environmental protection industry.
elements of environmental protection industry chain
technological product development, commercial circulation, resource utilization, information service and project contracting for the purpose of preventing and controlling environmental pollution, improving ecological environment and protecting natural resources all belong to the category of environmental protection industry.
according to the product service field, environmental protection industry can be divided into water pollution control, air pollution control, solid waste control and soil remediation.
water pollution control refers to the use of certain technical methods to separate pollutants contained in sewage or convert them into harmless substances, so that sewage can be purified, or further meet the water standards for reuse.
air pollution control is divided into desulfurization, denitrification and dust removal. the industry policy orientation is clear. the adjustment of industrial structure and the release of market demand depend on the promotion of policy.
solid waste can be divided into industrial solid waste, domestic waste and hazardous waste, the latter accounting for a small proportion.
soil remediation refers to the use of physical, chemical and biological methods to transfer, absorb, degrade and transform contaminants in soil, so as to reduce their concentration to an acceptable level, or to transform toxic and harmful pollutants into harmless substances.
water pollution control, air pollution control and solid waste control are dominant in the whole environmental protection industry.
panorama of environmental protection industry
photo source: cathaysia happiness industry research institute
characteristics of environmental protection industry
environmental protection industry is a policy-driven industry with public welfare attributes. environmental protection industry is similar to national defense industry and has little correlation with macro-economy, but it has close relationship with industry policy, benefits are enjoyed by the people, even across national boundaries, because it is difficult for the payer to define and has strong externality, which makes the development of environmental protection industry must have government intervention and regulation, and other social events such as haze, oil spill, factory explosion will also affect environmental protection. industry has a strong driving role.
environmental protection industry has high industry barriers. it is mainly reflected in three aspects: capital, technology and qualifications. firstly, capital barriers, such as sewage treatment, belong to capital-intensive industries, with large investment in general projects and long payback period, which have strong financial pressure on investors; secondly, technical barriers, whether sewage treatment, atmospheric treatment or solid waste treatment, have high technical barriers. only by mastering professional technology and possessing high-quality professionals can we do this. the third is the qualification barrier. enterprises need relevant qualifications to carry out design, operation and engineering services, and to engage in sewage treatment and hazardous solid waste disposal.
in recent years, a series of new policies, such as the new environmental protection law, environmental ppp model, third-party governance and vertical management of environmental supervision, have been introduced, and major reforms have been made in the subject of responsibility, regulatory system, pollutant charges, emission permits and emission trading. during the twelfth five-year plan period, the total investment in environmental protection of the whole society was 4.17 trillion yuan, with an average annual growth of nearly 10%. the total investment in environmental protection of the government was 839 billion yuan, with an average annual growth of 14.5%. among them, the central government spent nearly 180 billion yuan on special environmental protection funds, an increase of 140% over the 11th five-year plan. especially after the three "ten articles" came out, the investment increased continuously.
situation of environmental protection industry
with the continuous strengthening of full coverage supervision and the changing market demand, the development of environmental protection industry will enter a stage of rapid differentiation. first, the concentration of the industry has been continuously improved, and "shuffling" has been accelerated. under the background of new and old momentum conversion and financial risk prevention, the general trend of de-inventory and de-leverage is that small and medium-sized enterprises are facing difficulties in financing and elimination when they enter the capital winter, and the environmental protection industry is no exception. at the same time, some leading enterprises take the opportunity to expand their influence, and the environmental protection industry as a whole has entered the stage of "shuffling". according to the "development report of china's environmental protection industry in 2017", in 2017, a share of environmental protection listed companies realized a total revenue of 184.79 billion yuan, an increase of 23.2% over the same period of last year, and net profit of 197.4 billion yuan, an increase of 12.6% over the same period of last year. obviously, the growth rate of revenue of listed companies is higher than the overall growth rate of the industry, and the industry concentration is constantly increasing. previously, the entry threshold of environmental protection industry was low, which led to the concentration of many small enterprises lacking core competitiveness. however, with the increasing requirements of the industry, these small enterprises are naturally facing the crisis of being eliminated. second, the advantages of state-owned enterprises are outstanding. the development of environmental protection industry in china is more driven by policies. compared with private enterprises, state-owned enterprises have natural credit advantages. although the industry is speeding up "shuffling", the threat to large state-owned enterprises is not great. in addition, the environmental protection industry has the attributes of people's livelihood services, coupled with fierce competition in domestic environmental protection industry, resulting in low profits, so in the process of integration, the advantages of state-owned enterprises are prominent. third, small and medium-sized environmental protection enterprises can survive the "shuffling" period only if they have core competitiveness. during this round of integration, many small and medium-sized environmental protection enterprises will be eliminated and eliminated. at the same time, the market share of small and medium-sized environmental protection enterprises in the whole industry is declining, and the market pattern shows the trend of differentiation between leading enterprises and small and medium-sized enterprises. survey data show that the income growth rate of smes in 2017 is significantly lower than that of listed enterprises. if some small and medium-sized enterprises do not have their own core technology, they just blindly pull projects and compete at low prices, which may lead to the decline of economic benefits of enterprises, or even be eliminated. therefore, in the long run, a group of small and medium-sized enterprises without core competitiveness will face more and more difficulties.
key areas and trends of environmental protection segmentation industry
1. the situation of water pollution is grim and the market of water pollution control is vast.
according to the national eco-environmental quality profile 2018, only the rivers in the northwest and southwest of china account for 29% of the water quality of iv and below. other river sections are polluted. the yellow river, songhua river, huaihe river and liaohe river basins are slightly polluted, while the haihe river basin is moderately polluted. of 111 important lakes (reservoirs), 12 (10.7%) belong to inferior category v. taihu lake, chaohu lake and dianchi lake are slightly, moderately and severely polluted, respectively. in 1940 water quality sections (sites), the proportion of inferior v water quality was 6.7%. china's water treatment market will reach 160 billion yuan in 2017, and it is expected to reach 540 billion yuan in 2022, with a compound annual growth rate of 15%. the water treatment market has broad prospects.
black and odorous water has been harnessed into a new battlefield. according to the national information platform for urban black-odorous water regulation of the ministry of housing and construction, 2100 black-odorous water bodies were identified, of which 1120 were completed, accounting for 53.3%; 790 were under treatment, and 190 had made plans. with the introduction of "ten rules of water", the treatment of urban black and odorous water will gradually become a new battlefield of water pollution control. it is expected that by the end of 2020, the market scale of urban black and odorous water treatment in china will reach about 700 billion.
the rural domestic sewage market is vast. at present, the development of domestic sewage treatment in rural areas in china is backward, and the discharge volume is still high, accounting for more than 50% of the national water pollution discharge. however, due to the limitation of conditions, the sewage treatment rate is low, which is far below the treatment rate of 90% in urban areas. according to the 13th five-year plan for comprehensive environmental renovation in rural areas, 130,000 new villages will be built by 2020, with the sewage treatment rate reaching 60%, and the market space is expected to exceed 120 billion yuan.
2. the battle of defending the blue sky is inevitable, and the prospect of air pollution control is clear.
prevention and control of air pollution has now become one of the livelihood issues of universal concern. in july 2018, the state council issued the "three-year action plan for winning the blue sky defense war", proposing that after three years of efforts, the total amount of major atmospheric pollutants emissions should be significantly reduced, and greenhouse gas emissions should be coordinated; the concentration of pm2.5 should be further significantly reduced, the days of heavy pollution should be significantly reduced, and the environmental air quality should be significantly improved. local governments at all levels have also issued corresponding policy plans, and established a responsibility-related system. the relevant system of air pollution control is becoming more and more perfect.
from the point of view of the feasibility of treatment, desulfurization, denitrification and dust removal are the main means at present and in the future for quite a long time. in desulfurization, demister will become the focus of investment; in denitrification, because the market of denitrification industry is the largest in the treatment of air pollution, but the profit of engineering transformation of denitrification market is low, so investment opportunities will be concentrated in the field of catalysts for denitrification; in the dust removal industry, including filtration, wet and bag dedusting, with the new round of non-electric industry governance. gradually becoming the mainstream, the dust removal market prospects are very promising, dust removal technology innovation and equipment updating are expected to become the focus of the next round of development. it is expected that china's air pollution control market will reach 460 billion yuan by 2020, including 75 billion yuan for desulfurization market space, 95 billion yuan for denitrification market space and 70 billion yuan for dust removal market space.
3. soil environmental problems are prominent, and soil remediation is still in its early stage of development.
soil pollution is serious, but soil remediation started late in china, and the gap between industrial development and european, american, japanese and other countries is nearly 30 years. in recent years, china has issued a number of laws, regulations or action plans on the control of soil pollution, and the policy intensity has been increasing. in may 2016, the state council issued the action plan for the prevention and control of soil pollution ("ten articles of soil"), which is generally regarded as a landmark event in the cause of soil remediation.
the "ten articles of soil" clearly put forward that the development of soil remediation and remediation industry should be promoted, including opening up the service monitoring market, encouraging social institutions to participate in activities such as soil environmental monitoring and assessment, and improving the mature industrial chain of soil environmental investigation, analysis and testing, risk assessment, design and construction of remediation and remediation engineering. and there are clear standards and specific indicators for the control effect, requiring "net land transfer". by 2020, the safety utilization rate of contaminated cultivated land and contaminated land will reach more than 90%. if these measures can be effectively landed, it is expected that the field of soil remediation will increase by 450 billion yuan.
4. solid waste stocks are huge, and solid waste pollution disposal has great potential for development.
during the twelfth five-year plan period, china invested more in solid waste in various sub-industries of environmental protection, especially in the construction of waste incineration plants, which made waste incineration enter a super-high-speed development stage. in urban garbage, domestic garbage disposal in the first, second and third-tier cities has become saturated, and enterprises in related industries are facing some integration opportunities in the future.
in 2018, the relevant policies and activities of the state came to the ground one after another, which stimulated the market heat in various sub-sectors of the solid waste pollution disposal industry. the ministry of ecology and environmental protection solicited opinions on the amendment of the law of the people's republic of china on the prevention and control of environmental pollution by solid waste. the "cleaning up action 2018" and the "foreign waste" ban continued to advance, forcing a number of enterprises to transform and upgrade the utilization of renewable resources, and the relevant industries and enterprises to develop in a standardized and sustainable direction.
china's online environmental protection data show that the total amount of solid waste generated in china is more than 10 billion tons per year, and the stockpile of solid waste is more than 100 billion tons. with the further refinement of the relevant policies on solid waste pollution disposal and the further strengthening of law enforcement, there will be more room for future development.
5. the environmental monitoring policy is becoming stricter and the industry is developing at a high speed.
in recent years, china has issued a number of policies related to environmental monitoring, such as the "eco-environmental monitoring network construction program" and "notice on strengthening the supervision and management of eco-environmental monitoring institutions", which effectively stimulate the demand of environmental monitoring market. recently, the guiding opinions on further deepening the reform of "discharge and control clothing" in the field of eco-environment and promoting high-quality economic development issued by the ministry of eco-environment made it more clear that "to promote the socialization of services in the field of eco-environment detection, strengthen the supervision of social monitoring agencies, severely crack down on illegal and irregular acts such as fraud of eco-environment monitoring data, and ensure the authenticity and accuracy "
there are endless policies to form a huge advantage for the environmental monitoring sector. the prosperity of the environmental monitoring industry continues to improve, and the industry shows a high-speed development trend. it is expected that by 2020, the market space of environmental monitoring in china will reach 50 billion yuan.
looking forward to the future
with the continuous strengthening of government supervision and the continuous improvement of market demand, the environmental protection industry will enter the stage of rapid industry differentiation, the industry concentration will further improve, the advantages of state-owned enterprises will become more prominent, and the core technology of environmental protection enterprises will become the survival basis of future environmental protection enterprises.
the next two years will be the key year for the three major battles of environmental protection. the battle of pollution prevention and control will focus on the defense of blue sky, the protection of the yangtze river economic zone and the treatment of non-point source pollution in rural areas. the subdivision of environmental protection industries, such as black and odorous water treatment, rural domestic sewage treatment, air pollution prevention and control, soil remediation, solid waste pollution disposal and environmental monitoring, will usher in a new era of rapid development. opportunity.
source: polaris environmental protection network
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