Reshaping the Future of Environmental Protection Towards Four Plates Leading "Environmental Need"

In just over ten years, the environmental protection industry has jumped from "edge" to "pillar".

In recent years, environmental protection policies have been frequently circulated. There are heated discussions in the industry. With the further implementation of relevant supporting policies in the later stage, the environmental protection industry is expected to set off a new round of investment boom. In fact, from 2010, the State Council listed the energy conservation and environmental protection industry at the top of the seven strategic emerging industries; in the government work report during the two sessions in 2016, it was clearly proposed to vigorously develop the energy conservation and environmental protection industry and cultivate the energy conservation and environmental protection industry into a major pillar industry of China's development.

This is not, China Environmental Protection Online Xiaobian will take you to see, the environmental protection circle of the most favored by capital segments.

Sponge City is expected

Over 100 million investment per square kilometer

In sharp contrast to the "non-wet shoes" of sponge cities, many cities are a rainstorm and a "sea". How to end the "sea-watching mode" as soon as possible? In the last month, more than 10 provinces such as Jiangxi and Shandong held meetings or issued urgent documents to promote the construction of sponge cities. According to incomplete statistics, up to now, more than 20 provinces (autonomous regions and municipalities) have issued plans to promote the construction of sponge cities and launched thousands of projects.

At the central level, sponge city construction is also steadily advancing. In December 2013, the Central Urbanization Work Conference proposed to build a sponge city with natural accumulation, natural infiltration and natural purification. In April 2015, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, and the Ministry of Water Resources announced the first batch of 16 sponge city construction pilots; in April this year, the three ministries announced the second batch of 14 sponge city construction pilots.

It is understood that the first batch of pilot projects are mainly 2. third-tier cities; the second batch of pilot projects have joined first-tier cities such as Beijing, Shanghai and Shenzhen. For these pilot cities, the central government will provide special fund subsidies for three consecutive years, 0.6 billion yuan per year for municipalities directly under the Central Government, 0.5 billion yuan per year for provincial capitals, and 0.4 billion yuan per year for other cities. In fact, in addition to the 30 pilot cities identified by the central government, various provinces have also designated provincial pilot cities, and the competition for pilot applications is quite fierce.

According to the average investment of about 2.5 billion yuan per city, the construction of sponge city will drive more than 1.5 trillion of the investment.

The list of hazardous wastes has been increased and changed.

Release the market space

"The Ministry of Environmental Protection, the National Development and Reform Commission, and the Ministry of Public Security recently issued the" National Hazardous Waste List "(2016 edition), which will come into force on August 1, 2016. It is understood that in 1998, my country promulgated and implemented the "National Hazardous Waste List" (hereinafter referred to as the "List") for the first time, and revised it in 2008. This year's version is the third edition. This revision adjusts hazardous wastes to 479 species in 46 major categories, of which 362 species are from the original list and 117 species are added.

In addition, the new version of the list stipulates that when 16 kinds of hazardous wastes meet the corresponding conditions, they can be exempted in some links and are not managed in accordance with hazardous waste. For example, fly ash from waste incineration is not managed as hazardous waste in the "cement kiln co-disposal process. Industry experts said that the revision of the "list" has attracted great attention from the comprehensive utilization and harmless disposal industry of hazardous waste, and the huge industry market space is waiting to be opened up.

At present, the actual annual output of hazardous waste in China exceeds 70 million tons, while the actual disposal of hazardous waste accounts for only about 38% of the amount of hazardous waste produced in that year, and a large amount of hazardous waste has been accumulated in history. However, the current state-approved disposal scale is not fast enough to cope with new and historical accumulated hazardous waste, and it will take about 3 years from project start-up to final operation. Therefore, professionals predict that in the short term, the shortage of hazardous waste capacity is difficult to change.

According to the estimation of securities institutions, China's critical waste annual treatment gap in the hundreds of billions of levels. A qualification review system is implemented for hazardous waste treatment. The hazardous waste treatment rate approved through formal channels is less than 20%, and there are many small and medium-sized enterprises, few regulations, and serious market disorderly competition. In the future, the market will bridge the opportunities for formal, large-scale and large-scale hazardous waste disposal enterprises under the strict qualification.

PPP enthusiasm rekindled

Become a new round of major investment

"Recently, local enthusiasm for PPP has increased significantly." Some people in the industry said that in 2016, China's financing was relatively loose, and local governments issued a large number of bonds. However, with the recent slight tightening of monetary policy, it is more difficult to issue bonds, and PPP has become the main mode of local investment. Xu Lin, director of the Planning Department of the National Development and Reform Commission, said that due to the relatively loose lending in the first half of the year, the interest rate was as low as 1-2 percentage points. For the government, under the low financing, it will not choose to use the PPP model to obtain relatively high-cost private capital.

Xu Lin believes that reducing the financing costs of private enterprises is the key. At the same time, the system construction of PPP should be strengthened. "On the whole, China's current long-term financing tools and varieties are still insufficient, but a large number of PPP projects may have payback periods of more than ten or even twenty or thirty years, and we now have very few financing varieties with maturities of more than twenty years. The lack of financing varieties makes the matching of financing and payback periods of many projects inconsistent, which will bring cash flow and liquidity problems to the project operation itself."

"Just like the 180 billion yuan PPP financing support fund that the state will promote, it will greatly reduce the financing costs of private enterprises." Xu Lin said that the fund of 180 billion yuan is mainly invested in PPP project capital. When investing in project capital, it can at least drive the same amount of social capital to invest in capital, which means that 360 billion yuan will be invested in PPP project capital. Assuming that the proportion of PPP project capital is 20%, this 360 billion yuan will be able to leverage 5 times the investment, that is, it can drive about 1.8 trillion yuan of investment.

And China's PPP reserves are as high as 9.3 trillion yuan. A few days ago, the Ministry of Finance organized the third batch of PPP demonstration project declaration work. According to the notice, as of the end of April, according to the statistics of the national PPP comprehensive information platform project database of the Ministry of Finance, the number of PPP projects nationwide has reached 8042, with a total investment of 9.3 trillion billion yuan.

The way of decline or expansion

The tide of the Democratic Progressive State ebbs and surges.

In recent years, with the entry and integration of the capital market, the attitude of private enterprises in the field of environmental protection towards capital, especially state-owned capital, seems to be gradually changing. Such incidents have occurred several times in large enterprises in the industry:

In April 2015, Sander Group reached a strategic cooperation with Tsinghua Holdings, Qidi Kefu, Qingkong Assets, and Jinxin Huachuang. Qidi Kefu became Sander's largest shareholder. The transaction volume was about 7 billion yuan, setting a new industry record. It is the largest transaction in China's environmental market since the reform and opening up. After the transaction, Wen Yibo, who created the Sander Group, retired as a second shareholder. In August 2015, Blue Water, which has always emphasized "light assets", also welcomed CDB's subscription. China Development Bank Innovation Capital Co., Ltd., a subsidiary of China Development Bank, owns 10.48 per cent of Bishuiyuan with 5.434 billion yuan, becoming the third largest shareholder of Bishuiyuan.

For the phenomenon of state-owned shares in private enterprises, the industry can be broadly divided into two schools of thought. Some people think that it is the performance of the decline of private enterprises, and it is evidence that "private enterprises can't compete with state-owned enterprises"; others think that this is a good game for subdivided fields or technology-based enterprises to connect capital and market resources, and it is for enterprises to open up the industrial chain. The only way to further develop and grow.

There is no doubt that state-owned enterprises and central enterprises have incomparable advantages over private enterprises in the environmental protection market with public welfare attributes. Driven by the PPP policy, the dependence of enterprise development on capital is self-evident. Although some national and local policies actively guide private capital to invest in public services and other key areas. However, the results of the recent special supervision and inspection of the State Council show that at present, in some PPP projects, some private capital wants to enter but cannot enter, and some lack an effective mechanism to protect the investment income of private enterprises, resulting in private capital holding money to wait and see; some local PPP projects are tailor-made for state-owned enterprises, and even refuse the participation of private enterprises. The differentiated treatment of private enterprises, the country's phased policies, and the capital obstacles encountered in the development of enterprises have all promoted the occurrence of state-owned equity.

[Conclusion] The spring breeze of the 13th Five-Year Plan has arrived. Is the environmental protection industry ready?

But it is undeniable that in addition to the successive waves of market capital, what should return to rationality also includes the country's environmental governance goals. The Fifth Plenary Session of the 18th Central Committee held in October last year put forward the five development concepts of "innovation, coordination, green, openness, and sharing"; at the 2016 National Environmental Protection Work Conference, Minister of Environmental Protection Chen Jining proposed to improve environmental management. The level of systematization, scientization, rule of law, refinement and informatization.

Because, the era of the initial recklessness in the field of environmental protection will be gone forever, it is only a matter of time before enterprises relying on barrier protection exit, and the industry ecology will undergo more drastic changes. It is very important for the healthy and sustainable development of an enterprise to have the core competitiveness based on technology and product quality.

(References: People's Daily Online, China Environmental News, Economic Information Daily, China Water Network) (Source: China Environmental Protection Online)

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