Environmental Global Market
Insights and Opportunities
Overview: China not only has enormous needs for cleaner energy, air and water, but is also able to afford the massive investment and imports to meet the need. In 2007, China overtook the U.S. as the world’s biggest carbon dioxide (CO2) emitter. The World Bank estimates the total cost of air and water pollution in China at roughly $50.2 billion, or about 2.7% of GDP. Acid rain costs an estimated $4.2 billion in crop damage and $138.7 million in material damage annually. About 54% of surface water resources in China have been deemed unsafe for human consumption. With its still growing economy and large dollar surpluses, China is one of the very few countries able and willing to spend heavily on sustainable energy and pollution control.
China's fast economic growth, projected at 6.5% in 2009, has already made important contribution to the world economy, and it will continue playing that vital role in world's economic recovery. The economic stimulus plan that China unveiled in November 2008 calls for 2008-2010 investment equal to 13% of its GDP, undeniably a huge contribution to the world growth. China's central bank reported that foreign exchange reserves, already the world's largest, rose 16% since April 2008 to reach $1.9537 trillion in March 2009.
The Chinese Government has set ambitious state investment targets for renewable energy and environmental cleanup. In November 2008, the Government unveiled a $585 billion Economic Stimulus Plan, with $105 billion alone slated for rural area water safety projects, urban wastewater treatment, key water body pollution control and ecological environment protection. Chinese projects already underway or planned offer huge new opportunities for California’s green technologies.
China's acute environmental problems stem from a deteriorating natural resource base, dense population, heavy reliance on coal, outmoded technology, under-priced water and energy, and breakneck industrial growth. In response to this situation, the government has unleashed a burst of environmental legislation, shut down thousands of small, dirty factories, and decreed by 2010 the country will reduce its total pollution discharge by 10% from the 2005 level and reduce energy consumption by 20% per GDP unit. Government projections for 2010 and 2020 indicate that the green technology market will increase to $186 billion in 2010 and to $555 billion in 2020.
Air pollution: As of early 2008, 39.5% of Chinese cities do not meet the national standard II of air quality; 28% of cities are below the national particulate matters standard; 20.9% of cities are below the national SO2 standard; and 281 of 500 cities monitored suffered from acid rain, accounting for 56.2% of the total. Responding to this serious situation, the government required that by 2010, desulfurization devices should be installed on coal-fired boilers at power plants where medium or high sulfur coal is used. All newly built, expanded or renovated coal-fired power plants must include installation of desulfurization equipment. The market value of the desulfurization industry will reach an estimated $725 million if only 5% of all the large-sized imperative of De-NOx of Power Plants Flue Gas, U.S. De-NOx technology and equipment providers will find great market potential in China in the next 5-10 years. Experts predict the market will be booming in late “11th-five year plan (2006-2010)” and entire “12th-five year plan (2011-2015),” as regulations and laws are established gradually and systematically. Experts predict the market will be booming in late “11th-five year plan (2006-2010)” and entire “12th-five year plan (2011-2015),” as regulations and laws are established gradually and systematically.
Water pollution: China faces severe water pollution and water scarcity problems. China generated 55.6 billion tons of wastewater in 2007, including 31 billion tons of municipal wastewater and 24.6 billion tons of industrial wastewater. By 2010, total wastewater will reach 64 billion tons, due to rapid urbanization and industrialization. One third of China’s rivers, lakes, and costal areas are severely contaminated from municipal, industrial and agricultural discharges. Over 17,000 counties and towns have no wastewater treatment plants, and nearly 300 million people are currently drinking contaminated water. In 2006, 420 out of 669 cities suffered from water scarcity. The current wastewater treatment infrastructure is inadequate, and rural area wastewater treatment is virtually non-existent. In the 11th Five-Year Plan, two major targets set by the central government are constructing a water-saving society and treating water pollution. It aims to provide safe drinking water to 100 million residents, and treat 70% of sewage. In order to meet the goals, 1,000 new WWTPs representing investment of $4.4 billion will be constructed, raising total daily treatment capacity to 10,000 tons.
Solid waste: The Chinese solid waste treatment market holds tremendous opportunities for U.S. equipment and service providers. Despite China’s position as the world largest municipal solid waste (MSW) generator, China’s solid waste treatment rate remains very low. Among the 661 cities throughout the country, 334 cities do not have any MSW treatment facilities. To tackle this problem, the Chinese government unveiled aggressive plans to improve the solid waste treatment rate. According to the plans, from 2006-2010, China will invest $14.9 billion in building fixed asset MSW treatment facilities, and will seek to raise non-harmful treatment rate of MSW to no lower than 60% by 2010. On the industrial waste side, China will maintain the policy of “reducing and recycling.” As for hazardous waste treatment, the country is allocating $1.99 billion to build 31 hazardous waste treatment centers, 300 centralized disposal facilities for medical waste and 31 warehouses for radioactive waste in the next three years. Therefore, good potential market opportunities exist for American suppliers.
Best Prospects/Services: Biological de-nitrification and phosphorus removal technologies, sludge treatment; Membrane separation and manufacturing technologies and equipment; Manufacturing technology of anaerobic biological reactor;, High concentration organic wastewater treatment technology and equipment; Series-standard water and wastewater treatment equipment family with high efficiency; Water saving technologies and equipment,
Water treatment agents; Water and wastewater treatment facility operation and management service; Natural water body rehabilitation technology, and Sea water desalinization; Remote Network Monitoring System and Alarming System for Water Network; Video Monitoring System; Information Network System and Database Management System; CODCR Online Automatic Monitoring Instrument; TOC Water Quality Analyzer; UV Absorption Automatic Online Monitoring Instrument; pH Water Quality Automatic Online Analyzer; Ammonia & Nitrogen Water Quality Automatic Analyzer; Total Phosphorus Water Quality Automatic Analyzer; Ultrasound Open-Channel Meter; Electro-Magnetic Flow Meter ; Water Automatic Sample Collector; Data Collecting and Transfer Equipment; Thermometers; and Flow Meters.