Some opinions hold that the current Chinese economy has entered a new normal, and the profits of industrial enterprises have declined, which is not conducive to the development of industrial pollution control market. Is that really the case? According to the industry analysis, overall, the development of industrial pollution control market is still relatively slow, industry imbalance. Generally speaking, it will take a long time for the industrial pollution control market to develop and the relevant laws and regulations will be promulgated. But in terms of prospects, the industrial environmental protection market can be said to be the next outlet.

Less than 30% of the park's environmental protection standards? Industrial environmental protection market is the next outlet

"With the improvement of China's environmental standards and stricter environmental supervision, I believe that there is a huge market for industrial wastewater treatment." On June 27, Sun Minghua, Executive Vice President of Suez Group Asia, told the China Times.

She said, "In recent years, we have seen more and more parks and enterprises have been perfunctory about sewage treatment in the past, to sincerely want to sewage treatment, discharge standards, because they realize that this will be related to the survival of parks and enterprises."

However, Luo Jianhua, vice president and chief policy expert of the Environmental Chamber of Commerce of the All-China Federation of Industry and Commerce, said that on the whole, the development of the industrial pollution control market is still relatively slow, the industry is unbalanced, and a large number of small and medium-sized enterprises are not well managed. Industrial parks, in particular, have become agglomeration areas of pollution, with only 20-30% compliance rates.

Industrial market "very confident"

On March 8 this year, Suez Group announced that it had signed an agreement with Quebec Savings and Investment Group to set up a joint venture company at a ratio of 70 to 30 and to purchase GE water treatment at a price of 3.2 billion euros.

"At present, the acquisition is proceeding steadily as planned, and the transaction is expected to be completed by mid-2017 with the approval of EU and US regulators." Sun Minghua said.

She said that the development of industrial water treatment business is one of the four strategic priorities of Suez Group. The acquisition of GE water treatment will help expand the market outside Europe and make Suez Environmental Group a leader in the field of industrial water treatment.

An industry insider who did not want to be named also said that he was "very confident" about the market of industrial pollution control, because the problem of industrial pollution is becoming more and more serious. If this problem is not solved, industrial enterprises will not only have new projects, but also may be "vetoed by one vote" for existing projects. "To some extent, environmental protection is no longer a general sideline, but is very important and critical, environmental protection does not meet the standards will face the danger of factory closure."

Some opinions hold that the current Chinese economy has entered a new normal, and the profits of industrial enterprises have declined, which is not conducive to the development of industrial pollution control market. But in Sun Minghua's view, in the global context, China or one of the areas with the best economic development, regardless of political stability or economic development situation, are relatively good. Take Chongqing as an example, the annual GDP is still increasing at a rate of 10%. If we do not invest in China, the rest of the world will have no investment.

"China is in the post-industrialization stage. At present, the degree of industrialization is only about 70%. There will still be many new opportunities for development if we continue in the future, coupled with industrial adjustment and industrial transfer." According to the above-mentioned insiders, "According to the experience of environmental protection governance in the West, the industrial market also has great prospects."

Sun Minghua predicts that the future industrial wastewater treatment market will have a "weight-to-weight" transformation, from focusing on the scale of wastewater treatment to focusing on the effect of wastewater treatment, which will help more professional, technological strength, more standardized management of environmental enterprises stand out. "So Suez is very optimistic about this market, which will be a key area for us to achieve greater growth in the future."

Still short board

According to Huang Xiaojun, executive president of the Environmental Chamber of Commerce of the National Federation of Industry and Commerce, it will take a long time for the market of industrial pollution control to develop and relevant laws and regulations to be promulgated. "The reason why PPP is so popular now is that a lot of policies have been introduced in the past two years, and they have been brought up all of a sudden."

Luo Jianhua also said that compared with the municipal environmental protection market driven by PPP, the progress of industrial pollution control market is still relatively slow; the industry is not balanced, the power industry is moving faster, ceramics, building materials, cement, steel and other industries are more problematic; large enterprises are doing better, but a large number of small and medium-sized enterprises are still "not watching".

"If the environment is not improved, the key is whether the industry has grasped it or not. This piece of work is not enough now. Industrial pollution is still a cancer, a weak rib and a short board of the environment." He said.

Huang Xiaojun also said that compared with the general municipal, residential, agricultural and other pollution, industrial pollution has a greater negative impact on the whole environment, and the pollutants produced are more difficult to deal with, so it is also more important. He appealed that the market mechanism and game rules should be well designed at the beginning of the industrial pollution control market. First, the market order and second, the price system should not repeat the "rush up" of the municipal environmental protection market.

"Industrial pollution control requires meticulous work, higher process requirements, and greater risks brought by poor operation. Therefore, environmental protection enterprises should be lightly equipped, focusing on technology introduction, fine management, good service, etc., instead of opening their eyes all day, thinking about how much money they owe the capital market." The above-mentioned industry insiders said, "So the first mode of industrial market to do a good job, in addition to emission standards, on-line monitoring, emission permit system, the key is business model, the big framework to clear, I think third-party governance is the best mode."

As early as January 2015, the State Council issued the "Opinions on Promoting Third Party Governance of Environmental Pollution" to promote the third party governance model of environmental pollution in industry and other fields, hoping to solve the problem of over-standard emission of pollutants from industrial enterprises. However, over the past two years, the model has been advancing slowly, and there are not many projects on the ground.

In Sun Minghua's view, there are several reasons for the slow progress of third-party governance. First, the objectives of third-party governance are not clear. Many new problems, such as sludge disposal, soil remediation, River treatment, are not clear standards. It is difficult for enterprises to judge costs and risks, and the buyers of services do not have the criteria to choose. Second, the payment mechanism is not perfect, or there is no adequate financial guarantee, which leads to enterprises. Dare not rush to participate; Third, the lack of integrity of cooperative units, so that enterprises can only stand back.

"PPP-related laws and regulations are relatively sound, so the speed of promotion is faster, and third-party governance is still"crossing the river by touching the stones", the framework of rights and responsibilities of all parties is not clear." In addition, the capital-driven business model generally advances faster, while the third-party governance is not mainly to solve the problem of money, but to solve the problems of technology and management, so the speed of promotion is relatively slow.