The capitalist drama of environmental protection companies transforms into an “integrated environmental service provider”

Where is the environmental protection market?

"Regulatory out of the market" can be said to be the most characteristic of the environment.

With effective monitoring methods, the environmental protection department can be in place for supervision, and local governments and enterprises can only make full use of their horsepower to really do environmental protection. Therefore, there is a huge environmental protection market. It is precisely because of the environmental supervision during the “Eleventh Five-Year Plan” period that China built thousands of sewage treatment plants in just five years.

"The government should do less and do more." According to the "China Economic Weekly," a responsible person of an environmental protection company suggested that "the market is on this two points." The point of less government is given to the market. That fosters the market."

The reporter learned from the interview that there are two popular modes in the world: one is the non-market model of Japan and the other is the French market model.

Japan's environmental protection technology is very advanced, and environmental protection investment is also very large. However, it is basically dominated by government departments, the degree of marketization is low, and competition is not sufficient. The environmental protection industry is not developed in China, and the brand name of environmental protection companies is rarely known. .

Different from Japan, the degree of marketization of the French environmental protection industry is very high. This has led to the development of world-class environmental protection companies such as Veolia and Suez.

Some industry experts analyzed that China can neither copy the Japanese model nor copy the French model. It must adjust measures to local conditions and adapt to local circumstances. It will explore a development path for environmental protection industries with Chinese characteristics. This will also be China's development of the world's environmental protection industry. contribution.

Global market experience

In the face of China, the world's largest environmental protection market, foreign giants have already reached the front door. Taking the water market as an example, “it is already filled with smoke and all the heroes are on the scene.” Zhu Yong, chairman of the China National Water Corporation (600187.SH, hereinafter referred to as “China Water”), told China Economic Weekly. At present, foreign water companies in China have the world's top four water giants: France Veolia, Suez (through its China-France Water Investment Co., Ltd.), Thames Water in the UK, and Berlin Water in Germany; the state-owned holding water company with Shenzhen Water Group and Beijing Drainage Group is a representative; private capital is led by Sander Group and Tsinghua Tongfang.”

However, in the interview, local environmental protection companies generally showed confidence to reporters. As a local A-share listed Sander Environment (000826.SZ) and the head of Sander International (00967.HK, E6E.SG) listed in Hong Kong and Singapore, Wen Yibo is a “godfather” in the domestic environmental protection industry. "character. He analyzed "China Economic Weekly": "Since China has a huge market, many multinational giants appear to be giants, but in reality, they do not have a large number of projects, and Chinese domestic companies do have a lot of practice. The opportunity has a natural advantage. Local companies have obvious advantages in small and medium-sized projects."

Zhu Yong also feels the same: "The water service in the country has been superior to foreign counterparts in the bidding for projects in some of the domestic water industry."

Ms. Yu Xiaoyin, a director of Beijing Luchuang Environmental Protection Equipment Co., Ltd. (430004.OC, hereinafter referred to as “Lvhuang Environmental Protection”), pointed out: “Compared with our foreign counterparts, our technology is not backward, and its cost is low and its service radius is short. In some industrial fields, our technology has reached the international level."

"Compared with foreign competitors, we understand the Chinese market better and our products are closer to the reality of the Chinese market," said one person, Xiamen Sanwei Silk Environmental Protection Co., Ltd. (300056.SZ, hereinafter referred to as "three-dimensional wire").

Not only targeting the domestic market, some local companies have begun to deploy "going out."

“Guozhong Water has contacted and intentedly negotiated with a number of foreign governments or related agencies. It is hoped that 1-2 projects will be implemented in 2011,” said Zhu Yong.

Greenmei (002340.SZ), which specializes in the recycling of electronic waste, currently targets North America and Europe, and has started to set up subsidiaries in the region.

The Sander environment has gone further. In 2009, they received a large list of upgrading and reconstruction projects for a sewage treatment plant in Saudi Arabia, and the total amount is expected to reach 700 million yuan. The signing of the project is believed to have created a precedent for Chinese environmental protection companies to enter the international market.

"In the 12th Five-Year Plan period, the environment of Sande will actively explore new markets, and the average annual output value is expected to reach 1 billion yuan," Wen Yibo told China Economic Weekly.

Transitioning to an Integrated Environmental Service Provider

According to sources, the environmental protection service industry will be focused on development in the “12th Five-Year Plan”. The “12th Five-Year Development Plan for Environmental Service Industry” led by the Ministry of Environmental Protection is currently discussing the revision phase. According to the draft of the “Planning”, relevant departments are planning to launch “contract environmental services” in accordance with “Contract Energy Management”.

Some experts suggested that in the contract energy management, by providing energy-saving services, such as reducing power consumption from 1 million to 600,000 degrees, 400,000 degrees are saved, and both parties can distribute profits according to this. However, environmental services are not the same, and the environmental protection effect lacks quantitative standards. For example, how can a river be treated cleanly through environmental protection services? Environmental service providers and demand parties are likely to fail to agree.

In addition, how to define the beneficiaries of environmental protection services? For example, riverside houses originally sold for only 10,000 yuan per square meter, after the pollution was sold to 30,000 yuan per square meter, then, real estate developers should pay for it? This requires the government to formulate reasonable rules so that stakeholders can share the costs.

It can be seen that there are still many problems in the implementation of contractual environmental services. According to media reports, the "12th Five-Year Development Plan for Environmental Service Industry" will be piloted in some areas and in some areas.

However, the future of the environmental protection industry is in service, which is almost universally recognized by all interviewed environmental protection companies.

Many environmental protection companies have experienced a transition from a single business to an integrated service in the development process. The business form of Guozhong Water is investment, construction, and operation of urban municipal water supply and drainage projects and ecological environment treatment projects. Sangde environmental protection is also a set of investment, design, engineering construction, equipment manufacturing, operations and other industries in one.

Xiao Xiaoyin also told reporters: “Lukang Environmental Protection has to change from a good 'store' to a good 'hospital'. We will provide integrated and complete solutions for the regional environment, including consulting, environmental assessment, design, manufacturing, etc.”

Fu Tao told reporters: “Environmental service industry is not only the trend of the times, but also will lead the industry to great changes. Both government departments and environmental protection companies will achieve a transformation. The government will change from a simple regulator to a buyer of environmental protection services and a quality control of environmental protection services. And environmental protection companies will turn from engineering construction or equipment providers to integrated environmental service providers."

The industry believes that the proportion of environmental service industry is a sign of the development level of a national environmental protection industry. In China, the environmental services industry accounts for only about 15% of the total environmental protection industry, while the United States has exceeded 50%.

Some experts predict that an integrated environmental service provider is undoubtedly the future role of the development of environmental protection companies. The world-class environmental protection companies that will be born in China will certainly be integrated environmental service providers.

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