Garbage dealing industry to see huge market chances
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A guideline on dealing out with household garbage in urban areas has been submitted by 15 departments, including the Ministry of Environmental Protection, to the State Council for approval and is expected to be released at the beginning of 2011. The guideline would bring large business opportunities to the industry, according to a Securities Daily report Thursday.
"During the 12th Five Year (2011-2015) period, the charging system of pollution discharge will be completed, the marketization of the garbage removal industry will be fastened, and the enterprises are set to replace the government to be the dominators of investments and financing in the industry. The industry cannot maintain a sustainable development via the subsidies from the government," according to an industry analyst that declined to be named.
According to another analyst, China's incomplete charging system of pollution discharge now hinders the development of solid waste dealing industry. The person explained that in the country, most solid waste dealing equipment are now operated by organizations under the government, and they impose charges for dealing with waste from residents and enterprises, while they (charges) cannot cover the operation costs of equipment, leaving many cities unable to bear the burden.
Urban areas in the country generate about 300 million tons of household garbage each year. And calculating at 100 yuan ($15.14) the amount needed to deal with one ton of garbage, a 30 billion yuan ($4.54 billion) market opportunity surges; and if added with technology investments and other investments, it (market) can reach more than 100 billion yuan ($15.14 billion), according to the report.
Most listed companies show optimistic for the release of the guideline, and believe that as the details come out, the industry will see a better development path.
As a key constituent in the 12th Five Year Plan, the energy saving and environmental protection industries will receive more support in technology, products, services, industry policies, tax policies and investments.
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