Overview:

This report presents a full view of China’s environmental protection industry, provides analysis and forecast on market shares, competition, key players, import & export, upstream & downstream industries, barriers, industrial environment and policy trends, investment, R&D; introduces Chinese inspection & standards system; provides full forecast to 2010 with key statistical data. This report covers all the key subdivision markets in China, includes Dedusting, Thermal Power Desulphurization, Waste Gas Purification, Solid Waste Treatment, Sewage Treatment, Noise Treatment, Environment Monitoring and Environmental Service.

Executive Summary

On the basis of initial prediction by the State Environmental Protection Administration, by 2010, annual growth rate of China’s environmental protection industry will reach about 15%. Also by 2010, the total output of the environmental protection industry of China will reach RMB 880 billion Yuan (excluding the clean products), equal to about $ 120 billion dollars, accounting for 3.4% of GDP of that year, wherein, the output of the environmental protection equipments will be RMB 120 billion Yuan, accounting for 13.6%, the output of the environmental service will be RMB 100 billion Yuan, accounting for 11.4%, and the output of the resource comprehensive utilization will be RMB 660 billion Yuan, accounting for 75%.
After decades of development, the environmental protection industry in China has formed an industrial system with complete departments, wide range and certain scale, thus becoming the essential part of the national economic structure of China. According to the estimation by the State Environmental Protection Administration, in 2006, the total annual income of the large scale units of the relevant environmental protection industry was about RMB 600 billion Yuan, up by 31.2% over 2004, accounting for 2.9% of the Gross Domestic Production in 2006 and being 2.3 times of the total investment amount of the environmental pollution control by the state of the same period. The profit realized was about RMB 52 billion Yuan and the total taxable amount was RMB 45 billion Yuan. In 2006, the relevant environmental protection industry had 35 thousand engaging units with 3 million employees accounting for 0.39% of employees over the whole country.
The environmental protection equipments (products), as the core of the environmental protection industry, had the sales income in 2006 of about RMB 63 billion Yuan, up by 15% over the same time of the previous year, accounting for 10.5% of the total output of environmental protection. In 2007, its sales income in the first three quarters was RMB 51.218 billion Yuan, up by 36.85% over the same time of the previous year. The market demand of the environmental protection equipments mainly concentrates in aspects such as urban sewage treatment, domestic waste treatment, industrial dedusting, desulphurization of thermal power plants and dangerous waste treatment.
Certain achievements have been obtained in China’s environmental protection technologies and equipments, and technologies of electrostatic precipitation and bag filter have been in the advanced level in the world. The sewage treatment can basically finish the production of technical equipments and supplementary equipments independently and has relevant technical equipments entering into the international market. And the microporous noise elimination technology in the noise and vibration control technology has achieved an international level.
Due to the late start of the environmental protection industry which is currently at the developing stage, China’s environmental protection market is about 20-year-lagging behind compared with the development situation of the environmental protection markets in Europe and America. Although the kinds of environmental protection products of China are relatively complete, the technology level of the key equipments and the core products is low, for example, in the aspect of sewage treatment technology, foreign countries have a complete set of treatment technology including disinfection, nitrogen removal and mud treatment. As the single technology of sewage treatment has a rapid development in China, the level of the integration technology and the level of the product nationalization are relatively low. In addition, the scale of China’s environmental service industry is small and the ability to provide technological support for various fields is weak, which restricts the further development of the environmental protection industry in China to some extent.
In order to narrow the gap between China and developed countries, China will, in the future years, focus on the development of water pollution prevention technology and equipment, atmosphere pollution prevention technology and equipment, solid waste treatment technology and equipment, the environmental monitoring technology and equipment, the polluted field restoration technology, physical pollution control, special reagents and material, comprehensive utilization of resource, construction operation and consultation service of the pollution treatment facilities, the environmental service trade, etc.

CHAPTER 1 CONCEPT AND CLASSIFICATION OF THE ENVIRONMENTAL PROTECTION INDUSTRY 1
1.1 CONCEPT AND CLASSIFICATION OF THE INTERNATIONAL ENVIRONMENTAL PROTECTION INDUSTRY 1
1.2 CONCEPT AND CLASSIFICATION OF ENVIRONMENTAL PROTECTION INDUSTRY IN CHINA 3

CHAPTER 2 DEVELOPMENT CONDITION OF THE ENVIRONMENTAL PROTECTION INDUSTRY IN CHINA 6
2.1 HISTORY OF THE DEVELOPMENT OF THE ENVIRONMENTAL PROTECTION INDUSTRY 6
2.2 ANALYSIS ON THE SCALE OF THE ENVIRONMENTAL PROTECTION INDUSTRY MARKET 9

CHAPTER 3 ANALYSIS AND PREDICTION OF THE HOTSPOT SUBDIVISION MARKET OF ENVIRONMENTAL PROTECTION INDUSTRY IN CHINA 12
3.1 THE DEDUSTING MARKET 12
3.1.1 THE ELECTROSTATIC PRECIPITATION MARKET 12
I. THE PRESENT SITUATION OF THE ELECTROSTATIC PRECIPITATION MARKET 12
II. THE DEVELOPMENT TENDENCY OF ELECTROSTATIC PRECIPITATION MARKET 16
III. SUMMARY 17
3.1.2 BAG-TYPE DEDUSTING MARKET 18
I. THE PRESENT SITUATION OF BAG-TYPE DEDUSTING MARKET 18
II. THE DEVELOPMENT TENDENCY OF BAG-TYPE DEDUSTING MARKET 20
III. SUMMARY 22
3.2 THE THERMAL POWER DESULPHURIZATION MARKET 22
3.2.1 THE CURRENT CONDITION OF THE THERMAL POWER DESULPHURIZATION MARKET 22
3.2.2 THE DEVELOPMENT TREND OF THERMAL POWER DESULPHURIZATION MARKET 27
3.2.3 SUMMARY 29
3.3 THE WASTE GAS PURIFICATION MARKET 30
3.3.1 THE MARKET OF ORGANIC WASTE GAS PURIFICATION OF INDUSTRIAL STATIONARY SOURCE 30
I. THE CURRENT CONDITION OF THE MARKET OF ORGANIC WASTE GAS PURIFICATION OF INDUSTRIAL STATIONARY SOURCE 30
II. THE DEVELOPMENT TREND OF THE MARKET OF ORGANIC WASTE GAS PURIFICATION OF INDUSTRIAL STATIONARY SOURCE 33
III. SUMMARY 34
3.3.2 THE MARKET OF OIL FUME POLLUTION TREATMENT IN CATERING TRADE 35
I. THE CURRENT CONDITION OF THE OIL FUME POLLUTION TREATMENT MARKET IN CATERING TRADE 35
II. THE DEVELOPMENT TENDENCY OF THE MARKET OF OIL FUME POLLUTION TREATMENT IN CATERING TRADE 36
III. SUMMARY 38
3.3.3 THE INDOOR AIR POLLUTION CONTROL MARKET 38
I. THE CURRENT CONDICTION OF THE INDOOR AIR POLLUTION CONTROL MARKET 38
II. THE DEVELOPMENT TREND OF THE INDOOR AIR POLLUTION CONTROL MARKET 40
III. SUMMARY 43
3.3.4 THE MOTOR VEHICLE POLLUTION TREATMENT MARKET 43
I. THE CURRENT CONDITION OF THE MOTOR VEHICLE POLLUTION TREATMENT MARKET 43
II. THE DEVELOPMENT TENDENCY OF THE MOTOR VEHICLE POLLUTION TREATMENT MARKET 46
III. SUMMARY 47
3.4 THE SOLID WASTE TREATMENT MARKET 48
3.4.1 THE URBAN WASTE POLLUTION TREATMENT MARKET 48
I. THE CURRENT SITUATION OF THE URBAN WASTE TREATMENT MARKET 48
II. THE DEVELOPMENT TREND OF THE URBAN DOMESTIC WASTE POLLUTION TREATMENT MARKET 51
III. SUMMARY 53
3.4.2 THE INDUSTRIAL SOLID WASTE POLLUTION TREATMENT MARKET 53
I. THE CURRENT SITUATION OF INDUSTRIAL SOLID WASTE POLLUTION TREATMENT MARKET 53
II. DEVELOPMENT TREND OF INDUSTRIAL SOLID WASTE POLLUTION TREATMENT MARKET 56
III. SUMMARY 58
3.5 SEWAGE TREATMENT MARKET 59
3.5.1 CURRENT SITUATION OF THE SEWAGE TREATMENT MARKET 59
3.5.2 DEVELOPING TREND OF THE SEWAGE TREATMENT MARKET 61
3.5.3 SUMMARY 63
3.6 NOISE TREATMENT MARKET 64
3.6.1 CURRENT SITUATION OF NOISE TREATMENT MARKET 64
3.6.2 DEVELOPMETN TREND OF NOISE TREATMENT MARKET 66
3.6.3 SUMMARY 66
3.7 ENVIRONMENT MONITORING MARKET 67
3.7.1 THE CURRENT SITUATION OF ENVIRONMENTAL MONITORING MARKET 67
3.7.2 DEVELOPMENT TREND OF ENVIRONMENTAL MONITORING MARKET 68
3.7.3 SUMMARY 70
3.8 ENVIRONMENTAL SERVICE MARKET 70
3.8.1 CURRENT SITUATION OF THE ENVIRONMENTAL SERVICE MARKET 72
3.8.2 DEVELOPMENT TENDENCY OF THE ENVIRONMENTAL SERVICE MARKET 75
3.8.3 SUMMARY 76

CHAPTER 4 INTRODUCTON TO RELEVANT LAWS AND REGULATIONS AS WELL AS POLICIES OF CHINA’S ENVIRONMENTAL PROTECTION INDUSTRY 77
4.1 INTRODUCTON TO RELEVANT POLICIES 77
4.2 INTRODUCTON TO RELEVANT LAWS 78
4.3 STANDARD OF ENVIRONMENTAL PROTECTION 79
4.4 INTERNATIONAL CONVENTION 79

CHAPTER 5 FORECASTING OF THE DEVELOPMENT TREND OF CHINA'S ENVIRONMENTAL PROTECTION INDUSTRY 82
5.1 INVESTMENT SCALE 82
5.2 INTRODUCTION TO KEY DEVELOPMENT FIELDS 83
5.3 KEY INPUT FIELDS 85

CHAPTER 6 INTRODUCTION TO MIAN SUPERVISION INSTITUTIONS OF CHINA ENVIRONMENTAL PROTECTION INDUSTRY 88
6.1 MINISTRY OF ENVIRONMENTAL PROTECTION OF CHINA 88
6.2 CHINA ASSOCIATION OF ENVIRONMENTAL PROTECTION INDUSTRY 89
6.3 ALL-CHINA ENVIRONMENT FEDERATION 89
REFERENCE 91
 
TABLE CONTENT
TABLE 1 CLASSIFICATION AND CONTENT OF THE INTERNATIONAL ENVIRONMENTAL PROTECTION INDUSTRY 2
TABLE 2 CLASSIFICATION AND CONTENT OF THE ENVIRONMENTAL PROTECTION INDUSTRY 3
TABLE 3 NEW CLASSIFICATION AND CONTENT OF THE ENVIRONMENTAL PROTECTION INDUSTRY IN CHINA 5
TABLE 4 PRODUCTION AND OPERATION CONDITION OF THE MAIN ENTERPRISES IN THE ELECTROSTATIC PRECIPITATION INDUSTRY IN 2005 (UNIT: 10 THOUSAND YUAN) 13
TABLE 5 CHANGE TENDENCY OF THE TOTAL OUTPUT VALUE OF THE BAG-TYPE DEDUSTING INDUSTRY FROM 2003 TO 2007 (UNIT: 100 MILLION YUAN) 19
TABLE 6 EMISSION AMOUNT AND GROWTH RATE OF SULFUR DIOXIDE FROM 2002 TO 2006 (UNIT: TEN THOUSAND TONS) 23
TABLE 7 DESULPHURIZATION PROJECT CAPACITY OF THE TOP TEN DOMESTIC DESULPHURIZATION COMPANIES WHICH HAVE SIGNED CONTRACT UNTIL THE END OF 2007 25
TABLE 8 MARKET SCALE AND INCREASE RATE OF CHINA’S INDOOR ENVIRONMENT CONTROL PRODUCTS IN THE PAST YEARS FROM 2003 TO 2008 39
TABLE 9 RELATED INDEX OF THE INDUSTRIAL SOLID WASTE FROM 2002 TO 2006 54
TABLE 10 THE CLASSIFICATION OF ENVIRONMENTAL SERVICE INDUSTRY IN CHINA (2004) 71
TABLE 11 MAIN ENVIRONMENTAL PROTECTION INDICATORS DURING 2006-2010 82
 
FIGURE CONTENT
FIGURE 1 PROPORTION OF VARIOUS ENVIRONMENTAL PROTECTION (EQUIPMENTS) PRODUCTS 10
FIGURE 2 CHANGE TENDENCY OF THE TOTAL OUTPUT VALUE OF THE BAG-TYPE DEDUSTING INDUSTRY FROM 2003 TO 2007. (UNIT：100 MILLION YUAN) 19
FIGURE 3 INCREASE TREND OF TOTAL EMISSION AMOUNT OF SULFUR DIOXIDE FROM 2002 TO 2006 (UNIT: TEN THOUSAND TONS) 23
FIGURE 4 COMPARISON BETWEEN CONTACT CAPACITY AND SHIPPED CAPACITY OF NATIONAL REGISTERED DESULPHURIZATION COMPANIES FROM 2006 TO 2007 (UNIT: 0.1 BILLION KILOWATTS) 25
FIGURE 5 CLASSIFICATION OF VOCS POLLUTION CONTROL TECHNOLOGY 32
FIGURE 6 ANNUAL CHANGE TRENDS OF CHINA'S CATERING TRADE RETAIL SALES FROM 2003 TO 2007 37
FIGURE 7 CHANGE TREND OF MARKET SCALE OF THE CHINA INDOOR ENVIRONMENT CONTROL PRODUCTS IN THE PAST YEARS FROM 2003 TO 2008 (THE VALUE OF 2007 AND 2008 IS PREDICTED VALUE) 39
FIGURE 8 CHANGE SITUATION OF THE DEVELOPMENT AND INVESTMENT OF REAL ESTATE IN 2003-2007 41
FIGURE 9 CHANGE TREND OF THE GROSS PRODUCT OF THE NATIONWIDE FURNITURE INDUSTRY IN THE PAST YEARS FROM 2003-2007 41
FIGURE 10 CHANGES TREND OF THE GROSS PRODUCT OF THE NATIONWIDE BUILDING DECORATION PROJECT IN THE PAST YEARS FROM 2003-2007 42
FIGURE 11 CHANGE TREND OF THE NATIONWIDE INVENTORY OF CAR IN THE PAST YEARS FROM 2003 TO 2007 46
FIGURE 12 PROPORTION OF ALL KINDS OF GARBAGE TREATMENTS CALCULATED BY THE GARBAGE TREATMENT QUANTITY IN 2004. 49
FIGURE 13 CHANGE TREND OF THE RELATED INDEX OF THE INDUSTRIAL SOLID WASTE FROM 2002 TO 2006 54
FIGURE 14 CHANGE TREND OF THE TOTAL OUTPUT OF CHINA’S SEWAGE TREATMENT INDUSTRY FROM 1993 TO 2004 (UNIT: 0.1 BILLION YUAN) 60
FIGURE 15 THE STRUCTURE PROPORTION OF EACH FIELD IN THE ENVIRONMENTAL PROTECTION SERVICE INDUSTRY IN 2004(DIVIDED ACCORDING TO THE SALES INCOME) 74