More positive policy from China. Specific emphasis on construction of water treatment facilities, and SoE / private company JVs. Three Gorges Group anyone?
China yesterday released guidelines to encourage private sector participation in environmental protection.
The proposals are aimed at creating a fair and competitive business environment for private enterprises in activities related to energy saving and environmental protection, as part of efforts to win the battle against pollution, according to six government departments led by the National Development and Reform Commission, China's top economic planner.
The central government aims to do this by taking the following steps:
- Further opening up the construction of treatment facilities for wastewater, garbage, medical waste and solid waste as well as recycling facilities;
- Encouraging state-owned and private companies to set up joint ventures;
- Further opening up the electricity and natural gas sectors;
- Amending prohibitions that limit the entry of private companies in tenders; and
- Increasing financing support by issuing green bonds.
The move is especially important at a time when state-owned companies are increasingly shifting their focus to environmental protection, Fan Yuansheng, chairman of China Association of Environmental Protection Industry, said in a policy analysis following the release of the guidelines.
China’s energy-saving and environmental protection projects have grown rapidly in the past few years, with this sector’s production value exceeding CNY 7trn in 2018 and expected to be more than CNY 8trn this year, Fan said. Private companies are pioneers in technology innovation and are an important link in ensuring ecological protection and restoration, he added.
