Analysis of the status quo and development prospects of the waste treatment market

         Some time ago, the General Office of the State Council successively issued a series of bans on solid waste and hazardous waste, and carried out a vigorous clean-up and rectification of the management of solid waste and hazardous waste at home and abroad.
On July 18, the General Office of the State Council issued the “Implementation Plan for Prohibiting the Entry of Foreign Garbage to Promote the Reform of the Solid Waste Import Management System”, requiring a complete prohibition of the entry of foreign garbage, improving the management system of imported solid waste, strengthening the management of solid waste recycling, and vigorously developing a circular economy ; On July 28, the “Statutory Pollution Permit Classification Management Directory (2017 Edition)” issued by the Ministry of Environmental Protection was officially implemented; on August 2, the six ministries including the Ministry of Environmental Protection, the Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Commerce, and the State Administration for Industry and Commerce decided Carry out nationwide clean-up and rectification of recycling industries such as e-waste, waste tires, waste plastics, waste clothes, and waste home appliances.
　　Industry insiders said that after the introduction of the new environmental protection law in 2013, the hazardous waste industry has moved to the forefront. With the gradual implementation of the “Thirteenth Five-Year Plan” and the promulgation of regulations and policies such as the Ten Articles, the development of the hazardous waste industry continues to heat up. Under the policy environment where hazardous waste bans are frequently issued, more and more incremental hazardous waste will enter the market in the future. By 2020, my country’s hazardous waste market is expected to form a scale of more than 200 billion yuan.

　　 Nearly 100 million tons of hazardous waste is generated every year
“The shortcoming of my country’s ecological civilization construction is environmental protection, and hazardous waste is the shortcoming of the shortcomings. At present, my country produces more than 40 million tons of industrial hazardous wastes every year. Some hazardous wastes are poorly utilized and disordered, which seriously affects the environment. With the improvement of quality, environmental risks exist for a long time.” Chen Ying, deputy director of the Integrated Business Department and Soil Environmental Management Technology Department of the Solid Waste and Chemical Management Technology Center of the Ministry of Environmental Protection, at the “2017 Solid Waste Hotspot Series Forum Agenda-The First Hazardous Waste Forum” “Said on.
It is understood that hazardous waste mainly comes from industrial hazardous waste in industrial waste, medical hazardous waste in urban waste, and other hazardous waste in domestic waste. Hazardous wastes come in both liquid and solid form, which are mainly derived from industry and possess the attributes of municipal franchise controlled by the government. The diversification of the hazardous waste industry makes it not a part of a specific industry field, but a comprehensive emerging industry that crosses industries, fields, and regions, and intersects and penetrates with other industries.
　　 The hazardous waste industry has a broad market prospect. The 2016 National Annual Report on the Prevention and Control of Environmental Pollution by Solid Waste in Large and Medium-sized Cities shows that a large amount of hazardous waste has not entered the formal treatment and disposal market. During the “13th Five-Year Plan” period, as the scope of hazardous waste expands, the market scale increases, and supervision is strengthened, more and more incremental hazardous waste will enter the market, which will also promote the development of my country’s hazardous waste treatment industry. Order and rapid development. According to the E20 Environmental Research Institute forecast, by 2020, my country’s hazardous waste market is expected to form a scale of more than 200 billion yuan.
“Throughout the history of the development of hazardous waste treatment industries in countries around the world, countries with sound environmental regulations and stricter environmental protection standards and environmental law enforcement will have a more developed hazardous waste treatment industry. China’s legislation in the field of hazardous waste does not exceed 10 years. In recent 5 years, it has become tighter. The judicial interpretations of the two highs and the promulgation of the new environmental protection law in recent years have become important catalysts for the accelerated development of the industry.” Pan Gong, head of the international development department of E20 environmental platform and senior industry analyst, pointed out that according to According to the calculation of the waste output of 100 million yuan of GDP and the proportion of hazardous waste in solid waste, the actual output of hazardous waste in China can be as high as 80 million to 100 million tons. With the further development of my country’s economy and the further systematization of hazardous waste identification, this number will increase further.
Effective hazardous waste treatment capacity is only 15%
　　 What does not match the market size of the industry is that there is a huge gap in my country’s hazardous waste treatment capacity.
According to Pan Gong, from the perspective of processing volume, as of 2015, the design processing capacity of units holding hazardous waste business licenses in all provinces (regions, cities) across the country was 52.63 million tons, and the number of licenses exceeded 2,000, but the actual business scale Only 15.36 million tons. If calculated based on the actual total output of 100 million tons of hazardous waste, my country’s effective hazardous waste treatment capacity is only about 15%. The data also shows that more than 60% of the declared hazardous wastes have not been properly disposed of.
From the perspective of the distribution of the national hazardous waste disposal capacity gap, my country’s hazardous waste disposal market is mainly concentrated in the eastern coastal areas. Due to the developed economy in this region and the large amount of hazardous waste generated, most of the hazardous waste in my country is concentrated. Companies with potential for waste disposal, but even in this area, supply and demand are not balanced. There are still 500,000 tons of hazardous waste accumulated in Jiangsu Province, and Zhejiang’s hazardous waste disposal capacity gap exceeds 500,000 tons. Due to the underdeveloped economy and transportation in the northwest region, Qinghai, Guizhou and other provinces currently have no centralized landfill facilities, and the processing capacity is seriously insufficient. The Beijing-Tianjin-Hebei region is the region where the national processing capacity gap is small and the supply and demand are basically balanced. In general, although the number of business units has increased, the problem of structural deficiencies in my country’s hazardous waste industry is still prominent.

Another data shows that 99% of my country’s current hazardous waste treatment enterprises are private enterprises, and the average treatment scale of more than 2,000 hazardous waste treatment enterprises nationwide is only 20,000 tons. Most of them are small enterprises with an annual processing capacity of less than 10,000 tons. The top 10 hazardous waste disposal industries in my country currently only account for 6.8% of the market share, and the industry is characterized by fragmentation, smallness, and weakness.
Liu Ren, chairman of Dongjiang Environmental Protection, also pointed out that there is a significant mismatch between the overall processing capacity and emissions of the hazardous waste industry, and the national layout still needs to be optimized. Currently, the number of hazardous waste business licenses nationwide is concentrated in the Yangtze River Delta and the Pearl River Delta, while Shandong, Inner Mongolia, The processing capacity of important hazardous waste discharge areas such as Henan and Hunan is insufficient. The challenges faced by the hazardous waste industry include the complex approval of new projects and the long implementation period, which cannot meet the rapidly growing demand for hazardous waste.
“In addition, industry competition has intensified. In recent years, the hazardous waste piece has attracted crossovers and capitalists to scramble for the first layout. The race is fast, the competition for talent is fierce, and it has even triggered disorderly and vicious competition. , Leading to a series of problems in the entire industry, such as low scale effects, uneven technical levels, declining profit margins, and insufficient actual processing capabilities.” Liu Ren said.
Chen Ying added that there are several major problems in my country’s hazardous waste management. First, the problem of illegal transfer and disposal of hazardous waste is prominent. In my country, there are still a large number of hazardous wastes that are outside of supervision and where the destination is unknown. 40% of suspected environmental pollution crimes involve hazardous waste, of which about 20% are illegal transfer and disposal of hazardous waste. Second, there are defects in the system design of the whole process. There are many “blind spots” and “blocking spots” in the storage and collection of hazardous waste, which restrict the healthy development of the industry. The third is the weak supervision of hazardous waste. There is a serious shortage of supervisory personnel, and there is a shortage of specialized hazardous waste management personnel at the district level, especially at the county level; the business level and working methods of the existing supervisory team cannot meet actual needs, causing a large number of small and medium-sized enterprises to be out of supervision.
Policy system level needs to be further optimized
According to Wang Yachao, general manager of Jiaxing Zeming Environmental Technology Co., Ltd., the future development of the hazardous waste industry is divided into three stages. The first stage is to strengthen the research and development of resource-based technologies, the rapid application of new technologies, and the acceleration of production capacity in the hazardous waste market. In the second stage, the regulatory system is gradually improved, the operation and management level is gradually improved, a large amount of capital is poured in, and project integration is intensified. In the third stage, the hazardous waste disposal technology is perfect, the operation and management level is generally high, the hazardous waste market is gradually saturated, and the overall profit of the project tends to be meager.
“Replacement of end-point governance with pollution prevention is an internationally recognized environmental protection policy. Hazardous waste reduction is an inevitable trend. With the strong entry of many cross-industry capital and large enterprises’ cross-regional acquisitions, the living space of small and medium-sized enterprises will be squeezed. In the fierce industry competition, profit margins will show a downward trend. To this end, we need to plan rationally, be alert to overcapacity, and accelerate the smooth transition of industry integration. Only in this way can we effectively shorten the pain period.” Pan Gong said.
Chen Ying believes that more systematic optimization of policies and institutions is needed. First, clarify the management boundary in understanding. The classification of some hazardous wastes in my country is not very clear, and there are still gray areas. In addition, many aspects of waste reduction and resource utilization have their own market rules. As long as environmental risks are controllable, the market’s role in resource allocation can be more fully utilized. The second is to highlight the management focus in strategy. Implement hierarchical management in accordance with environmental risks, and use information technology to implement refined management of hazardous waste collection, transfer, transportation, and disposal, and improve the efficiency of supervision. The third is to encourage recycling in policies, and mainly adopt a combination of positive incentives and negative restraints.
Liu Ren suggested that, guided by market demand, build a new type of industrial relationship with win-win cooperation as the core, and form complementary advantages in professional technology, management mode, capital, and markets through cooperation in project construction, technology research and development, and equity investment. Improve the fairness, effectiveness, and synergy of the industry, effectively solve the problems of low industry concentration, low resource complementarity, small processing scale, uneven technical level, etc., to create a broader space for survival and development for enterprises, and maximize Realize the reduction, harmlessness and resource utilization of hazardous waste.

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