Industrial hazardous wastes treatment and recycling
Industrial hazardous wastes treatment and recycling
Business Model Description
Treatment of industrial hazardous wastes is only accessible to qualified licensed companies. The business models include 1) government investment plus enterprise contract, 2) BOT (Build–operate–transfer) model, and 3) joint investment and construction by the government and enterprise. Profitability may come from sales revenue of resourceful products; hazardous waste disposal fees. (16) (20) (21)
Expected Impact
Harmless treatment and resourceful utilization of industrial hazardous waste can reduce environmental pollution and protects people's well-being. (15)
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- China: Hainan
- China: Yunnan
- China: Hunan
- China: Hebei
- China: Jiangxi
Sector Classification
Infrastructure
Development need
Significant differences in terms of quality of the infrastructure exist between urban and rural areas in china. In rural areas, power grids are costly yet of poor quality, and water quality needs to be further improved. (1) China’s circular economy development faces great challenges including lack of standardization, difficulties in recycling low-value material etc. (2)
Waste Management
Development need
Many cities and villages in China are encircled by waste. Serious problems exist in domestic waste classification and treatment facilities in urban areas, including insufficient treatment capacity, unbalanced regional distribution, and high landfill pollution risk. The carbon neutrality goals require waste management to be carried out in a low-carbon manner. (6)
Waste Management
Pipeline Opportunity
Industrial hazardous wastes treatment and recycling
Treatment of industrial hazardous wastes is only accessible to qualified licensed companies. The business models include 1) government investment plus enterprise contract, 2) BOT (Build–operate–transfer) model, and 3) joint investment and construction by the government and enterprise. Profitability may come from sales revenue of resourceful products; hazardous waste disposal fees. (16) (20) (21)
Business Case
Market Size and Environment
> USD 1 billion
In 2020, the market size of industrial hazardous waste treatment industry was about 200 billion yuan. (12)
Indicative Return
20% - 25%
The gross profit margin of Beijing GeoEnviron Engineering & Technology, Inc.'s solid waste and hazardous waste resource utilization and harmless disposal businesses in 2020 were 26.27% and 44.65%, respectively. (10) (11)
Investment Timeframe
Medium Term (5–10 years)
Industrial hazardous waste treatment: It usually takes 3-5 years, or even longer, to obtain a disposal license. The license is generally valid for 25-30 years. The process from project approval to completion would take another 2-3 years. (13)
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Technical and financial barriers, insufficient talents, unsound regulations, etc.
Impact Case
Sustainable Development Need
The heavy metals and radioactive materials contained in industrial waste may have severe negative impacts on the environment, especially on soil and water safety, if treated improperly. (9)
Gender & Marginalisation
Different industrial development in different regions results in the uneven distribution of industrial hazardous waste production capacity. There's thus a mismatch between hazardous waste production and disposal capacity in each province. (15)
Expected Development Outcome
Harmless treatment and resourceful utilization of industrial hazardous waste can reduce the environmental impact. Meanwhile, it improves the efficiency of resourceful utilization, benefiting the circular economy.
Gender & Marginalisation
Industrial hazardous waste treatment development and reasonable layout can help solve the problem of the mismatch between hazardous waste production and disposal in some regions. (15)
Primary SDGs addressed
12.4.2 (a) Hazardous waste generated per capita; and (b) proportion of hazardous waste treated, by type of treatment
Secondary SDGs addressed
Directly impacted stakeholders
People
Planet
Public sector
Indirectly impacted stakeholders
People
Planet
Corporates
Outcome Risks
Industrial hazardous waste treatment may bring negative environmental externalities for the neighboring residents if it fails to meet relevant standards. (12)
Impact Risks
The statistical system of industrial solid waste is still unsound, without data on specific types and quantities of hazardous waste. This can affect the overall hazardous waste disposal capacity. (14)
Impact Classification
What
Harmless treatment and resourceful utilization of industrial hazardous waste can reduce the environmental impact. Meanwhile, it benifits the circular economy.
Who
People's living environment and well-being can be improved. Urban sustainability can also be enhanced.
Risk
Industrial hazardous waste treatment may bring negative environmental externalities for the neighboring residents and cause more severe environmental pollution. (12)
Impact Thesis
Harmless treatment and resourceful utilization of industrial hazardous waste can reduce environmental pollution and protects people's well-being. (15)
Enabling Environment
Policy Environment
In 2021, the State Council issued a notice, which stated that by the end of 2022, hazardous waste regulatory systems and mechanisms would have been further improved; by the end of 2025, a much more strict regulatory system will have been established. (17)
In 2020, the Ministry of Ecology and Environment published a notice stated that we should orderly promote the full-process monitoring and IT-based tracing of hazardous waste generation, collection, storage, transfer, utilization, disposal, etc. (17)
In 2019, MEE issued guiding opinions in which stating that the approval procedures for inter-provincial transfer of hazardous wastes shall be optimized, the time limit for approval shall be clarified, and the electronic manifests shall be adopted. (16)
Financial Environment
In 2021, the China Securities Regulatory Commission and the NDRC jointly issued a Notice related to Real Estate Investment Trusts (REITs) in the Infrastructure Field, with disposal of solid wastes and hazardous wastes being the key industries. (19)
In 2021, 4 departments issued a catalogue, stating that the income obtained from industrial and hazardous waste treatment following the directory shall be exempted from the EIT for the first 3 years, and shall be taxed at the reduced half rate for next 3 years. (18)
Regulatory Environment
In 2021, NDRC and other departments stated that ""we should accelerate building a standard system for the comprehensive utilization of massive solid waste, and converge the standards between upstream and downstream industries. The statistical system should be strengthened."" (22)
In July 2021, MEE issued the ""Standard for pollution control on the non-hazardous industrial solid waste storage and landfill"", which specified environmental protection requirements for site selection, construction, operation, closure, land reclamation of industrial solid waste.(24)
In January 2020, the ""Technical specifications on identification for hazardous waste"" issued by MEE came into effect to strengthen the environmental management of hazardous waste and ensure that hazardous waste identification is more scientific. (23)
Marketplace Participants
Private Sector
Private sector: GEM Co., Ltd., Beijing Orient Landscape & Environment Co., Ltd., Beijing GeoEnviron Engineering & Technology, Inc., Dongjiang Environmental Co., Ltd., and Agile Environmental Protection Group
Government
1) Guangdong: Introduced relevant economic policies; increased financial support, such as preferential VAT policies. 2) Shandong: Extended PPP model; made subsidies more accessible; replaced subsidies with rewards; offered non-profit organizations financial support. (6) (7)
Public-Private Partnership
Dongjiang Environmental Co., Ltd. set up a project company for an investment in a PPP project. It also won the bid for a PPP project jointly with Xingye Leather Technology Co., Ltd. The size is 94,700 tons with a 30-year license.
Target Locations
China: Hainan
China: Yunnan
China: Hunan
China: Hebei
China: Jiangxi
References
- (1) National Development and Reform Commission, Ministry of Finance, Ministry of Housing and Urban-Rural Development, State Administration for Market Regulation, and National Energy Administration, 2020, Opinions on the High-Quality Development of Urban Water, Electricity, Gas and Heating Industry By Reviewing and Standardizing Charges, http://www.gov.cn/zhengce/content/2021-01/06/content_5577440.htm
- (2) National Development and Reform Commission, 2021, Fourteenth Five-Year Plan for the Development of Circular Economy, http://www.gov.cn/zhengce/zhengceku/2021-07/07/5623077/files/34f0a690e98643119774252f4f671720.pdf
- (3) Xinhua News Agency, The Outline for the 14th Five-Year Plan for Economic and Social Development and Long-Range Objectives through the Year 2035, http://www.gov.cn/xinwen/2021-03/13/content_5592681.htm
- (4) State Council, 2021, Action Plan for Carbon Dioxide Peaking Before 2030, http://www.gov.cn/zhengce/content/2021-10/26/content_5644984.htm
- (5) State Council, 2021, Opinions on Comprehensively Promoting Rural Revitalization and Accelerating the Modernization of Agriculture and Rural Areas, http://www.lswz.gov.cn/html/xinwen/2021-02/21/content_264527.shtml
- (6) National Development and Reform Commission, Ministry of Housing and Urban-Rural Development, 2021 14th Five-Year Plan for the Development of Urban Household Waste Classification and Treatment Facilities, https://www.ndrc.gov.cn/xwdt/tzgg/202105/P020210513624071907544.pdf
- (7) State Council, 2021, Guiding Opinions of the State Council on Accelerating the Establishment of a Sound Economic System with Green, Low-carbon and Circular Development, http://www.gov.cn/zhengce/content/2021-02/22/content_5588274.htm
- (8) https://www.gov.cn,2019, Rural Infrastructure Construction Upgrading is in Urgent Need, http://www.gov.cn/zhengce/2019-10/14/content_5439186.htm
- (9) Huaon.com, 2021, Analysis of China's hazardous waste industry in 2020, https://baijiahao.baidu.com/s?id=1707779699948807224&wfr=spider&for=pc
- (10) Dongjiang Environmental Co., Ltd., 2021, 2020 Annual Report, http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gshk0008230&stockCode=002672&announcementId=1209476240&announcementTime=2021-03-30
- (11) Beijing GeoEnviron Engineering & Technology, Inc., 2021, 2020 Annual Report, http://static.cninfo.com.cn/finalpage/2021-04-09/1209661866.PDF
- (12) Forward Intelligence, 2019, Market Foresight and Investment Strategic Planning Analysis of Hazardous Waste Treatment Industry in China, https://bg.qianzhan.com/report/detail/300/191009-541ee09d.html
- (13) Minsheng Securities Co., Ltd., 2022, Medium-term Strategy for the Environmental Protection Industry in 2022: Special Analysis on the Environmental Protection, Hazardous Waste Disposal and Waste Power Generation Industry, https://www.vzkoo.com/read/202207285eccbb642069dab7e93b226d.html
- (14) Wang Qi, 2018, Hazardous waste disposal industry faces three major risks, https://huanbao.bjx.com.cn/news/20181211/947991.shtml
- (15) Cai Jianan, 2018, Hazardous waste disposal: Insufficient capacity and regional supply-demand mismatch should be improved, https://xueshu.baidu.com/usercenter/paper/show?paperid=105c0jc00b2w0vd007490vp0w1387974&site=xueshu_se
- (16) Ministry of Ecology and Environment, 2019, Guiding Opinions on Improving the Capabilities of Environmental Monitoring, Utilization and Disposal, and Environmental Risk Prevention for Hazardous Wastes, https://www.mee.gov.cn/xxgk2018/xxgk/xxgk03/201910/t20191021_738260.html
- (17) State Council, 2021, Notice on Issuing the Implementation Plan for the Reform on Improving the Capacity for Regulation, Utilization and Disposal of Hazardous Wastes, http://www.gov.cn/zhengce/content/2021-05/25/content_5611696.htm
- (18) Ministry of Finance and other departments, 2021, Catalogue for Enterprise Income Tax Preferences for Environmental Protection and Energy and Water Saving Programs (2021), http://www.gov.cn/zhengce/zhengceku/2021-12/29/content_5665116.htm
- (19) China Securities Regulatory Commission, 2020, Notice of the Work Related to Promoting the Pilot Program of Real Estate Investment Trusts (REITs) in the Infrastructure Field, http://www.gov.cn/zhengce/zhengceku/2020-05/03/content_5508587.htm
- (20) Ministry of Ecology and Environment, 2020, Notice on Promoting IT-based Environmental Management of Hazardous Wastes, https://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202012/t20201231_815647.html
- (21) State Council, 2021, Notice on Issuing the Implementation Plan for the Reform on Improving the Capacity for Regulation, Utilization and Disposal of Hazardous Wastes, http://www.gov.cn/zhengce/content/2021-05/25/content_5611696.htm
- (22) National Development and Reform Commission, 2021, 14th Five-Year Plan on Comprehensive Utilization of Massive Solid Waste, http://www.gov.cn/zhengce/zhengceku/2021-03/25/content_5595566.htm
- (23) Ministry of Ecology and Environment , 2020, Technical specifications on identification for hazardous waste, https://www.mee.gov.cn/ywgz/fgbz/bz/bzwb/gthw/wxfwjbffbz/201911/t20191115_742662.shtml
- (24) Ministry of Ecology and Environment, 2021, Standard for pollution control on the non-hazardous industrial solid waste storage and landfill, https://www.mee.gov.cn/ywgz/fgbz/bz/bzwb/gthw/gtfwwrkzbz/202012/t20201218_813927.shtml