With many positive factors such as economic structure transformation, national policy support, expansion of market demand, the green industry in China is on a “fast track” of development. China On-line Environmental Protection Station believes that based on the fever on green technology in 2016, Chinese green industry will face a critical breakthrough point in 2017-2020.
Due to the high attention of China central government, the green industry has been fully reviving since 2007, and is developing by leaps and bounds. Since 2000, the investment which accounts for about 1-2% of GDP has breaking the capital bottleneck for pollution treatment, which creates an advantageous condition.
Looking back the whole “the Twelfth Five-year Plan”, the annual growth rate of green industry of China keeps more than 20%, and the market scale in 2015 even reaches 950 billion to 1.1 trillion. A large number of excellent green enterprises under market segmentation springs up. So far, there has been more then 77 listed companies relating to environment protection.
Green industry is fruitful in the past year. The government policy and the economic background boosts the development of green industry. Therefore, it can be predicted that the potential of green industry will be further tapped under the driven power of policy and supply-side reformation.
Based on it, many research institutions predict that in 2020, the total output of green industry of China is expected to reach 4 trillion, and the revenue of environment service industry may reach 1.5 trillion. With the increase of new market, China will shorten the gap of the green industry market with US, even expected to exceed US to become the largest market of green industry worldwide.
As a policy supportive industry, the government investment on pollution treatment is also an indispensable factor to promote the transformation of the industry, in addition to the the drive of the positive policy. It is estimated that during the period of“Thirteenth Five Year”Plan, the total investment on environment pollution in China will exceed 8 trillion, an increase of 90% over “the Twelfth Five Year Plan”period. As in the case of water utility sector, whose market space releases more rapidly, the predicted investment on wastewater treatment will exceed 580 billion, the black and odorous water will exceed 170 billion, and the sponge city construction will exceed 180 million, so we can judge from it that other industries will be the same.
At the end of 2016, according to the“ Thirteenth Five Year Plan of Energy-saving and Green Industry Development”, by 2020, the market share of efficient energy-saving and green product will be obviously enhanced, and a batch of critical core technology will have a breakthrough, which is advantageous for the formation of policy system for energy-saving and green industry development. The energy-saving and green industry will become a pillar industry of national economy.
There is no doubt that the green industry is like a delicious cake which will spark a rush of investment recently. But one thing need to be noted that the nature of green industry is the unification of environment, economy and social benefit. We should be careful about the short-term speculation behind the hot market so as to prevent the green industry from“loosing blood”.
Looking at other countries, the green industry has formed a complete and mature industry system in developed countries after many years of development. The output value of green industry in developed countries accounts for 10%-20% of the GDP, and shows a trend of constant rising. Back to China, the green industry has a late startup. The scale of companies is small, and the market mechanism is uncompleted. The output value only accounts for 5% of GDP. Therefore, it has a large potential space.
The green industry in China has a long way to go. After 20 years of development, the diversified pattern begins to show up in many key fields such as water, gas, solid waste. It needs a lot of effort for the deeper, farther, and wider development. At least, China Online Environment Protection Station believes that the green industry of China will face a critical breakthrough point in a period of time in the future.
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