Energy-saving and emission reduction analysis

In recent years, energy conservation and emission reduction have attracted more and more attention. Recently, the National Development and Reform Commission released the “Analysis of Energy Saving and Emission Reduction Situation in the First Half of 2013”, which summarized the energy conservation and emission reduction situation in the first half of 2013, existing problems, and the work plan for the second half of the year. Energy saving is emphasized and enjoy economic support. The new model is expected to be launched. Atmospheric governance has become a top priority and water pollution control plays a minor role. Due to the situation, environmental protection instruments will have great potential.

In the government's exposition of "ecological civilization", the priority of energy conservation and comprehensive utilization of resources is higher than that of pollution sources. The emphasis of the NDRC has been consistent with the expression of the government's ecological civilization since the "18th National Congress." In addition, taking into account the division of work between the NDRC and the Ministry of Environmental Protection, the NDRC's document emphasizes energy conservation rather than emission reduction, which is also reasonable.

Energy-saving enjoys economic support. The new model is expected to be launched. The documents of the National Development and Reform Commission emphasized that "continue to increase financial support for contract energy management projects," and "promulgate detailed implementation rules for implementation of tax incentives," and proposed the promotion targets for energy-saving lighting products and highly efficient energy-saving motors. According to this statement, we expect that the preferential policies for tax incentives, energy saving incentives, etc. enjoyed by existing energy-saving service companies with contracted energy management models can at least be extended, and even obtain new fiscal and taxation policies. In addition, the document mentions "research on the implementation of energy-saving transactions."

If the energy-saving transaction becomes a reality, the total energy consumption of high-energy-consuming enterprises is limited, and additional energy consumption will be obtained through transactions, which will greatly enhance the energy-saving transformation of enterprises or adopt the enthusiasm of contract energy management.

The roadmap for governance of pollution sources has once again been clarified. According to the World Instrument Network, the Development and Reform Commission’s documents, in the third part of the “Work Plan for the Second Half of the Year”, sort out the major pollutant reduction work. The first is to implement the Air Pollution Prevention Action Plan, followed by The Clean Water Action Project was initiated, followed by the "Comprehensive Control of Heavy Metal Pollution," "Soil Pollution Prevention and Control Project," "Resource Disposal Waste Demonstration," and "Scale Prevention of Poultry Farming Pollution." This ranking is basically consistent with the previous statement made by Minister of Environmental Protection Minister Zhou Shengxian at the meeting of the Ministry of Environmental Protection. We believe that this can be seen as a roadmap for promoting the current government’s environmental pollution governance. Atmospheric governance has become a top priority and water pollution control plays a minor role. This can bring more incremental demand for existing environmental companies, mainly air and water pollution treatment, and waste resource treatment.

The issue of smog is a short-term focus, recommending targets for pollution control policies, and lower valuation targets. The haze problem is still the focus of the government's attention in the short term and has been emphasized again in the NDRC's documents. Ten policies for air pollution control have been introduced. Event factors that can still be expected in the short term are the introduction of the full text of policies and the convening of an air pollution prevention and control conference. We believe that under the premise that the policy has been fully digested by the market, we can choose the target that will fully benefit from the policy and the current low valuation target in the environmental protection sector. It is recommended that Xuedilong, the leading company of flue gas monitoring equipment, and Tianmu, the leading energy management company of the contract, save energy.