Environmental pollution third party governance is unstoppable

The so-called environmental pollution third-party governance (hereinafter referred to as third-party governance) is a new model in which polluters pay environmental pollution fees by entrusting an environmental service company to pay for the pollution or by contract. Third-party governance is an important way to promote the professionalization and industrialization of environmental protection facilities construction and operation, and it is an effective measure to promote the development of environmental service industry.

The General Office of the State Council issued the "Opinions on the Implementation of Third-Party Governance of Environmental Pollution," and proposed to focus on such areas as environmental public facilities and industrial parks, and be guided by marketization, specialization, and industrialization to create a favorable market and policy environment, attracting We will increase investment in social capital, promote the establishment of a new pollution control mechanism for polluter pays and third-party governance, and continuously raise the level of pollution control in China.

According to the opinions, by 2020, significant progress has been made in the third-party governance of key areas such as environmental public facilities and industrial parks, and the efficiency of pollution control and the level of specialization have been significantly improved, and the vitality of social capital to enter the pollution control market has been further stimulated. The reform of the environmental public utilities investment operation system was basically completed. The supply system for efficient, high-quality and sustainable environmental public service marketization has basically taken shape; the third-party governance business mode and model tends to mature, and a number of emerging technical capabilities, high levels of operational management, and comprehensiveness have emerged. An environmental service company with good credit and international competitiveness.

Experts in the environmental protection industry believe that the “Opinions on the Implementation of Third Party Governance of Environmental Pollution” has the following highlights:

One of the highlights: The first high-profile document defines the scope and objectives of third-party pollution management.

In the past, documents on third-party governance of environmental pollution were issued by environmental protection agencies. It is the first time that the General Office of the State Council has issued "opinions" on third-party governance. The document clarifies that third-party governance is aimed at “environmental public facilities, industrial parks, and other fields”. With 2020 as the boundary, the level of specialization is improved, and business models and models are gradually maturing, and a number of environmental service companies have emerged.

Highlights 2: The main aspects of environmental pollution control are clearly covered by "opinions" and no dead ends. The "Opinions" clearly define the four aspects of third-party governance, including "urban sewage, garbage disposal facilities," "urban pollution site management and regional environmental remediation," "industrial parks and other industrial agglomeration areas," "rejection, Self-governance of enterprises and entrusting environmental service companies to carry out pollution control." The scope of definition is broader than before, and it is more conducive to pollution control companies to expand their markets.

Highlights 3: A number of measures are intended to nurture and improve the third-party environmental pollution control market. The "opinions" put forward a number of measures to innovate and improve the third-party pollution treatment market. Compared with the previous major breakthroughs, there are the following points: 1. Adopt tender or competitive negotiation methods to avoid low-cost and low-quality bids; 2. Develop environmental capital markets and give priority to the approval of qualified third-party governance companies. Financing, issuance of corporate bonds, etc., support the issuance of debt financing instruments, support the appropriate development of financial leasing business, and introduce low-cost foreign capital.

It is a historical trend that foreign third-party pollution control has become mainstream, and the downstream demand of domestic environmental protection companies will further increase. In countries with higher GDP levels, the proportion of third-party environmental governance in the overall environmental protection investment is higher. Domestically, China will also refer to the successful experience of foreign countries and gradually transfer the current government or pollution companies' own governance work to the hands of third-party professional environmental protection companies. The downstream demand faced by professional environmental protection companies will further increase. It is expected that the sewage treatment and industrial park pollution control will be a market worthy of special exploitation, and the environmental restoration market will be gradually released with the improvement of supporting funds and policies.