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The 10th Five-Year Plan for the Development of the Environmental Protection Industry

Issued by STATE  ECONOMIC AND TRADE COMMISSION, PEOPLE' REPUBLIC OF CHINA

The train of thought, key goals and key points for the development of the environmental protection industry in the 10th Five-Year Plan period

1. The train of thought for the development

The 10th Five-Year Plan Period is important for realizing the 3rd step of the strategic goal for the modernization construction. According to the strategic plan adopted in the Fifth Plenary Session of the 15th Central Committee of the Chinese Communist Party and the Fourth Session of the Ninth National People's Congress, the basic train of thought for the development of the environmental protection in the 10th Five-Year Plan Period is as follows: adhere to the principle of following the guidance of the market, taking science and technology as the forerunner, focusing on the efficiency, and letting enterprises be the main players, strengthen the policy guidance, rely on technological advances, cultivate and standardize the market, strengthen the supervision and administration, intensify the environmental law enforcement, gradually establish a macro regulating system for the environmental protection industry that adapts to the socialist market economic system, establish a unified, open, ordered and competitive market operating mechanism for the environmental protection industry, provide the environmental protection with technological guarantee and material basis so as to adapt to the increasingly strict environmental protection requirements for the environmental protection industry and make it become a new point for economic growth. 

2. Key Goals

In order to satisfy the requirements of the environmental protection and ecological construction for the environmental protection industry, the environmental protection industry shall achieve rapid development in the 10th Five-Year Plan Period. By 2005, it is expected that the total output value of the environmental protection industry in China shall reach 200 billion RMB yuan, including 55 billion yuan of the manufacturing of environmental protection equipment (products), taking up 27.5%, 95 billion yuan of the output value of comprehensive utilization of resources, taking up 47.5%, and 50 billion yuan of the output value of environmental services, taking up 25%. During the 10th Five-Year Plan Period, the average annual growth rate of China's environmental protection industry shall be about 15%. Develop a number of environmental protection technologies and products with international advanced level and independent intellectual property rights during the 10th Fivey-Year Plan Period. Consolidate and improve a number of environmental protection technologies and products with a certain degree of comparative advantages and huge demand in domestic markets. Popularize and bring into application a number of advanced and mature environmental protection technologies and products. Obsolete in accordance with the law number of environmental products with irrational design, backward performance, high consumption and low efficiency, and excess supply in the market.

By 2005, establish 3 to 5 large-scale environmental protection companies and enterprise groups with international competitiveness. Develop a number of small and medium-sized environmental protection enterprises with technological advantages that provide large-scale companies and enterprise groups with services that are new, distinctive, specialized and sophisticated. Provide support for a number of environmental service enterprises so as to improve the level of socialized services for the environmental protection industry.

3. Key Points

(1) Prevention and control of air pollution

A. Flue gas desulfurization. Focus on the development of flue gas desulfurization technologies and equipment for coal-fired power plants. Focus on the design technology with independent intellectual property rights. By 2005, through research and development, the introduction, digestion and absorption, we shall be able to independently complete the design of flue gas desulfurization technique for 200MW and above units for coal-fired power plants. Develop appropriately the manufacturing of specialized desulfurization equipment so as to ensure the manufacturing and supply of complete sets of equipment for desulfurization projects. In the meantime, according to the requirements of the Law of the People's Republic of China on the Prevention and Control of Air Pollution, develop appropriately practical and simple desulfurization techniques, technologies and equipment that can support industrial boilers, furnaces and kilns. During the 10th Five-Year Plan Period, focus on the development of wet desulfurization techniques so as to satisfy the requirements of flue gas desulfurization for thermal power generating units with large capacity and high parameters. Develop appropriately techniques such as flue gas fluidized-bed desulfurization, spray drying desulfurization, furnace calcium-spraying and tail-end humidifying desulfurization, and electron-beam desulfurization so as to adapt to the flue gas desulfurization of small and medium-sized and old units.

B. Dust control. Restrain the development of conventional cottrells. Expand the application areas of cottrells for dust with high concentration, high temperature and advance, and corrosive gases. Develop complete sets of monitoring instrument and equipment. Improve the specifications and varieties of section bars. Lower down the principal weight. Improve computer model selection technologies. Develop pulse power supply, computer-controlled and variable voltage power supply devices. Focus on the development of cottrells used in special environments. Develop appropriately small and medium-sized cottrells used in various furnaces and kilns. Improve the performance of supporting electromechanical products and materials for bag-type collectors. Improve the product quality. Develop high-temperature resistant and corrosion resisting filter materials and fibre raw materials. Based on this, develop bag-type collectors with a life span of more than 3 years that can handle a volume of wind more than 100,000 cubic meters every hour and can resist a temperature over 250 C. Obsolete cyclone dust collectors with backward technologies and poor quality. Focus on the development of combined dust collectors that integrate high efficiency, low resistance, dust elimination together with desulfurization.

C. Prevention and control of automobile tail gas. According to the objectives of the pollution control of the automobile industry, focus on the control of passenger cars and light vehicles. For gasoline engines, popularize the close loop electric control fuel supply system, install the three-way catalytic converter, and popularize technologies such as lean burn, variable valve timing and cylinder direct injection. For diesel engines, popularize technologies such as supercharge inter-cooling, diesel engine common rail, and install the oxidation catalytic converter.

D. Treatment of toxic and harmful gas. Focus on the development of technologies and equipment for the control of organic waste gas such as high-efficient and energy-saving catalytic burn and the recycling of carbon fibre, and technologies and equipment for the control of industrial toxic gas and malodorous gas.

(2) Prevention and control of water pollution

A. Treatment of municipal sewage. Focus on the development of treatment technologies and complete sets of equipment that can dispose daily more than 200,000 tons of municipal sewage. Develop technologies such as high-efficient and energy-saving biological denitrification and dephosphorization, circulating active sewage sludge, moving bed biological film, and equipment such as UASB reactors, anaerobic biological filter chambers, anaerobic bulking beds, and anaerobic fluidized beds. Develop equipment that can adapt to various working conditions such as low-speed and multi-pole centrifugal blower, diving sump pump, specialized equipment for oxidation trench, new-type aeration equipment, specialized equipment for sewage sludge treatment. Improve the manufacturing level of equipment such as grille, aeration, sludge scraping, suction, lifting and dewatering equipment and sewage sludge marsh gas power generating equipment. Improve the operating and service life of pump, fan, valve and related electrical equipment. Focus on solving problems such as poor quality and incomplete varieties of existing domestic equipment. In the meantime, develop sewage treatment technologies and equipment, oxidation trench and oxidation pond sewage treatment machinery, enhanced aeration technologies and equipment, sewage sludge treatment technologies and equipment for small residential areas. According to the requirements of accelerating the construction of towns in China, accelerate the development of small and medium-sized municipal sewage treatment technologies and complete sets of equipment that can dispose daily less than 100,000 tons of municipal sewage.

B. Treatment of industrial waste water. Focus on the development of water treatment unit technologies and equipment. Improve the specialized production scale so as to become standardization and serialization and improve the product quality. Focus on the development of multi-function combined water treatment technologies and equipment, high-concentration organic waste water treatment technologies and equipment (used in fermentation, pharmaceuticals, paper-making, slaughtering waste water treatment areas), surface treatment of waste water, waste liquid and non-ferrous metal mining waste water treatment technologies and equipment, waste water in-depth treatment, purification, sterilization technologies and equipment, middle-water treatment, recycling technologies and complete sets of equipment, oil-bearing waste water treatment and oil filed purification technologies and equipment, coal mine ground water and high-turbidity salty waste water treatment technologies and purification equipment, film treatment, micro-filter purification technologies and equipment. 

(3) Treatment of solid waste

A. Treatment of municipal refuse. Focus on the development of sanitary refuse filling and burying technologies and equipment, burning technologies and complete sets of equipment for house refuse of small and medium towns, and refuse collecting, sorting and pre-treatment technologies and equipment so as to standardize and serialize the products. Key sanitary refuse filling and burying technologies and equipment include: technologies and complete sets of equipment for filling and burying gas recycling projects, new-type impervious filling, burying lining and covering materials, specialized filling and burying appliances, refuse filling and burying percolation liquid treatment technologies and complete sets of equipment. Develop and improve large-scale refuse composting and simple composting technologies and complete sets of equipment, mainly including low-cost composting technologies and equipment, organic refuse anaerobic digestion technologies and equipment. Develop appropriately refuse burning technologies and complete sets of equipment, focusing on refuse burning tail gas control technologies and equipment.

B. Treatment of toxic and harmful waste. According to the successful experience of developed industrial countries in using high-temperature oxidation methods to treat toxic and harmful industrial waste, focus on the development of closed storage and transportation technologies and equipment for toxic and harmful waste, specialized high-temperature oxidation burning technologies and equipment. Establish several toxic and harmful industrial waste treatment centers.

(4) Water-saving technologies and equipment

Focus on the development of water-saving technologies and equipment for industries with high consumption of water such as thermal power generation, textile, petrochemical, paper-making and metallurgical industries, which mainly include high-concentration ash conveying technologies, dry ash disposal and dry residue extraction technologies and equipment for the power generation industry, high-efficient printing, dyeing and washing technologies, anhydrous and water-saving printing and dyeing technologies and equipment for the textile industry, reefing sewage treatment and recycling, oil field thick oil in-depth treatment and recycling technologies and equipment for the petrochemical industry, pulping washing system close-circuit circulating technologies, white water (middle water) recycling, and alkali recycling technologies and equipment for the paper-making industry, and dry coke quenching technologies, air cooling technologies and equipment for the metallurgical industry. Develop technologies and equipment that can reuse industrial sewage after the treatment in processing water, circulating water and miscellaneous water, technologies and equipment that can improve the concentration rate of the circulating cooling water and recycle the cooling water, comprehensive municipal sewage recycling technologies and equipment, and various water-saving appliances. Develop comprehensive utilization and desalination technologies and equipment for seawater and salt water, and high-efficient air-cooling technologies and anhydrous product technologies.

(5) Ecological environmental protection technologies and equipment

According to the requirements of the Nation-wide Ecological Construction Planning and the Outline of the Nation-wide Ecological Environmental Protection, focus on the development of soil and land conservation and desertification prevention technologies and equipment, conscientiously develop technologies and equipment with respect to steppe construction, water-saving agriculture, dry farming, eco-agriculture, and tree and grass planning.

(6) Clean production technologies and equipment

Focus on the development of technologies and equipment with high utilization of resources and energy and less production of pollutant to replace backward technologies and equipment with high consumption of materials and energy and more production of pollutant. Devote great effort to the development of clean production technologies and equipment in key industries such as the metallurgical industry, the chemical industry, the light industry, the non-ferrous industry, the power generation industry and the coal industry.

(7) Environment monitoring instrument and apparatus

Focus on improving the grade of existing environment monitoring instrument and apparatus, and improving the reliability, intelligence and accuracy of the equipment. Apply high and new technologies such as automatic sampling, data acquisition and processing, remote terminal control into environment monitoring instrument and apparatus. In order to satisfy the demand of the environmental management, accelerate the development of pollution source exhaust online monitoring technologies and complete sets of equipment, portable monitoring instrument, especially waste water, flue gas exhaust online monitoring technologies and complete sets of equipment. Develop the automatic control system for pollution control facilities for sewage and refuse. Accelerate the construction of municipal environment monitoring networks and watershed water quality monitoring networks. In the meantime, develop automobile tail-gas and noise monitoring instrument and apparatus.

(8) Environmental protection materials and chemicals

Focus on the development of high-performance environmental protection materials and chemicals, which mainly include biological film material, microbiological treatment additives, high-temperature resistant, corrosion-resisting dust extraction filter materials, high-performance water treatment flocculent, coagulant, new-type bacteria killers, and high-performance sound absorption and insulation materials.

(9) Comprehensive utilization of resources

A. Comprehensive utilization of paragenetic and associated mineral resources. Focus on improving the level of comprehensive development and utilization of paragenetic and associated mineral resources. Accelerate the development of new technologies to recover gold, silver, iron, rare earth, niobium, vanadium and titantium from non-ferrous rare metal paragenetic and associated mineral resources. For coal series of paragenetic and associated mineral resources, focus on the ultrafining, brightening and modifying of kaolin so as to bring along the development of comprehensive utilization technologies of bauxite, fire clay, pyrite and diatomite. Accelerate the development and application of tailings processing and utilization technologies in the production of building materials and products.

B. Comprehensive utilization of three "wastes" (waste gas, waste water and industrial residue). Focus on the development of technologies to use coal gangue in power generation and producing building materials and products, which mainly include gangue circulating fluidized bed and power generating technologies and complete sets of equipment, rigid and semi-rigid plastic mould brick producing technologies and equipment, technologies and complete sets of equipment that use full gangue in producing hollow bricks, technologies to replace part or full clay with gangue in producing cement raw materials. In coal mines, establish a number of coal gangue comprehensive utilization projects. Develop pulverized coal ash separating technologies and equipment. Increase the proportion of pulverized coal ash in high-grade highways, hydropower station dam and commercial cement. Develop technologies that use pulverized coal ash in railway construction. Accelerate the development of technologies and equipment that use industrial residue from chemical, metallurgical and non-ferrous industries in producing building materials and products, especially technologies and equipment that use industrial residue with a large volume and high added value in producing building materials and products. Accelerate the construction of paper-making alkali recovery, alcohol slot liquid comprehensive utilization projects. Develop advanced residual heat and top pressure utilization technologies and equipment.

C. Recovery and utilization of waste and old material. Focus on the development of waste and old domestic apparatus and computer recovery and utilization technologies, mechanized and centralized scrapped automobile dismantling technologies and equipment. Develop recovery, processing and utilization technologies and equipment for waste paper, waste plastic, waste tyres and waste cells, including unit or combined equipment for the collecting, separating, cleaning, washing, crushing, packing, transportation and recovery of waste materials. Build several production lines for mechanized and centralized scrapped automobile dismantling, waste domestic apparatus and computer recovery and processing, several fine rubber powder processing projects for waste rubber and tyres, and several production lines for the recovery and process of waste cells and non-ferrous metals such as lead, copper, aluminium, and zinc. 

(10) Environmental services

Focus on the development of overall contract services for environmental projects, including financing, design, complete sets of equipment, installation, debugging and operation services. Devote great effort to the development of environmental pollution control services and specialized environmental protection facility operation services. Develop environmental protection technologies, management and information services, and consulting services such as environmental impact evaluation, environment monitoring, environment investment and risk evaluation.

4. Strategies and measures

(1) Formulate and improve policies for the environmental protection industry and promote the sound and rapid development of the environmental protection industry

Formulate and organize the implementation of policies for the environmental protection industry. Encourage the development of advanced, economic, high-efficient and market-demanding environmental protection technologies, techniques and devices (products). Restrain the development of backward environmental protection technologies, techniques and devices (products). Obsolete backward production capacity, techniques and products in accordance with the law. Guide the direction of the development of the environmental protection industry.

Further formulate taxation policies to encourage the development of the environmental protection industry.

Continuously promulgate lists for development encouraged in the environmental protection industry and appropriate polices and measures. Improve comprehensive utilization of resources and preferential tax deduction and exemption policies. Further strengthen the implementation of such policies.

Raise the charge standards for enterprise pollution discharge so as to allow the charge for pollution discharge to reach a rational level and stimulate the enthusiasm of the enterprise to control the pollution. Accelerate the establishment and improvement of the charge system for municipal sewage and refuse treatment, and adjust the charge standard for municipal sewage and refuse treatment to an appropriate level, so as to meet the requirements of construction and operation of municipal sewage and refuse treatment facilities.

Regions with conditions shall establish special funds for the development of the environmental protection industry and focus the support on the development of the environmental protection industry.

Formulate and implement related policies and measures to encourage enterprises of various types of ownership to invest in the environmental protection market.

(2) Rely on technological advances and strengthen the industry's capability for sustained development

Focus on the key points for the development of the environmental protection industry. Accelerate the development of environmental protection technologies. Conscientiously arrange key technological tackling tasks for the environmental protection industry in the technological and scientific plan and ensure that the input in the development of environmental protection reach a certain proportion. Strengthen the building of the capability of technological innovation of environmental protection enterprises and increase the input in technological innovation. Further promote the combination of production, teaching and research and accelerate the transformation and industrialization of scientific and technological achievements in environmental protection. Accelerate the popularization and application of advanced and mature environmental protection technologies.

Combine the introduction of technologies with digestion, absorption and innovation. Accelerate the technological transformation of environmental protection enterprises. Promote the upgrading and updating of environmental protection products. Introduce advanced foreign environmental protection technologies through various ways, based on digestion, absorption and innovation, make comprehensive integration and application development, and develop core technologies and dominant products with independent intellectual property rights.

Accelerate the process of localization of key technologies and equipment in the environmental protection industry. Establish the management system, capital support system, policy support system and quality insurance system favorable for the localization. Gradually develop an operation mechanism for the localization with the guidance of the government and the enterprise as the principal. Put the localization of key technologies and equipment in the environmental protection industry as key contents in the State Technological Innovation Plan for support. Organize and implement a number of localization demonstration projects and provide them with financial and fund subsidies. Rely on the demonstration projects to form backbone environmental protection enterprises, improve the project overall contracting and equipment serializing capability, grasp core technologies, seize the technological commanding point, and bring into full play the leading role.

(3) Strengthen supervision and management, cultivate and regulate the environmental protection market

Be determined to rectify local protectionism, trade monopoly, market segmentation, and market environment that hamper the development of the environmental protection industry. Use comprehensively economic, legal and necessary administrative means to establish a unified, open, ordered and competitive environmental protection market. In accordance with related state laws, rules and regulations with respect to product quality, standards, bidding and tendering, and anti unfair practices in competition, conduct administration in accordance with the law, strengthen supervision and management of the environmental protection market, and regulate the behavior of the market. Protect the participation of the enterprise in the market competition in accordance with the law.

Accelerate the establishment and improvement of China's environmental protection product standard system. Formulate and promulgate as soon as possible key environmental protection product standards, including the formulation of technological standards and specifications for some key environment projects. Take further measures to strengthen the supervision and inspection of the quality of environmental protection products.

Establish a standardized environmental protection product certification system, and conduct standardized certifications according to the principle of enterprise voluntariness, unified state administration and third-party certification.

(4) Explore and establish a development mechanism for the environmental protection industry that can meet the requirements of the socialist market system

Conscientiously explore and establish a diversified environmental protection investment and financing mechanism that adapts to the market system and stimulate the enthusiasm of the society to invest in environmental protection and the environmental protection industry. The state shall encourage enterprises with conditions to adopt multiple investment and financing modes such as the joint stock system and stock issuing to invest in the environmental protection industry, so as to realize the diversification of investment principals and the diversification of financing principals, and form a diversified investment setup that combines the government with enterprises and the society.

The construction and operation of the municipal environmental protection infrastructure shall be implemented by the enterprise and the market under the unified planning, support and supervision of the government according to the law. In cities where a charge system has established, funds can be financed according to the conventional international BOT investment and financing mode, or according to the joint stock system mode, where the government, enterprises and individuals invest together in the construction and operation of the municipal environmental protection infrastructure. Establish as soon as possible a socialized, market-oriented and specialized operation mechanism for the construction and operation of the municipal environmental protection infrastructure. Enterprises with conditions may make an attempt to make pollution control facilities independent from the enterprise's production process to make individual cost accounting, and let a specialized pollution control company to contract the operation of environmental protection facilities. The enterprise and the pollution control company bear related economic and environmental protection responsibilities according to the contract.

(5) Strengthen the leadership and do well the organization and implementation of the plan

The environmental protection industry involves a wide range and needs coordinated effort and great support of all regions and relevant departments. All regions and relevant departments shall conscientiously strengthen the leadership of the environmental protection industry, establish and improve the coordination mechanism among departments. Economic and trade commissions at all levels shall bear the responsibility of the organization and coordination of the development of the environmental protection industry, formulate the local development plan for the environmental protection industry in line with the local conditions and under the instruction of the state development plan for the environmental protection industry, and conscientiously organize the implementation. The formulation of regional development plans for the environmental protection industry shall be combined with each other's advantages, highlight the key points, define the development objectives, make rational layout, readjust the structure, avoid a general rush into action, and prevent repetitive construction.

(This English version is for your reference only.In case any discrepancy exists between the Chinese and English context, the Chinese version shall prevail.)

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