According to a recent Bloomberg report, the Chinese government has stated that by 2020 households in China will, for the first time, have to pay for garbage disposal, and that landfill limits will be tightened. Other recent initiatives include raising recycling quotas in 46 major cities, including Beijing and Shanghai.
This recalibration of the market economics will provide many opportunities for development and investment in the industry. "The reason why solid-waste management companies have been undervalued by the market is that their customer is the government, instead of citizens and industrial enterprises," said Zhengtao Qi, an analyst at China International Capital Corp. "The establishment of a market system for the industry by 2020, with individuals paying for waste disposal, will shorten the payment cycle by more than half." About 41% of solid waste in China was incinerated in 2016, according the National Bureau of Statistics. “ New policies specify that the nationwide average must reach 50% by 2020, which creates opportunities for investment - as the profit margin on incineration is much higher than for trash separation or sanitation control” CICC's Qi said.
"Revised laws and follow-up implementation mean that the solid-waste market is only going to expand," Zhu Haibin, an analyst at Essence Securities Co., wrote in a report published in July. "The greatest potential is in sectors like garbage incineration and hazardous waste disposal, along with garbage classification and the expansion of household waste management from urban to rural areas."
As a world leading renewable energy and environmental management company, DP offers a range of commercially proven, reliable European technologies. Through technology partnerships and company acquisitions DP’s technologies include waste sorting, mass burn combustion, biogas, gasification, landfi¬ll remediation and waste water purification. DP believes that integrated solutions and strategies to maximise the value of waste up and downstream is essential to harness and maintain the value of infrastructure investments. However, whilst the technologies and capabilities to address this challenge exist, incorporating them profitably into existing infrastructure requires additional expertise.
The combination and range of DP’s solutions and knowhow provides the necessary integrated approach to the waste management process and addresses the multiple needs of an advanced waste management industry. DP has always believed in the development potential of China's waste management market and we are confident that our advanced waste management solutions will promote the holistic development of the industry in China and other emerging markets.
