“WPCAP” Brings Business Opportunities

 After the promulgation of “Air Pollution Control Action Plan”, another important pollution prevention plan called “Water Pollution Control Action Plan” (TASE: WPCAP) is going to be launched, which will promote the development of environmental industry. The total investment of WPCAP is over 2 trillion. It focuses on upgrading and reconstruction of industrial wastewater treatment and municipal sewage treatment.

According to analysts, considering major waste water plants need to be finished in 3 years, investment cost around 525oyuan/ton, the yearly investment after announcement of WPCAP will reach or even more than 10.8 trillion yuan. 

Water pollution, a matter of life and death

 It is said that there are more than 1700 pollution accidents happened in China every year. Although government has taken large efforts to managing water pollution, the situation is still heading worse. The China Water Value Index 2014 showed that water pollution, industrial sewage emissions and overuse of water are the major reasons. Over 96% of Chinese residents believe that China is facing a serious water problem and it need to be solved immediately.

With River & lake ecological health deteriorating, The service function and ecological supply ability of water declined seriously. It is crucial for government to implement total pollution load control. WPCAP enclose all proposals from Chinese Research Academy of Environmental Sciences, including main stream total pollution control and tributary comprehensive treatment, lakes eutrophication control, water environment improvement and water supply safety secure system, industry water emmission full process control, rural environment management, poisonous and harmful substance Emission reduction and risk control, water conservation and damaged water remediation, watershed management, etc. 

Water treatment market, boundless opportunities

 Air, Water and Soil pollution control are the top 3 challenges for Ministry of environmental. WPCAP is one of the biggest solutions for water pollution control. The legislation will bring over ten thousand million yuan market value, and it is definately favorable news for relative environmental companies and capital market.

 The main idea of WPCAP could be divided into 2 parts. Firstly, it is to ensure water quality in drinking water sources. Secondly, it is to better governance water pollution especially black smelly one which has influenced our life. In terms of specific measures, government needs to drastically reduce industrial pollution emissions and better manage municipal pollution emission, meanwhile, to better treat rural rivers and branches.

 In 2014, China invested 5.5 billion yuan in water pollution control in key rivers. The investment has set up 339 projects of sewage treatment plant, garbage treatment plant and some other comprehensive water environment treatment plant. The MEP(Ministry of Environmental Protection of the People’s Republic of China) estimated that the investment after WPCAP will be over 2 trillion yuan and investment of China's urban sewage treatment and recycling facilities construction will be approximately 430 billion yuan.

 Undoubtedly, WPCAP will be a highlight of environmental protection in early 2015. Meanwhile, it will also overall benefit many sub-sectors in the field of water-related.