Environmental protection has shifted from a “decisive battle” to a “protracted war”—how should environmental protection enterprises transform?
Release Date:
2023-01-07 14:50
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At the same time, the introduction of the new goals of peaking carbon emissions and achieving carbon neutrality has also presented fresh challenges for all sectors, including environmental protection enterprises.
Faced with this profound shift in demand, how should environmental protection companies transform themselves to adapt to the new landscape?
In this regard, leading firms may have thought more deeply and acted sooner. Their initiatives serve as clear indicators of industry trends.
At the same time, the introduction of the new goals of peaking carbon emissions and achieving carbon neutrality has also presented fresh challenges for all sectors, including environmental protection enterprises.
In the face of this profound shift in demand, how should environmental protection companies transform to adapt to the new landscape?
In this regard, leading companies may think more deeply and act sooner. Their moves serve as a clear bellwether for the industry.
What are the leading environmental protection companies currently focusing on, and how are they undergoing transformation? A glimpse can be gained by attending industry conferences.
On March 2, the annual “Environmental Entrepreneurs’ Networking Event” hosted by the All-China Federation of Industry and Commerce’s Environmental Chamber of Commerce was held. Companies such as Chengxin Shangjia Environmental Protection, Botian Environment, Qingxin Environment, and Xianhe Environmental Protection shared their transformation initiatives, which offer valuable insights and practical guidance for other enterprises.
Environmental protection has shifted from a “decisive battle” to a “protracted war.”
Before we delve into the transformation initiatives of various companies, let’s first provide an overview of the broader context of the environmental protection industry today, to help everyone gain a clearer understanding of this era.
According to Luo Jianhua, Vice President of the Environmental Chamber of Commerce of the All-China Federation of Industry and Commerce and a specialist in environmental policy, the current era has not seen a slowdown in environmental protection efforts; rather, it has entered a phase of “rebalancing.”
First, pollution prevention and control requires both “decisive battles” and a “protracted war.”
During the 13th Five-Year Plan period, we launched tough battles to address prominent environmental problems that adversely affected people’s lives—this was indeed essential.
Secondly, thanks to our efforts over the past few years, we have already picked all the “low-hanging fruit” in environmental protection; what remains are the “hard nuts to crack.”
For example, when it comes to environmental issues, the real challenge lies in managing domestic pollution. Over the past few years, we have undertaken large-scale construction of wastewater treatment plants, waste incinerators, and other such facilities, which has essentially resolved the problems associated with urban environmental infrastructure. However, construction alone is not enough; sustained, stable, and compliant operation over the long term is also essential.
At the same time, we still have several weak areas, such as VOCs, rural development, and soil remediation. Addressing these issues will also take time; they cannot be resolved overnight, so we must adopt a long-term, sustained approach.
Third, in recent years our efforts to protect the environment have relied primarily on administrative measures. However, environmental protection cannot depend solely on administrative tools; it must also make greater use of market-based and economic instruments, taking costs into account. Therefore, going forward, we should leverage market mechanisms more extensively in our environmental protection initiatives.
In short, environmental protection efforts have now transitioned from the “decisive battle” phase to a protracted “long-term campaign.” Environmental protection has been placed in the ICU—meaning it requires intensive, sustained attention. Moving forward, we must tackle some of the most intractable challenges head-on. This marks a new characteristic and new context for environmental protection work during the 14th Five-Year Plan period and beyond.
At the same time, Home has set the goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060, which in turn presents new challenges and demands for the environmental protection industry.
All of the above represent shifts on the “demand side” of the environmental protection industry: environmental governance needs are becoming increasingly sophisticated, and new targets of peaking carbon emissions and achieving carbon neutrality have been set.
Having discussed the demand side, let’s now turn to the supply side. On the supply side, the environmental protection industry has, in fact, been in a phase of recovery and healing over the past two years.
Zhao Lajun, President of the Environmental Chamber of the All-China Federation of Industry and Commerce and Chairman of Botian Environment, stated that the environmental protection industry has faced numerous difficulties and challenges over the past few years. On the one hand, there has been a mismatch between capabilities and market needs; on the other, a mismatch between funding availability and project requirements. As a result, under the prevailing circumstances at the time, investment-driven projects became increasingly prevalent in the sector. However, such investment-oriented activities are not traditionally within the core competencies of conventional environmental protection firms, leading to a strategic misalignment and ultimately to significant operational difficulties.
As a result, the entire industry has undergone intense turbulence and adjustment over the past few years, with many companies embarking on “mixed-ownership reform.” At present, all stakeholders are working hard to absorb these changes and adapt to their new positioning.
In short, both shifts on the demand side and adjustments on the supply side have underscored the imperative for the environmental protection industry to undergo a transformative shift, making it urgent for environmental firms to redefine their positioning and explore new strategic approaches.
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