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(Last updated: 22 Mar 2011)
Trends and opportunities
Wanwu Initiative
Be part of a unique initiative to encourage exports and two-way investment between Australia and China in clean energy, green-building and environment.
The Wanwu Initiative has been developed by Austrade to provide a co-ordinated marketing platform to introduce capable Australian firms into Chinese eco-projects and funding opportunities.
Marketing of the initiative will benefit from a unique Chinese cultural branding, with the Taoist term Wanwu (万物 – myriad things or universe) used in the title to represent the traditional Chinese theme of the unity of man and nature and the importance of conservation.
Austrade has developed a Chinese language directory to showcase the capabilities of Australian environmental, clean energy and green-building companies. The directory has been marketed to Chinese organisations pursuing major projects in relevant industry sectors, organisations such as urban and rural local authorities, state-owned conglomerates, energy generators and property managers. The directory has also been disseminated through selected trade shows (including the 2010 Shanghai World Expo).
Companies in this initiative may also have the opportunity to be considered for investment funding under a proposal to establish and facilitate an independent international advisory panel of China-focused investment groups.
For further information, please visit Wanwu Initiative.
The market
As China has progressed along the economic reform path, its environment has suffered degradation from rapid urbanisation and industrial development. Pollution and resource misuse have resulted in environmental damage in both the rural and urban settings.
China's environmental protection industry has developed in response to growing environmental degradation over the past two decades. The industry produces the majority of its own goods and services for pollution control and environmental protection though in some areas, the technology levels are low and below international standard.
China is experiencing the fastest growth in demand for environmental products and services in the world. It is estimated that environmental damage costs up to eight per cent of China's gross domestic product each year.
China’s environmental protection priorities (2011-2015)
Acceding to the national work conference on environmental protection held recently, the 12th Five-Year Plan (2011-2015) will include broader environmental goals than ever before.
Nitrogen oxide and ammonia nitrogen will be included in the country's mandatory pollution control program between 2011 and 2015. The former is produced by cars, while the latter, a water pollutant. The current program only manages emissions of sulfur dioxide and chemical oxygen demand.
There will be an establishment of a sound prevention mechanism to tackle the increased outbreaks of heavy-metal pollution accidents. By 2015, the country will see an optimised industry structure for the heavy-metal sector, an emergency management system and an evaluation system on pollution and health risk. It's reported that about 75 billion yuan will be used in the next five years. (Source: Beijing Review, Market Watch No. 9, 2011)
In R&D, China will increase science and technology research investment in the area of environment and resources protection over the next five years. Five important focal areas for these increased efforts are:
- Advanced environment monitoring
- Technology for pollution emergencies
- Regional clean air key technology
- Contaminated soil/site remediation
- Risk control technology for chemicals
Opportunities
China is primarily interested in importing technologies rather than equipment. It costs less to import technologies to upgrade its domestic equipment manufacturing.
Technical cooperation and joint ventures are therefore of most interest to local environmental companies. Increasing investment in environmental protection and China's World Trade Organization accession, are providing a range of opportunities for Australian companies:
- Advanced sewerage treatment processes and biotechnology treatment technologies
- Nitrogen oxide and ammonia nitrogen reduction and removal technologies
- Heavy metal reduction and treatment technologies
- Special waste (eg. electronic, magnetic, etc) management, recycling and disposal
- Remediation: soil and water (include heavy metals recycling)
- Domestic and industrial waste recycling and industrial waste stabilisation
- Desulphurisation technologies
- Noise control materials and equipment
- Environmental emergency response systems
- Consulting services (eg. water resource management planning, risk assessment, green and energy-saving design, etc)
- Meters and instruments for environmental monitoring and automation control systems
- Radioactive and electromagnetic wave pollution control
- Carbon capture and treatment
- Investment
Other sectors offering potential opportunities for Australian suppliers include:
- Clean production processes
- Energy-saving and efficient technologies in industry and public buildings
- Renewable energy – IP transfer, management and maintenance
- Industrial effluent treatment
- Air pollution control equipment
- Monitoring systems
- Waste recovery, reuse and recycling
- Green products
- Urban environmental protection planning
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