Introduction: Recently, the National Development and Reform Commission released the "Analysis of Energy Conservation and Emission Reduction…
Recently, the National Development and Reform Commission released the "Analysis of Energy Conservation and Emission Reduction Trends in the First Half of 2013," summarizing the energy conservation and emission reduction situation, existing problems, and work plans for the second half of the year.
Energy saving is emphasized. In the analysis by the NDRC, whether it is the summary of the situation in the first half of the year, existing problems, or the work plan for the second half, energy conservation is the focus. In the government's discussions on "ecological civilization," energy conservation and comprehensive resource utilization are prioritized over pollution source control. The key points emphasized by the NDRC align with the government's statements on ecological civilization since the 18th National Congress. Moreover, considering the division of labor between the NDRC and the Ministry of Environmental Protection, it is reasonable for the NDRC's documents to emphasize energy conservation rather than emission reduction.
Energy saving enjoys economic support, and new models are expected to be launched. The NDRC's document emphasized "continuing to increase funding support for contract energy management projects," "issuing specific implementation rules for tax preferential policies," and proposed promotion targets for energy-saving lighting products and high-efficiency energy-saving motors. Based on this statement, we expect that the tax incentives, energy-saving incentives, and other preferential policies enjoyed by existing energy-saving service companies under the contract energy management model will at least be extended, and may even receive support from new fiscal and tax policies. In addition, the document mentions "studying the implementation of energy-saving trading."
If energy-saving transactions are realized, the total energy consumption of high-energy-consuming enterprises will be limited, and additional energy consumption will be obtained through trading, greatly encouraging enterprises to carry out energy-saving retrofits or adopt energy contract management.
The roadmap for pollution source control has been clarified once again. In the third part, "Work Plan for the Second Half of the Year," the NDRC's document ranks the main pollutant reduction efforts: first is "Implementing the Air Pollution Prevention and Control Action Plan," followed by "Launching the Clean Water Action Project," followed by "Comprehensive Heavy Metal Pollution Control," "Soil Pollution Prevention and Control Project," "Resource Treatment Waste Demonstration," and "Large-scale Poultry Farming Pollution Prevention." This ranking is basically consistent with what Minister Zhou Shengxian of the Ministry of Environmental Protection previously stated at a meeting. We believe this can be seen as a roadmap for advancing environmental pollution control under this administration. Air pollution control has become a top priority, while water pollution control is secondary. Among these, the main incremental demands for existing environmental protection companies are air and water pollution control, as well as resource treatment of waste.
Smog is a short-term priority; we recommend both those benefiting from pollution control policies and undervalued targets. The issue of smog remains a key concern for the government in the short term and has been reiterated in documents from the National Development and Reform Commission. Ten policies for air pollution control have already been introduced, and in the short term, key events to look forward to include the release of the full policy text and the convening of air pollution prevention and control conferences. We believe that once the policy has been fully digested by the market, we can choose targets that fully benefit from the policies, as well as currently undervalued assets within the environmental protection sector. Recommended are Xuedilong, a leading company in flue gas monitoring instruments, and Tianhao Energy Saving, a leading contract energy management company. For details, see reports such as "Renovating Small Coal-Fired Boilers to Create a Bigger Monitoring Cake" and "Style Transformation, Focusing on Expanding in the Dry Quanning Coke Sector."
Article link: China Instrument Network http://www.ybzhan.cn/news/Detail/37774.html
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