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"Since last year, as a practitioner of the energy conservation and environmental protection industry, I feel that good news is good almost every day." At the beginning of the interview, Wang Xiaokang, chairman of China Energy Conservation and Environmental Protection Group (hereinafter referred to as China Energy Conservation), turned over the thick information in his hand. The reporters listed the policies and regulations related to the energy conservation and environmental protection industry in the past year.
Companies that benefit from these policies are not limited to energy saving. Look at the environmental protection concept stocks that are gradually rising in the stock market, so it is clear at a glance.
However, as the largest technology-based service industry group in China's energy conservation and environmental protection field, China Energy Conservation does not seem to be preferentially treated in the market competition. In the past year, the news about energy-saving and environmental protection enterprises has been very hot, but there are not many hot news about China's energy conservation. Wang Xiaokang is rarely seen in the media.
"The environmental protection industry sometimes encounters not technical problems, but conscience issues. Some of our businesses do not make money, or even lose money, such as hazardous waste disposal. Private enterprises do not dare to do, and are not willing to do, we have to do This is the responsibility. We must first complete the environmental benefits and then complete the economic benefits." Whenever the question involves how to make money or the capital market, Wang Xiaokang is not willing to talk more. He prefers to talk about environmental protection and technology.
"95% of China's energy-saving business is centered around the energy-saving and environmental protection industry. In a few large businesses, we are the largest in China. It can be said that the situation is very beneficial to us now, and we also have an absolute advantage in terms of technology and volume. However, I am particularly worried that the concern is not the development of the enterprise, but whether the whole society can truly achieve energy conservation and environmental protection."
Wang Xiaokang claimed to be a "cleaner." Every time he introduces energy saving, the first business he talks about is garbage disposal. "When I see garbage and sewage, my eyes will shine." Of course, this "cleaner" is by no means a "cleaner" in the general sense.
Activate the market
Energy conservation and environmental protection has been a hot topic in the past year. What changes have you seen in this industry?
Wang Xiaokang: From March last year to March this year, the State Council and various ministries and commissions of the State Council issued various policies and measures including energy conservation, emission reduction and environmental protection, including more than 200 standards. This is an unprecedented strength. It shows the importance the government attaches to the energy conservation and environmental protection industry. And all the relevant policies are more grounded. In the past, I always had opinions on the policy. I feel that even if it is formulated, the implementation will be very weak. Law-abiers pay a higher cost, and offenders are not sanctioned. However, since last year, law enforcement has been greatly enhanced. For example, from the new Environmental Protection Law, which was implemented on January 1, 2015, the fines are not capped and calculated on a daily basis.
In this year's government work report, it is proposed to reduce the energy consumption target to 3.1% in 2015. What do you think means?
Wang Xiaokang: I have converted it. To accomplish this goal, we need to reduce the direct utilization of coal by 127 million tons throughout the year. This is a huge figure, more than the annual consumption of many developed countries. Therefore, there are many measures to be taken to achieve this goal. For example, cities need to greatly reduce coal-fired boilers and increase other energy sources. Where can other sources of energy come from? This is a structural problem of the industry and requires a lot of technical and financial support. However, for the energy conservation and environmental protection industry, it is a major positive. Because the total amount of energy savings has increased, it means that our market business has increased.
You have suggested that the relevant departments reduce the export tax rebate policy. What is the original intention of the proposal?
Wang Xiaokang: In the past few years, overcapacity in the photovoltaic industry and manufacturing industry was caused by many factors. One of the important drivers is an export tax rebate policy. This kind of subsidy method originally encouraged the development of the industry, but it also affected the market competition, so that some enterprises that do not have advanced technology and strength can use this policy to quickly achieve a certain scale. When the subsidies are gone, these enterprises will soon lose. Competitiveness. I think it is time to go to the regulation.
Can the development of the energy conservation and environmental protection industry be accelerated by improving the system?
Wang Xiaokang: The first is system construction, and of course, more stringent supervision. For example, to promote third-party specialized companies to control pollution. China's energy-saving and environmental protection market is very large, but it has not formed a relatively unified and open market, nor has it reached a relatively transparent and fair market competition.
Taking the environmental protection industry as an example, the environmental protection industry is now concentrated below the local market. They close the environmental protection industry and treat it as an asset. Some large companies also do the same and do not open to the outside world. So relatively speaking, the environmental protection industry has not really opened up. We often miss some inexplicable companies. According to the truth, the market should allocate resources to the best companies. But this is not the case. Therefore, I suggest that the state should cultivate the market and truly implement market supervision, truly activate the market, and establish a market environment that is unified, fair and transparent, and allows enterprises to compete in an orderly manner. If there is no transparency, the policy is no better, the standards are stricter, the institutions are bigger, and the energy conservation and environmental protection issues will never be solved.
Real direction
Regarding distributed energy is currently a hot discussion, do you think distributed energy can change China's energy structure?
Wang Xiaokang: Of course, and this is the real direction of development. Eight years ago, I just started to call for energy savings shortly after I arrived. That year, I went to Washington to inspect and had a chance to communicate with an international distributed energy alliance. After that, they took me to a small city in Austria for an inspection. There are only 1,500 households there. The cattle industry in the whole city is very developed. They use the waste residue to extract ethanol as fuel. After all the cow dung is concentrated, it produces biogas, cooks with biogas, and builds a small Power plant. There is no need to spend money on electricity used by households there. Because it is a cooperative mechanism, every family still has dividends every year. This is a typical distributed energy application. I was shocked at the time. After returning home, I began to call for the promotion of distributed energy. However, in the current situation of China, there are still many limitations and difficulties that cannot be solved.
In the most ideal situation, what kind of benefits will distributed energy bring to China?
Wang Xiaokang: Distributed energy has the highest energy efficiency, the lowest pollution coefficient, and the safest at the same time. If a country realizes distributed energy, it does not have to rely on any external energy. For example, international coal price increases and oil price increases will not be affected.
The waste incineration power plant and the PX chemical project have been controversial. What do you think of this?
Wang Xiaokang: I once criticized several journalists at an internal symposium. I said: "You have a report on waste-to-energy, which seriously misleads the public and has inadvertently become the mouthpiece of some interest groups." Some of their reports have dealt a heavy blow to the nation's waste-to-energy processing business. Many local governments are afraid to do it. But they don't know the status of garbage in China. China is a country with high-speed urbanization. The growth rate of waste discharge is fast and the total amount is not available in the world.
However, there are two types of waste disposal methods, one is landfill and the other is incineration. Landfill is not sustainable. Because the land is too scarce, and landfills can cause very serious land and water pollution, these two pollutions are much more difficult to treat than haze and cost more. Even the consequences of pollution are now unrecognizable and harmful to future generations. However, public opinion has repeatedly misled the people and hindered the development of the waste-to-energy industry.
More inclined to hold
How do you predict the industry trends in this year's energy saving and environmental protection industry?
Wang Xiaokang: It should be an upward trend, but to what extent, I am not sure. Some energy conservation and environmental protection are judged separately. The development level of energy-saving industries depends on their related industries, and the environmental protection industry depends on the support of the government or enterprises. But both areas require the understanding, participation, and support of the people, and they also need the correct media guidance from the media. Only the government, enterprises, the media, the people, these four interests have really acted, the national energy conservation and environmental protection governance has hope, and our industry will have a more future.
In 2015, what are the economic growth points of China Energy Conservation and Environmental Protection Group?
Wang Xiaokang: Our business is divided into several major blocks. The first is environmental protection. Environmental protection is subdivided into municipal solid waste treatment, including domestic garbage, hazardous waste, and disposal of waste materials. There is also urban sewage treatment, including urban water supply; the second is energy-saving service business, divided into three market segments: industrial energy conservation, building energy conservation and green building; third is clean energy business; fourth is resource comprehensive utilization business . For these businesses, this year we will increase the research and development of technology and capital investment to obtain more resources and markets. Take waste-to-energy plants as an example. I hope to build at least 50 waste-to-energy plants by the end of this year. .
How do you see the rise of environmental protection concept stocks?
Wang Xiaokang: I saw the stock price of the monopoly industry and the financial industry rising all day long. I just want the environmental protection industry to be able to rise so hard. Now I finally see that our stock price is also rising, I am really happy. Some time ago, there was a company with energy conservation and environmental protection that had a daily limit of more than 20 days. But calm down, I still don't want the stock price to skyrocket. I think the stock price rises healthily and steadily is the best state of enterprise development.
Regarding the reform of state-owned enterprises, what plans are there for energy conservation?
Wang Xiaokang: There are many mixed-ownership enterprises under China Energy Conservation, and most of them are companies that we control. Now that the market system and supervision are not complete, and the special nature of the system, we are more inclined to control. We have always believed that the initiative is safer in our hands. China Energy Conservation is already the largest company in the field of energy conservation and environmental protection, so we are considering more than expansion, but the quality and safety of assets. As far as I am concerned, strictly speaking, the state gives the enterprise to me. I am only a trustee and not a representative in the true sense. I am responsible for state assets.
Will China's energy-saving future expand its investment strategy for overseas markets?
Wang Xiaokang: At present, the income from overseas business accounts for less than 10% of our total revenue. We have done a lot of infrastructure in overseas countries, such as building sewage treatment plants and desalination plants. Waste power generation is also being deployed in several countries. Next, we hope that after helping them build a waste power plant, the operation can also be handed over to us. In the future, I think overseas business can account for one-third of the Group's total business, which is ideal.
What kind of investment do you think has potential in the future in the field of energy conservation and environmental protection?
Wang Xiaokang: Clean energy. We have a population of 1.3 billion in China. According to developed countries, in the past 20 years, China’s garbage has exceeded 1 billion tons of emissions, and there is no such big market in the world.
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