China’s State Council issued a plan earlier this month to improve environmental protection and energy conservation. The plan prioritizes environmental protection as a “pillar industry” that will receive subsidies and tax breaks. The plan aims to advance environmental protection, which includes developing equipment, instruments and technologies for environmental monitoring and the treatment of water, solid waste and soil; and energy conservation, which includes developing environmentally and energy conscious vehicles, boilers, and electric motors, and technologies for regenerative combustion and semiconductor lighting. In line with a 2012 industrial development strategy, the plan aims for environmental protection industries to grow at a compound annual growth rate of 15% to CNY 4.5 trillion ($729.7 billion) by 2015. The plan also seeks to raise the market share of energy efficient products by at least 50% and increase urban sewage treatment capacity by 200 million cubic meters.

Source: China Water Risk