Environmental protection engineering refers to engineering projects to deal with environmental pollution caused by industrial production. Environmental protection services are services and trade activities to protect the environment. It is an important part of modern service industry.
They can be done in two fields. One is the industry, with complicated techniques and fragmented entities. The other is municipal administration, mainly focused on sewage disposal and waste disposal. Projects are carried out in the forms of PPP and franchise with a high concentration rate. Environmental protection in municipal administration requires large amounts of capital and long time with small but stable returns. Therefore, it typically results in capital accumulation and stable returns.
It is estimated that in 2016, total income of the environmental protection engineering and service industry exceeded CNY 1 trillion. Major sources of income were water pollution control, dangerous waste and environmental protection monitoring.
Pollution in China has worsened in recent years. To improve the environment, the Chinese government issued Action Plan for Air Pollution Prevention and Control, Action Plan for Water Pollution Prevention and Control and Action Plan for Soil Pollution Prevention and Control. Meanwhile, the government also began to purchase environmental protection services and promote PPP projects to support the environmental protection service industry.