World Energy Outlook 2007: China and India Insights. International Energy Agency (IEA).

Environmental infrastructure development for Yunnan Urban Environment Project in China

This study presents a synthesis of 17 country studies on environmental goods and services (EG&S)
commissioned by the OECD, UNCTAD and the UNDP. The countries examined are Brazil, Chile, China,
Cuba, the Czech Republic, the Dominican Republic, Guatemala, Honduras, Israel, Kenya, Korea, Mexico,
Nicaragua, Pakistan, Panama, Thailand and Vietnam. Its aim is to identify determinants of demand for
EG&S; to show common themes and experiences in the EG&S markets of different countries; and to draw
attention to key trade, environment and development policy linkages.

Like most developing countries, China is putting the lion’s share of its environmental investment in water and wastewater treatment. China's wastewater treatment market is large and expanding rapidly. Furthermore, the Chinese government has set the goal to establish an advanced environmental monitoring forecast system during the 11th Five-Year Plan period. Tremendous business opportunities are emerging.

In concert with increasing national infrastructure, China has issued laws, regulations and standards on wastewater online monitoring. Chinese lawmakers are suggesting more severe punishment for enterprises that excessively discharge water pollutants. Such fines are to be assessed according to the amount of monitored pollutant discharge. The operation of the online monitoring equipment is also subject to regular supervision.
In 2008, the Chinese government issued the “The 11th National Plan on Environmental

Monitoring and Supervision” in order to establish an overall automatic air quality monitoring system for all the cities, an overall automatic monitoring system for the major rivers and basin, and an automatic system on desert storm and acid settlement and offshore sea areas.

China’s rapid economic growth and urbanization have resulted in major pollution issues within its towns and cities. Pollution problems are more severe in large cities of Sichuan that have undergone largescale industrial development to implement China’s western development strategy. Under pressure to build Sichuan into an ecologically minded province while at the same time fostering its economy, the Sichuan provincial government is making great efforts to build adequate infrastructure and strengthen environmental law enforcement. In the next five years, the local government will significantly increase capital expenditures in the area of solid and medical waste treatment, which should create many business opportunities for American environmental firms.