Recently, the Ministry of Ecology and Environment has issued the Work Plan for Water Pollution Remediation in Industrial Parks in Provinces (Regions) along the Yellow River, clarifying the work scope, work objectives, main tasks, and guarantee measures for water pollution remediation in industrial parks in provinces (regions) along the Yellow River. Through the implementation of the remediation, by the end of 2024, the centralized sewage treatment facilities in chemical parks and national-level industrial parks in provinces (regions) along the Yellow River will operate up to standard, and the quality of sewage pipelines and the efficiency of sewage collection will be significantly improved. By the end of 2025, other various types of parks will basically achieve the above goals.

The issuance of this document will successively unleash the water pollution treatment market for industrial parks in the nine provinces (regions) along the Yellow River.

The water pollution problem in industrial parks has always been a hot issue. News of illegal discharges and direct discharges of industrial wastewater frequently appears in industry news reports.

The Ministry of Ecology and Environment and various environmental protection supervision teams have also been paying close attention to the water pollution treatment problem in industrial parks for many years. Recently, the Work Plan for Water Pollution Remediation in Industrial Parks in Provinces (Regions) along the Yellow River (hereinafter referred to as the Work Plan) issued by the Ministry of Ecology and Environment aims to further promote the water pollution remediation work in industrial parks in provinces (regions) along the Yellow River.

For now, what opportunities will the release of the Work Plan bring to the water pollution treatment market for industrial parks? And where are these opportunities distributed?

01 The water pollution problem in industrial parks has been concerned for many years

1. Frequent occurrence of water pollution treatment problems in industrial parks

For many years, the water pollution treatment in industrial parks has been closely concerned by the media and relevant departments.

As early as in the first batch of typical cases of the fourth batch of the second round of central ecological and environmental protection inspections announced by the Ministry of Ecology and Environment, problems in industrial wastewater treatment occurred frequently.

Among them, local residents reported severe pollution from a non-ferrous metal smelting plant owned by a large conglomerate. Although the local government and relevant authorities issued seven written notices or held meetings urging rectification, the company only implemented temporary "fixes" such as adding iron powder and hydrogen peroxide to sedimentation tanks. These measures failed to address root causes like non-compliant facility construction and aging, damaged rain and sewage pipelines.

In one case, a paper mill in Yunnan Province was found to be illegally discharging wastewater containing pollutants—including colority, suspended solids, chemical oxygen demand (COD), ammonia nitrogen, total nitrogen, and total phosphorus—all exceeding regulatory limits. Notably, the suspended solids surpassed the national emission standard by 864 times, while COD exceeded the local standard by 654 times.

In June 2022, the Yongjia Public Security Micro reported a case where a hidden water pipe was installed in a sewage tank, revealing collusion between a wastewater treatment plant and a third-party company to illegally discharge over 2,000 tons of industrial wastewater.

Cases of industrial wastewater being illegally discharged directly, mixed with other streams, or fraudulently handled through collusion with third-party companies are too numerous to count.

2. Successive introduction of policies to guide the gradual release of the industrial wastewater treatment market

In response to this situation, relevant departments have also successively issued various policies for industrial wastewater treatment, guiding the industrial wastewater treatment market to be more standardized, scientific, and rational.

For example, in 2019, the Ministry of Housing and Urban-Rural Development, the Ministry of Ecology and Environment, and the National Development and Reform Commission proposed in the Three-Year Action Plan for Urban Sewage Treatment Quality Improvement and Efficiency Enhancement (2019-2021) that industrial clusters should build centralized sewage treatment facilities, and industrial enterprises that may jeopardize the stable compliance of treated effluent from urban wastewater treatment plants must phase out operations within a stipulated timeframe.

In March 2022, the General Office of the State Council issued the Implementation Opinions on Strengthening the Supervision and Management of In-river and In-sea Discharge Outlets, which explicitly called for intensifying efforts to remediate water pollution in industrial parks along the Yangtze River Economic Belt and launching a comprehensive special campaign to address water pollution in industrial parks across provinces (regions) along the Yellow River.

On July 27, Minister of Ecology and Environment Huang Runqiu reiterated at a press conference held by the State Council Information Office that efforts will be made to consolidate and improve water quality, intensify the remediation of water pollution in industrial parks along the Yangtze River Economic Belt, and fully launch a special campaign to address water pollution in industrial parks across provinces (regions) along the Yellow River.

The newly issued Work Plan for Water Pollution Remediation in Industrial Parks in Provinces (Regions) along the Yellow River by the Ministry of Ecology and Environment marks the official launch of water pollution control efforts for industrial parks across Yellow River basin jurisdictions.

02 The battle for water pollution treatment in industrial parks in nine provinces (regions) along the Yellow River has been launched. What markets will be released?

Whether there is a market for industrial wastewater treatment, the answer is yes.

Xue Tao, the Executive Partner of the E20 Environment Platform, the Executive Dean of the Research Institute, an Adjunct Professor at Hunan University, and a Guest Professor at North China University of Water Resources and Electric Power, pointed out at the "21st Water Sector Strategic Forum 2023" that "The To G business is huge in scale, with a decline in yield and a bottleneck in growth. To B business offers vast potential, yet the market is fragmented with complex transaction interfaces. As 'large ships struggle to turn', municipal water companies are increasingly exploring the way for industrial water treatment."

Leading enterprises rely on their keen market sense to develop business in the field of industrial wastewater.

So what market opportunities will the Work Plan for Water Pollution Remediation in Industrial Parks in Provinces (Regions) along the Yellow River, issued by the Ministry of Ecology and Environment, unlock?

The Work Plan clarifies the work scope, work objectives, main tasks, and guarantee measures for water pollution remediation in industrial parks in provinces (regions) along the Yellow River. Through the implementation of the remediation, by the end of 2024, the centralized sewage treatment facilities in chemical parks and national-level industrial parks in provinces (regions) along the Yellow River will operate up to standard, and the quality of sewage pipelines and the efficiency of sewage collection will be significantly improved. By the end of 2025, other various types of parks will basically achieve the above goals.

Further, from the requirements of the Work Plan:

First, establish a problem list. It requires to conduct a comprehensive investigation to identify problems in aspects such as sewage collection in parks, construction and operation of centralized sewage treatment facilities, park environmental management, and collection and treatment of initial rainwater in chemical parks, to establish a problem list accordingly.

Second, carry out rectification and clearance. Problematic industrial parks must formulate actionable remediation plans under the "one-park-one-policy" approach, specifying tasks and deadlines. Completed tasks shall be cleared in time, while long-term challenges shall be addressed in phases.

Third, implement dynamic management. In case of park merger, upgrading, establishment or cancellation, or phased progress in rectification work, relevant information shall be updated in a timely manner through the information system. The Ministry of Ecology and Environment will intensify supervision and inspection through initiatives like the Pollution Prevention and Control Campaign, providing guidance and support to key industrial parks, verifying progress, and incorporating identified major issues into the scope of central ecological and environmental protection inspections as well as on-site investigations for ecological and environmental warning documentaries in the Yellow River Basin.

Fourth, build benchmarks. Focusing on provincial and above industrial parks and parks in major water-related industries such as chemical, electroplating, papermaking, printing and dyeing, and food industries, efforts shall made to promote the classified treatment of initial rainwater, industrial wastewater, and domestic sewage; strengthen the construction of comprehensive toxicity control capabilities for industrial wastewater and the standardized construction of river inlet sewage outlets; implement the measures of "one enterprise, one pipe, open-pipe transportation, and real-time monitoring" for sewage from chemical enterprises to effectively prevent and control environmental risks. Provincial ecological environment departments shall strengthen guidance, explore effective industrial park management models, recommend excellent cases, and enhance publicity and promotion.

From the perspective of policy content, the market regions and opportunities released by the Work Plan are basically clear:

First, in terms of the scope specified in the Work Plan, industrial parks in provinces (regions) along the Yellow River include nine provinces (regions) along the Yellow River, namely Qinghai, Sichuan, Gansu, Ningxia, Inner Mongolia, Shaanxi, Shanxi, Henan, and Shandong.

Second, priority will be given to provincial and above industrial parks and parks in major water-related industries such as chemical, electroplating, papermaking, printing and dyeing, and food. Enterprises with industrial wastewater treatment technologies can focus on parks in the above-mentioned industries.

Third, the Work Plan states that a comprehensive investigation will be conducted on sewage collection in parks, construction and operation of centralized sewage treatment facilities, park environmental management, and collection and treatment of initial rainwater in chemical parks. This means that projects for laying and transforming industrial park wastewater pipelines will also usher in a small market upsurge.

While the industrial park wastewater treatment market presents new opportunities, these will only be captured by those who are prepared. Enterprises equipped with diversified industrial wastewater treatment technologies will be best positioned to capitalize on the market potential emerging across these provinces (regions).

Source: China Water Network