Regulating the Market to Promote the Healthy Development of the Environmental Protection Industry

During an interview with People’s Daily Online at the National People's Congress (NPC), Liu Huaiping—NPC deputy and President of Anhui Kedali Energy—pointed out that the current pricing, taxation, and financial policy mechanisms for the environmental protection industry remain underdeveloped. In addition, the market lacks standardized order, which continues to constrain the industry's growth.

According to Liu, the environmental protection industry is an emerging sector. One of the foremost challenges it faces is widespread irregularities in project bidding. The industry has seen issues such as bidding at unreasonably low prices, fraudulent bidding practices, and contract breaches after winning bids.

Liu called on relevant state departments to further regulate market order and take firm action against companies that violate rules and laws. He advocated for the establishment of a blacklist system to ensure that non-compliant companies are excluded from market participation. At the same time, Liu emphasized the need to provide a supportive environment for companies that prioritize technological innovation, product quality, and deliver reliable solutions for energy conservation and emissions reduction.

He further noted that private environmental protection enterprises face significant challenges in financing, including high interest rates and short loan terms from the banking system. These financing conditions are incompatible with the industry's characteristics of low returns and long project cycles. Moreover, assets held by environmental companies often take the form of allocated land, utility pump stations without property ownership certificates, equipment rooms, machinery, and pipeline networks—forms of collateral that generally do not meet banks’ mortgage requirements.

Liu expressed hope that the government will provide targeted and differentiated support to the emerging environmental protection industry through the promotion of green finance, issuance of green bonds, and innovation of traditional financial products. Such measures, he believes, will help accelerate the industry’s healthy and sustainable development.

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