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WASTE-TO-ENERGY IN CHINA

EMERGENCE
advisors Elizabeth Balkan
EMERGENCE
advisors WASTE IN CHINA: FACTS

Volume MSW Generation


250

200

China
Million Tonnes

150
US
100 Japan
Mexico
50

0
1990 1995 2000 2005 2009*
Source: OECD *Estimated
EMERGENCE
advisors WASTE IN CHINA: FACTS

Glass
2%
Metal
2%

Dust / Other
Ash 10%
5%
Composition of
Paper
Organic
Waste Solid Waste in
16% 49%
China’s Urban Areas
Plastics
16%

Source: World Bank, Tsinghua University


EMERGENCE
advisors WASTE IN CHINA: FACTS

MSW Treatment by Type in China, 2001-06


100

80
m tonnes

60 Composting

40
Incineration
Landfilling
20

0
2001 2002 2003 2004 2005 2006

Source: Guangzhou Academy of Science


EMERGENCE
advisors WASTE IN CHINA: FACTS

Policy Reasons for Incineration in China:


• Implementation of Renewable Energy Policy
• Limited Land Resources
• Changing MSW Composition

Central Government Targets


• By 2030, 30% of managed waste should be treated using
WtE and thermal recycling
• By 2020, China should have 30 GW biomass, with WtE
comprising 4 GW
EMERGENCE
advisors WASTE IN CHINA: FACTS

Establishing a Municipal-Level MSW Framework

• “Law on Prevention and Control of Environmental


Pollution Caused by Solid Waste of PRC” (2005)
《中华人民共和国固体废物污染环境防治法》

• “Regulations Regarding Municipal Solid Waste”


(2007)
《城市生活垃圾管理办法》
EMERGENCE
advisors WASTE IN CHINA: FACTS

Promoting Private Sector MSW Treatment

• “Comments on Promoting the Industrialization of


Municipal Waste” (2002)
《关于推进城市排水处理, 垃圾处理产业发展的意见》
EMERGENCE
advisors WASTE IN CHINA: CHALLENGES

• Information / Data

• Technological

• Regulatory / Policy

• Market
EMERGENCE
advisors WASTE IN CHINA: CHALLENGES

• VAT • Guaranteed • Prioritized


refunding subsidized commercial
price for bank loans
• Corporate electricity
income tax • State subsidy
exemptions for loan
interest
Tax
Subsidies Loans
Benefits
EMERGENCE
advisors WASTE IN CHINA: LOOKING AHEAD

• Increased Public Awareness / Enhanced


Enforcement
• Sector Consolidation
• Improved MSW Planning
• Regulatory Clarity & Reform
EMERGENCE
advisors WASTE IN CHINA: LOOKING AHEAD

In the US, Congress and EPA drastically


reduced the allowable incineration emissions
in the 1990s.

Result: By 2005, mercury emissions declined


96%, and dioxin emissions declined 99%
THANKS!
EMERGENCE elizabeth@emergenceadvisors.com
advisors