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Suggestion on Third-party Governance of Environmental Pollution

Release time: 2017-08-22 Content source:wu

In January 2015, the State Council issued "Suggestion on Third-party Governance of Environmental Pollution" and promoted the third-party governance model of environmental pollution in industry and other fields. However, the model has been promoted at a relatively slow pace for more than two years. Recently, Ministry of Environmental Protection issues implementation suggestion on promoting environmental pollution by third-party governance, explores new mechanisms, and is expected to achieve a rapid breakthrough.


Recently, Ministry of Environmental Protection issues implementation suggestion on promoting environmental pollution by third-party governance, requires to take the "Marketization, Specialization and Industrialization" as the guidance of environmental pollution control, promotes the establishment of a new combined pollution control mechanism with  polluter to pay, third party governance and pollutant discharge permit system, explores the implementation limit of the third party governance and supports the third party governance units to participate in pollution right trade.


Suggestion puts forward to formulate and improve green finance, project reservation base, typical case catalogue of third party governance and other policy measures on the basis of adhering to the market-oriented operation, to guide and support the third party governance, to carry out pilot demonstrations, and to timely promote mature experience and practices.


At the same time, explore the implementation limit of third-party governance. Implement limited third-party governance in Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta and other key pilot regions. For pollutant discharging units whose pollutants exceed the emission standards or total control requirements, or the environmental protection authorities order to limit production, shut down production for treatment but they refuse to control pollution, the Environmental Protection Department can carry on penalties in accordance with the law, and also can urge the implementation of third-party governance in due time.


Suggestion clearly defines to cultivate the new pattern of enterprise pollution management, actively promotes the resource-oriented disposal mode, and explores the benefit-sharing environment performance contract service model. Third-party governance units are encouraged to provide comprehensive environmental services including environmental pollution problems diagnosis, pollution control program compilation, pollutant emission monitoring, environmental pollution control facilities, operation and maintenance activities.


To take the industrial park and other industrial agglomeration areas as a breakthrough, encourage the introduction of third-party governance units to formulate integrated centralized governance of enterprise sewage, solid waste and so on. To take paper making, building materials and other 15 high polluting industries as entry point identified by "Thirteen-Five" Eco-environmental Protection Planning, encourage the introduction of third-party governance units to carry out specialized pollution management and practice third-party governance in various forms.


In addition, suggestion puts forward to support third-party governance units involving in emissions right trade. Establish and complete the system of paying for the use and trading for emission right, actively improve the trial of emission right trade, and create profit space for third party governance units through the market regulation of benefits of different economic entities. The reduced pollutant emission capacity achieved by third-party governance is taken into sewage rights account of sewage emission units as the transaction of emission rights revenue main body.


In January 2015, the State Council issued the "Suggestion on Third-party Governance of Environmental Pollution", and promoted the third-party governance model of environmental pollution in industry and other fields in hope of solving pollutants excessive emission problem. However, the model has been promoted at a relatively slow pace for more than two years.


Suez Asia Executive Vice President Sun Minghua previously accepted the Chinese securities news reporters and expressed that the third-party governance did not formulate a large scale, an important reason lied in the owners attached more importantance to capital source but third-party governance aimed to solve technical and management problems, so the promotion speed was relatively slow.


She believed that fee-charging mechanism and market-oriented operation mode of third-party governance were still to be perfected. For environmental third-party governance projects, due to large amount and long period of investment, enterprises had to bear great financial risks. From the current situation, many of the third-party governance projects did not have a clear payment mechanism and funding source at the beginning of the project; although some projects were already clarified, it was difficult to implement financially, leading companies hesitate to participate.


The implementation suggestion issued by The Ministry of Environmental Protection also clearly proposes to strengthen policy support and guidance including encouraging green financial innovation, actively carrying out pilot demonstrations and the establishment of typical case catalogue by third-party governance.


Suggestion encourages to establish local green development fund and to actively introduce social capital for providing financing support for third-party governance projects. Explore the introduction of a third-party payment mechanism according to environmental performance for payment and ensure the rights of sewage units and third-party governance units. Select potential projects from Air, Water, and Soil Pollution Prevention action Plan, establish pilot project reservation base of third-party governance for environmental pollution, and list into the relevant pollution prevention and control of special funds support.