The National Eleventh Five-Year Plan for Environmental Protection (2006-2010) specifies for the first time in a five-year plan that China will create a group of powerful companies  and conglomerates with their own brands, core technology, high market shares and more job opportunities, aiming at making environment protection industry a new pillar industry of national economy in the five years.

During the period of the 11th Five Year Plan (2006-2010), China's total investment in environment protection will reach CNY1.4 trillion, two times the figure posted in 2001-2005, accounting for 1.5% of GDP in the period. Among the total, investment in urban environment infrastructure will be about CNY660 billion, investment in treatment of industrial pollution CNY210 billion, investment in new environment protection projects CNY350 billion and investment in ecological environment protection CNY115 billion.

Policy Goals of Energy Saving & Environment Protection in the 11th Five-year Plan

Note: major pollutants herein refer to sulfur dioxide and chemical oxygen demand

Source: State Environmental Protection Administration

In recent years, the total investment in environment protection has increased continuously and the policy on energy-saving and emission reduction has provided a huge market demand for China's environment protection industry. The newly amended Energy Conservation Law not only offers great policy support to environment protection industry, but also provides some preferential treatment in financial policies, including credit policy, which enables environment protection industry enjoy unique advantages. During the period 2006-2010, China's environment protection industry is expected to have an average annual growth rate of 15%-17% and its total annual revenue will reach CNY880 billion to one trillion in 2010.

2. Policy Environment of Environment Protection Industry
2.1 An important target during the 11th Five-Year Plan (2006-2010) 
2.2 Investment and economic policy during the 11th Five -Year Plan period
2.3 Influence of state industry policy on listed companies 

3.Key Factors for China Environment Protection Industry Development
3.1 Unbalanced water ecology and serious damaged water environment 
3.2 Deterioration of air quality in China's cities
3.3 China's cities surrounded by garbage
3.4  Backward environment protection infrastructure in some cities 

4.China Environment Protection Industry's Institutions 
4.1 Industry structure
4.1.1 Monopoly and competition 
4.1.2 Low entry barrier but high exit barrier 
4.1.3 Low diversity of environment protection products 
4.2 Market behavior of environment protection industry 
4.2.1 Products innovation 
4.2.2 Development and innovation of technology
4.2.3 Advertising and price setting 
4.2.4 Inequitable conduct
4.3 Market performance
4.3.1 Efficiency of resource arrangement
4.3.2 Profit ratio
4.3.3 Technical efficiency of institutions

5. Segment Markets of China Environment Protection Industry
5.1 Sewerage discharge market 
5.1.1 General situation 
5.1.2 Investment  
5.1.3 Development goal by the 11th Five-Year plan 
5.2 Solid waste disposal market
5.2.1 Disposal flow
5.2.2 Status quo 
5.2.3 Development trend 
5.3 Desulphurization market 
5.3.1 Status quo
5.3.2 Comparison between desulfurization industry and solid waste industry
5.3.3 Prospect 

6.Key Listed Companies
6.1 Eguard Resources Development Co., Ltd. 
6.1.1 Profile 
6.1.2 Main businesses 
6.1.2.1 Solid waste disposal 
6.1.2.2  Investment and operation of waterworks project
6.1.3 Investment direction of fund-rising project
6.2 Shanghai Municipal Raw Water Co., Ltd. 
6.2.1 Profile  
6.2.2 Main businesses 
6.2.3 Investment direction of fund-rising project 
6.3 Wuhan Kaidi Electric Environmental Protection Co., Ltd. 
6.3.1 Profile  
6.3.2 Main businesses 
6.3.3 Investment direction 
6.4 Fujian Longking Environmental Protection Co., Ltd 
6.4.1 Profile 
6.4.2 Main businesses 
6.4.2.1 Electric precipitation 
6.4.2.2 Desulphurization 
6.5 Zhejiang Feida Environmental Science & Technology Co., Ltd. 
6.5.1 Profile 
6.5.2 Main businesses 
6.6 Tianjin Capital Environmental Protection Co., Ltd. 
6.6.1 Profile 
6.6.2 Main businesses 
6.6.2.1 Sewerage disposal 
6.6.2.2 Reclaimed water 

7.Conclusion