The Chinese government is increasing the efforts in environmental protection. This also includes the enlargement of so-called pollutant discharge licenses, which will likely have a negative effect on several Chinese industries, including Chinese sweetener producers. The measurements come into action because the quality of air and water in many regions have not achieved the standard value for a long time.
The main idea of controlling the pollutant discharge are discharged licenses, that requires mainly manufacturers with pollutant emission to be licensed until 2020. The goal of the licenses is to reduce and cut pollution, which will help to achieve the standard value of quality for many regions again.
Although a pollutant discharge licensing system was in action before, it turned out as not very effective, due to an impractical placing of responsibility on organisations and the lack of appropriate supervision by the environmental protection departments, according to CCM.
The new system is supposed to clear out past vagueness and will be supervised more strictly. CCM has listed the key measures from the proposal of November 21, 2016.
First of all, the system changes from an administrative area pollutant discharge system to a certain organisation affecting one. The applications for licensing should be done before the actual project construction, which serves as a reference for the planned regular environmental checks. It also allows authorities to monitor pollution in advance.
The management of the licensing management requires a catalogue, created by the environmental protection departments, about the pollutant discharge. This will be accordingly changed to the different type of industries and their impact on the environment. The Organisations can then apply for the license by stating their pollution variety, amounts, and concentration.
The governmental departments are requested to do inspections more frequently, according to the pollution emission of companies, and get the rights to punish blunder with production limitation, suspension, and shutdown. On the other side, the licensing system encourages organisations to give themselves stricter pollution limits, which can be regarded by preferential electricity prices and governmental preference.
This newly implemented license will be the only permission for organisations to emit any pollution. Every other method will be illegal. The licenses will be granted for three years in the first place and five more years after every renewal.
The proposal also states the implementation of an information platform, where the license applications, verifications, and supervision will be concentrated and be public visible.
The licensing system has already been implemented for the thermal power stations and paper producing industry in China, with more industries to follow soon.
According to CCM, the sweetener industry may be impacted, too, looking at high pollution manufacturers especially in the high-intensity sweetener business. These include for example the production of sucralose, which pollution is unable to be easily biologically degraded.
Looking at the small enterprises, who cannot afford the treatment equipment necessary for the license and bigger manufacturers with their production likely being reduced, the whole output of the sweetener industry in China may decrease the next years notably.
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets.
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