In 2016, Chinese authorities began sending central government inspection teams to different parts of the country to investigate pollution. After three rounds of inspections that have included all provinces, enforcement is becoming increasingly stringent, says one expert who believes the changed conditions open up new opportunities for investment.
In an opinion piece for financial news site Caixin.com, UBS Securities China chief analyst Gao Ting predicts a green energy boom. The environmental protection sector, which includes solutions and equipment providers as well as monitoring experts, will likely benefit from this tightening of environmental regulation and from levying environment taxes, Gao said.
Many backward, highly polluting companies have been shut down in the past year, making space for those with environmentally-friendly technologies. This will also benefit leading enterprises able to pivot to green manufacturing and reduce their environmental costs, who will increase their market share, the analyst said. Staff at such companies will also likely see their wages grow, with flow on effects in consumption rates and the services sector, he added.
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