Fly ash utilization in China

Report
Fly Ash Utilization in China
Market Landscape and Policy Analysis
Asian Coal Ash Association
Introduction
 12 years in Asia (Japan, China)
 Energy, green technology and water industries.
 5 years specifically focused on coal combustion products
 Founded Coal Ash Solutions - www.coalashsolutions.com
 Assist early stage and established companies to:
» Safely scale and commercialize technology in new markets
» Raise capital
» Develop strategy and partnerships
 Asian Coal Ash Association – www.asiancoalash.org
 Co-founded in 2010, currently serve as chairman
 Events, research
 Coal Ash Asia 2014 (September 23-27th)
1. China fly ash utilization overview
2. Drivers of fly ash utilization and relevant policy development trends
3. Key stakeholders and engagement strategy suggestions
4. Summary analysis
China fly ash utilization overview:
government statistics
Production
Year
Utilisation
800
Fly ash output
(million tons)
Fly ash utilization
(million tons)
Utilization
ratio
2005
302
199
66
2006
352
232
66
2007
388
260
67
2008
395
265
67
2009
405
271
67
300
2010
417
280
67
200
2011
428
287
67
100
2012
440
294
67
700
600
500
400
0
2005 2006 2007 2008 2009 2010 2011 2012
•
In 2009, China’s installed thermal power capacity and the electricity generated by thermal power stations
both increased about 7-8%. Although coal consumption has been reduced by introducing high-efficient
generators, fly ash output has still maintained its rising momentum.
•
As fly ash volume steadily increases, the government’s 60% fly ash utilization regulation has always been
considered an impossible goal by some industry analysts; most recently in September 2010, Greenpeace
released a report which publicly criticized government statistics: “The biggest misconception is the belief
that 60% or more of China’s coal ash is reused—in reality it’s less than 30 percent” (a conclusion of
Greenpeace based on its independent eight-month survey of 14 thermal power stations across China).
China fly ash utilization overview:
a long history of fly ash utilization
1950s
1960-70s
1980s
China begins utilizing fly ash, mainly in the construction sector as concrete admixture,
and particularly in the construction of hydropower stations
China begins utilizing fly ash as walling material, including blocks, wallboard, baked
bricks, and ceramsite
The government starts rolling out a series of incentive policies for fly ash utilization in
various sectors such as building materials, construction, backfill, agriculture, etc.
1991
The State Development and Planning Commission1 releases the “China Fly Ash
Utilization Technology Policy and Implementation Roadmap”
1994
“Administrative Measures of Fly Ash Utilization” is released by State Economic and Trade
Commission2, Ministry of Electric Power Industry3, Ministry of Construction4, Ministry of
Finance, Ministry of Transportation, and State Administration of Taxation
1.
SDPC was the predecessor of the National Development and Reform Commission (NDRC)
2.
SETC was abolished during government restructuring in 2003, its fly ash related portfolio was transferred to
the NDRC and Ministry of Industry and Information Technology (MIIT)
3.
Ministry of Electric Power Industry was abolished in 1998, its portfolio is now shared by National Energy
Administration (NEA) under NDRC and MIIT.
4.
Predecessor of the Ministry of Housing and Urban-Rural Development (MOHURD)
China fly ash utilization overview:
a long history of fly ash utilization
2002
Government publishes the “Law on Promotion of Cleaner Production”
2003
Government publishes the “Regulation on Levy and Use of Pollutant Charges”
2004
Government publishes the “Law of Prevention and Control of Environmental Pollution by
Solid Waste”
2006
NDRC, Ministry of Finance, and State Administration of Taxation releases the
“Administrative Measures of the Recognition and Registration of Resources
Comprehensive Utilization Project Encouraged by the Central Government”
2007
NDRC releases the “Clean Production Performance Ranking and Indexes System of
Thermal Power Industry”
2008
Government publishes the “Law of Circular Economy Promotion.” NDRC starts preparing to
revise the 1994 version of “Administrative Measures of Fly Ash Utilization”
2010
NDRC, MOST (Ministry of Science and Technology), MOHURD, MIIT, MOLAR (Ministry of
Land and Resources) and MOFCOM (Ministry of Commerce) released the “Technical Policy
Outlines for Comprehensive Utilization of Resources in China”
China fly ash utilization overview:
current status – imbalanced utilization
•
The uneven growth of the various regions of
China creates an imbalanced fly ash
utilization rates.
•
In the developed coastal regions, especially
the Yangtze and Pearl River Delta, as well
as the Bohai Rim, the utilization ratio of fly
ash could be as high as above 100%: the
downstream players most likely compete to
secure a fly ash supply, import fly ash from
other regions, or use prior fly ash storage.
•
Meanwhile, in the underdeveloped middle
and western part of China, the fly ash
utilization ratio could be as low as 30% or
below, although, there might be fly ash
shortage as well in certain months because
of the nature of the building material and
cement business.
Beijing
Tianjin
Bohai Rim
Xian
Shanghai
Chengdu
Chongqing
Wuhan
Yangtze River
Delta
Guangzhou
Pearl River Delta
China fly ash utilization overview:
current status – main uses
Fly ash is currently used in China for:
•
•
Building materials: such as baked
brick and ceramsite, gas ash
concrete and cement admixture (or
blended material), etc.
Road engineering: such as roadbed
layer materials, side slope and
bituminous concrete admixture.
•
Construction projects: concrete and
mortar admixture.
•
Agribusiness: used as fertilizer or
used to improve soil quality
•
Backfill: engineering or mine
backfill.
•
Others: such as extraction of
Aluminum, etc.
Volume Segamentation
Others
5%
Backfill
15%
Building
materials
35%
Agribusiness
15%
Road
Engineering
20%
Construction
projects
10%
China fly ash utilization overview:
current status -- market players
Highly fragmented market participants landscape
Players scattered in different sectors ranging from equipment supply,
construction, engineering and operation / technical services sectors
Limited foreign
investment as well as
equipment and service
providers
Many domestic firms, research institutes,
equipment manufacturers, trading companies
affiliated with IPPs, etc.
JCOAL, LASCO, SchlossPfeiffer, MasaDorstener, CSIRO ….
China Ashtech Development Center, Xinyuandao,
Changsha Derby, Shanghai Huayu, Beijing Power
Coal Ash Industrial Co., Nanjing Xinyuantian,
CBMA/CNBM ….
China fly ash utilization overview:
current status – main challenges
① Imbalanced Utilization
③ Limited application fields and value added
•
Uneven development of fly ash
utilization in the coastal and inland
areas.
•
Fly ash utilization is still largely
concentrated in the building materials
and construction sector.
•
Uneven utilization ratio of various
grade of fly ash (short supply of high
quality fly ash and low utilization of low
grade ones).
•
The products are mainly low valueadded.
② Dynamic of fly ash quality
•
Mixed discharge equipment in power
stations (wet vs. dry).
•
④ Limited government incentives and weak
law enforcement
•
Increasing desulfurization and
denitration and its impact on fly ash
characteristics and quality.
“Administrative Measures of Fly Ash
Utilization” need to be updated and
revised
•
Taxation and financing incentives
need to be improved.
•
Biomass combustion
•
•
CFB boilers
Law enforcement needs to be
enhanced to control fly ash discharge
1. China fly ash utilization overview
2. Drivers of fly ash utilization and relevant policy development trends
3. Key stakeholders and engagement strategy suggestions
4. Summary analysis
Drivers of fly ash utilization:
economic growth will still rely on coal
 While the increases in China's population,
economy, and energy usage has prompted
the Chinese government to encourage the
development of other energy resources,
coal is still expected to play the most
significant role in the nation's energy
future.
Installed capacity in 2010
1.03%
2.01%
Hydro
Thermal
22.43%
Nuclear
74.49%
 Nearly 75% of China’s installed capacity in
2010 is from thermal power generators,
and an even further 81.81% of the
electricity generated in 2010 was from
thermal power plants.
 Although the government plans to reduce
thermal power generators to 69.1% in
China’s installed capacity mix within the
next 5 years, the actual total thermal power
capacity could further increase about 56%,
from 599GW to 933GW, according to the
national development plan.
Wind and other
renewable
Year
Installed
capacity
(GW)
Fly ash output
(million ton)
2006
622
352
2010
900
405
2015
(projection)
1,350
562.5
Drivers of fly ash utilization
Pull
Factor
Promotion of circular
economy and
comprehensive
utilization of resources
Due to the continuous
expansion of
infrastructure in China,
there is an increasing
market demand for fly
ash for construction
projects and building
materials
Rising prices of fly ash
in the market
Financial incentives
such as government
subsidies and tax
break policies
Push
Factor
Increasing fly ash
output
Cleaner production
policies and
regulations
Prevention and
control of
environmental
pollution due to solid
waste
Punishment for solid
waste discharge
The development of fly ash utilization
policies: policy frameworks
China’s regulatory framework creates numerous laws and regulations
to restrict solid waste discharge and promote a “circular economy”
National
People’s
Congress
State
Council
PRC
Constitution
Laws
State Council
Regulations
Ministries
Ministerial
Regulations and
Measures
Local
Authorities
Local Regulations
and Measures
Examples of regulations relevant to fly ash utilization
• Law on Promotion of Cleaner Production
• Circular Economy Promotion Law
• Law of Prevention and Control of Environmental Pollution from Solid Waste
• Decision of the State Council to establish a leading group for energy saving and emission
reductions
• 11th Five Year Plan (2006-2010) Guidance on Resources Comprehensive Utilization
• Regulation on Levy and Use of Pollutant Charges
• Administrative Measures of Fly Ash Utilization
• Technical Policy Outlines for Comprehensive Utilization of Resources in China
• Administrative Measures of the Recognition and Registration of Resources
Comprehensive Utilization Project Encouraged by the Central Government
• Shanghai municipal government's Management Regulation on Fly Ash Comprehensive
Utilization
The development of fly ash utilization
policies: related laws
Law on Promotion of Clean
Production (2002)
• Defines means of clean
production
• Sets forth incentives for
clean production in the
forms of tax cuts and
subsidies
Law of Prevention and
Control of Environmental
Pollution by Solid Waste
(2004)
Circular Economy Promotion
Law
(2008)
• Comprehensive revision
of the original
version(1996) by
introducing the “Producer
Responsibility System”
• Expands producer
responsibility, and calls
for the establishment of a
mandatory recycling
system
• Provides a legal framework
for developing the
economy, raising energy
efficiency, protecting the
environment and realizing
sustainable development
based on the 3R
(reduction, reuse and
recycle) principles
The development of fly ash utilization
policies: policies and regulations
Administrative Measures of Fly Ash Utilization









Released in 1994, and currently under revision by NDRC and MIIT.
New power station projects need fly ash utilization solutions in advance for approval; existing
power stations need to upgrade their systems for fly ash utilization.
Ban any new solid clay bricks and tiles projects near power stations, ask existing plants as
well as new construction projects to use fly ash as mixture.
Impose penalties on construction projects which could not meet the set target of fly ash
utilization.
Ask power stations to provide subsidies to large scale direct users of their raw ash; power
stations could only sell fly ash after processing it in line with national standards, and prices
should be in the buyers favor and based on actual processing cost and quality.
Ask power stations and end users to submit their statistics of fly ash discharge, utilization
and storage status to government agencies on a regular basis.
Call for incentive financial and taxation arrangement for fly ash utilization.
After the central government released the administrative measures of fly ash utilization, the
surrogates at the provincial and municipal level started to release their local regulations.
For example in Shanghai, the municipal government decided to levy a special R&D fee (0.4
RMB per ton of fly ash output) on power stations in order to support the research of fly ash
utilization in Shanghai.
The development of fly ash utilization
policies: policies and regulations
11th Five Year Plan (2006-2010) Guidance of
Resources Comprehensive Utilization





Released by NDRC in 2006
Set up a national target of fly ash utilization rate at 75% by 2010
Ask for financial incentives, tax breaks as well as technical policies for resources comprehensive
utilization
NDRC is currently drafting the 12th Five Year Plan (FYP 2011-2015) which might revise the target and
add more incentives
Meanwhile, MIIT is also drafting a specific 12th FYP for comprehensive utilization of industrial solid
waste
Clean Production Performance Ranking and Indexes
System for the Thermal Power Industry


Released by NDRC in 2007
Set up a matrix to manage the clean production practice of power plants and define the target and weight of
fly ash utilization in the system
 Fly Ash Utilization Rate Target: 100% (coastal region), 60% (central and western region)
 The weight of fly ash utilization rate in the matrix: 10% (other factors includes coal consumption,
emission, etc.)
The development of fly ash utilization
policies: policies and regulations
Regulation on Levy and Use of Pollutant Charges

Released in 2003 by NDRC and Environment Protection Authority

Defines a 30 RMB per ton of fly ash pollutant charge to levy on power stations who
could not meet the environment protection standards on fly ash handling and storage
Regulation on Levy and Use of Special Fund for
Promotion of New Walling Materials Application




Originally released in 2002, revised in 2007 by NDRC.
Defines a 10 RMB /m2 (might be different in various regions with 10 RMB as a cap) special fund for
promotion of new walling materials to levy on any new construction projects without application of new
walling materials.
Defines a catalog of new walling materials including all walling materials (bricks, tiles, and etc.) made
by fly ash (more than 30% raw materials are fly ash)
Defines the procedures to apply for financial support from the fund to develop and produce new
walling materials
The development of fly ash utilization
policies: policies and regulations
Administrative Measures on the Recognition and
Registration of Resources Comprehensive Utilization



Released in 2006 by NDRC and Ministry of Finance and State Administration of Taxation
Defines a recognition and registration procedure for resource comprehensive utilization
projects
A certificate secured after the recognition and registration procedure is a must for a tax
break and government financial support
Technical Policy Outlines for Resources
Comprehensive Utilization

Newly released in 2010 by NDRC, MOST, MIIT, MOHURD, MOLAR and MOFCOM

Defines all of the technology supported by government in the resources comprehensive
utilization sector including various kind of fly ash utilization technology

Summarizes the preferential taxation policy for the comprehensive utilization of
resources
The development of fly ash utilization
policies: policies and regulations
VAT exemption



Released in 2008 by Ministry of Finance and State Administration of Taxation
Specific building materials such as bricks, tiles, etc., made by fly ash (more than 30% of
raw material is fly ash) could enjoy VAT exemption, but the manufacturer needs to secure
a certificate from the local DRC to be qualified for the exemption
NO VAT exemption for direct sales of commercial fly ash or cenospheres, etc.
Corporate Income Tax Reduction based on the CIT
Law released in 2007



The revenue generated from sales of building materials made by fly ash (more than 70%
raw materials must be fly ash) could be reduced by 10% when calculating taxable income
The revenue generated from direct sales of commercial fly ash or balloon/bead could
also be reduced by 10% when calculating taxable income
If the manufacturer could be qualified as a “New and High-tech Enterprise,” it could
enjoy a CIT reduction from 25% to 15%
The development of fly ash utilization
policies: overview
Early stages
(1950s-2000)
•The Chinese government
started to promote fly ash
utilization technologies in
1950 for hydropower
projects
•Extended utilization to the
building materials sector
in 1960s and 70s
•Started to introduce
resource comprehensive
utilization polices in
1980s
•Started to introduce
incentive policies for fly
ash utilization in 1990s
Rapid development
(2000-2010)
•Sustainable
development, energy
saving, and emission
control became
fundamental national
policies
•Sped up the legislative
process by introducing a
set of laws related to fly
ash utilization
•Started to draw up
national plan, guidance,
recognition and
registration administrative
measures as well as
technical policy outlines.
• Introduced specific tax
incentive policies
Review, improve and
intensify enforcement
(2010 and beyond)
•Increasingly focused on
environment-friendly
development as well as
technology upgrades
•Reviews existing
regulations and policies,
draws up specific national
plan on industrial solid
waste utilization and
revises the out-dated
administrative measures
on fly ash utilization
•Further enhances law
enforcement and
introduces more incentive
policies
The development of fly ash utilization
policies: trade barriers
•
There are no major trade barriers, and foreign firms are encouraged by China’s
government to be involved in the fly ash comprehensive utilization sector -- from
equipment and technology supply to direct investment of fly ash utilization projects
•
However, there are some invisible trade barriers such as:
•
•
•
•
•
Chinese government’s policies to promote indigenous innovation
Rising nationalism
Government procurement process that favor local companies
“Trading market for technology” policies
Opaque market and policy environment
The development of fly ash utilization
policies: gradual progress in IPR
• China’s laws and regulations compliant with WTO’s TRIPS
• However, there are enforcement problems
• Some practical steps:
Register your IPR with the relevant bureaus
Include IPR clauses in your business contracts
Communicate all relevant corporate IPR policies to your staff
Confidentiality agreements for staff with access to key
technologies
• Understand China’s (often quickly changing) laws and
regulations, and different possible ways of redress.
•
•
•
•
1. China fly ash utilization overview
2. Drivers of fly ash utilization and relevant policy development trends
3. Key stakeholders and engagement strategy suggestions
4. Summary analysis
Key Stakeholders
National
Development and
Reform Commission
China Association of Resources
Comprehensive Utilization
Ministry of Industry
and Information
Technology
Ministry of
Science and
Technology
Ministry of
Commerce
Ministry of Housing
and Urban-Rural
Development
Ministry of
Environment
Protection
Ministry of
Finance
Datang
Huaneng
Huadian
CPI
Guodian
Other
IPPs
China Building Materials
Industry Association
Provincial
Government
Municipal
Government
Sino-Foreign Fly Ash
Utilization Initiative
China Coal
Processing and
Utilization
Association
China Ashtech
Development
Center
Fly Ash
Research
Center, Dezhou
Colleague
Solid Waste
Utilization
Technology
Research Center
Australian
Trade
Commission
Greenpeace
CSIRO
Department of
Foreign Affairs
and Trade
Greentech
Initiative
Other local and international
companies as potential
partners or investors
Key Stakeholders
China Association of Resource Comprehensive Utilization (CARCU)
中国资源综合利用协会
Description
CARCU is a national industrial association administrated by the SASAC. The mission of CARCU is to boost
resource utilization efficiency, conserve energy, and protect the environment. It is dedicated to delivering
comprehensive services to relevant government agencies and members through extensive policy research,
consultancy services, technical promotion, market development, professional training, conference and
exhibition as well as international exchange and cooperation.
The Board of Directors of CARCU consist of numerous entrepreneurs with expertise in comprehensive
resource utilization. CARCU currently has over 600 group members and 140 individual members consisting of
regulatory authorities, scientific research institutes, and enterprises.
Priority Ranking
CARCU is a key shareholder for foreign companies for three reasons. First, it has a professional committee
regarding fly ash utilization with a certain amount of fly ash utilization experts. Second, CARCU’s individual
members include many former and current officials in relevant government departments. Third, since it
provide various services in regard to integrated utilization of fly ash, it is familiar with the situation of its group
members, including many power generation enterprises, and China’s fly ash market in general. CARCU
encourages its members and the whole market to import advanced resource utilization technologies from
abroad, and would like to promote international exchanges.
Engagement Suggestion
• CARCU has extremely close relationship with NDRC and could be a gateway to engage with NDRC.
• CARCU participate World of Coal Ash and organize Chinese coal ash seminar and events every year, which
could be platforms for foreign companies to engage with them
• Direct engagement could also be arranged to introduce foreign companies to CARCU
• CARCU is also a leverage to influence the revision of Administrative Measures of Fly Ash Utilization
•Strongly suggest to establish direct and close relationship with CARCU
Priority: HIGH
Receptiveness: HIGH
Key Decision Makers
WANG Jiwei (王吉位) is
the Secretary General of
China Association of
Resource Comprehensive
Utilization.
Wang graduated from
China Central South
University with a major in
mining engineering.
Wang used to work in
China Non ferrous Mining
Industry Corporation,
China Non ferrous Mining
Industry Association and
Key Stakeholders
China Building Materials Industry Association (CBMIA)
China Building Materials Foundation (CBMF)
中国建筑材料工业协会/中国建筑材料联合会
Description
CBMIA/CBMF is a national industry association made up of building materials enterprises, civil
organizations, and individuals. It is registered with the Ministry of Civil Affairs and administrated by
the State-owned Assets Supervision and Administration Commission.
CBMIA/CBMF safeguards the rights and interests of building materials enterprises, promotes a fair
and competitive market, advances scientific and technological progress and innovation, promotes
international cooperation and exchanges, and assists the government with industry management.
CBMIA/CBMF provides consulting services on building materials development strategy, industrial
policy, investment opportunities in building materials industry, the market analysis and demand
forecasting, etc.
Priority Ranking
CBMIA/CBMF is important to foreign companies because it is a bridge between the government and
building material enterprises.
Engagement Suggestion
• Institute of Technical Information for Building Materials Industry (foreign companies’s co-sponsor of
Asia fly ash conference at the end of October) is direct affiliated to CBMIA/CBMF, which could be a
good leverage for foreign companies to engage with CBMIA /CBMF
• CBMIA/CBMF has good relationship and could influence government new walling material offices.
• Suggest direct meetings with CBMIA/CBMF to seek endorsement and supports to raise foreign
companies’s profile in the building materials sector
Priority: HIGH
Receptiveness: HIGH
Key Decision Makers
ZHANG Renwei
(张人为) is current
president of
CBMF/CBMIA and
previous head of the
National Building
Materials Bureau
(1985 to 2001). Mr.
Zhang is responsible for
dealing with CBMF’s
daily affairs, checking
up on the
implementation of
CBMF’s internal
decisions, nominating
Deputy Secretary
General and major
leaders, etc.
Key Stakeholders
China Coal Processing and Utilization Association (CCPUA)
中国煤炭加工利用协会
Description of Organization
CCPUA was formed in 1982. It is a nationwide association comprised of enterprises, organizations,
research institutions, and individuals who undertake coal preparation and processing,
environmental protection, energy conservation, coal quality control, and other coal business.
As a bridge between enterprise and government, CCPUA coordinates economic and technical
relations between various authorities and industries. CCPUA promotes competition, improves
efficiency, and supports sector development.
CCPUA has three departments: Department of General Affairs, Department of Coal Preparation and
Processing, and the Department of Energy Conservation. Entrusted by the central-level State
Administration of Coal Industry, CCPUA also gives guidance to the Coal Environmental Protection &
Safety Center and various Mine Safety Supervision stations.
Priority Ranking
CCPUA is important to foreign companies because it is a bridge between the government and coal
industry for the comprehensive and clean utilization of coal.
Engagement suggestion
• CCPUA also has close relationship with NDRC and could be a leverage for foreign companies to
influence NDRC in long term.
• Direct meeting and joint seminars could be helpful to engage with CCPUA and gain their supports
to raise foreign companies’s profile in the coal industry
Priority: HIGH
Receptiveness: HIGH
Key Decision Makers
LU Ying (吕英) has been
director general of the
CCPUA since June
2007. The director
general is responsible
for chairing the board of
directors, and
supervising the
implementation of the
decisions made by the
members’ congress,
the board of directors
and the standing
committee
Lu used to work in the
Ministry of Coal
Industry and the
National Coal Industry
Corporation.
Key Stakeholders
Ministry of Industry and Information Technology
工信部节能司
Description
A successor of the former Ministry of Information Industry (MII), MIIT was created in 2008 through
the merger of MII, the State Council Informatization Office (SCIO), the Commission of Science,
Technology and Industry for National Defense (COSTIND), and the industrial management and
project approval functions of the NDRC. The reorganization expanded MIIT’s previous portfolio to
span a much broader range of industries, including food, auto, equipment, textiles, chemical, steel
and mining. The ministry’s core mission is to advance the level of energy-saving effects in steel,
ferrous metal, construction materials, chemistry and other industries.
MIIT is therefore responsible for developing policies, regulations and standards covering industrial
administration as well as reviewing and granting investment project approvals in sectors under
MIIT’s supervision.
Relevant Department
• Department of Energy Saving and Resources Comprehensive Utilization
Priority Ranking
MIIT is a key stakeholder for foreign companies given its role to formulate building material industry
policies, clean production regulations and etc.
Engagement Suggestion
• Suggest to seek meetings with MIIT after foreign companies has its pilot project running in China,
could then invite MIIT officials visit the pilot project or R&D center back in Australia
• Keep monitoring MIIT policy and seek the engagement opportunity through third party relationship
Priority: HIGH
Receptiveness: Low
Key Decision Makers
ZHOU Changyi (周长益),
director general of the
MIIT Department of
Energy Conservation and
Resources Utilization.
Zhou used to work in
NDRC’s Department of
Resource Conservation
and Environmental
Protection before the
government reshuffle in
2003.
Zhou also worked in
National Economic and
Trade Commission and
served in Chinese
Embassy in U.S. during
1996-2000
Key Stakeholders
National Development and Reform Commission (NDRC)
发改委环资司
Description of Organization
NDRC is China’s leading ministerial agency tasked with monitoring and planning for macroeconomic
issues and development. While not an industry-specific ministry, it has power and influence that
typically exceeds all other ministerial-ranked bodies and it frequently encroaches upon other
ministries’ remit should it deem the issue of national or macro importance. Despite a recent
restructuring transferring several areas to other ministries, NDRC continues to be the most
important macro-level policy decision-maker affecting the long-term business and investment
environment in China.
Priority Ranking
NDRC is a key stakeholder for foreign companies. First, NDRC or its provincial counterparts, will be
the key decision-maker for foreign companies’s project approval. In addition, NDRC plays a leading
role in shaping industry specific policies, such as the Administrative Measures of Fly Ash Utilization
(together with MIIT) as well as the Industrial Catalogue for Foreign Investment as well as creating the
national five-year plans.
Relevant Department
• Department of Resource Conservation and Environmental Protection
Engagement Suggestion
• Suggest to seek meetings with NDRC after foreign companies has its pilot project running in China,
could then invite NDRC officials visit the pilot project or R&D center back in Australia
• Keep monitoring NDRC policy and seek the engagement opportunity through third party
relationship
Priority: HIGH
Receptiveness: Low
Key Decision Makers
ZHAO Jiarong (赵家荣),
deputy secretary general of
NDRC and director general
of the Department of
Resource Conservation and
Environmental Protection.
She used to worked in State
Statistic Bureau and
National Economic and
Trade Commission and
joined NDRC in 2003 as the
director general of the
resources conservation and
environmental protection
department and had been
promoted as NDRC deputy
secretary general since July
2010.
30
Key Stakeholders
Ministry of Housing and Urban-Rural Development
建设部 建筑节能与科技司、建设部科技发展促进中心
Priority: HIGH
Receptiveness: Low
Description
MOHURD was established during the 2008 central government restructuring by absorbing the
responsibilities of the former Ministry of Construction. The ministry is charged with formulating
regulations and policies supervising the constructions of urban infrastructures and guiding China’s
urbanization. A key task of MOHURD is to ensure effective planning for China’s urbanization, so as to
ensure that urban expansion will take into full account the social, economic, commercial and
environmental issues.
Key Decision Makers
Priority Ranking
MOHURD is an important stakeholder for foreign companies due to its role to promote new walling
materials as well as new energy efficiency and resources comprehensive utilization technologies in
the construction and building sector.
Relevant Departments
• Department of Building Energy Efficiency and Technology
• Science and Technology Development Center of MOHURD.
Engagement Suggestion
• Direct engagement with the Science and Technology Development Center first and use it as a
gateway to engage with MOHURD.
• Suggest to consider and develop a joint project with the Center to promote the foreign companies
products from the pilot fly ash project in the building sector as new walling materials
• Suggest to seek meetings with MOHURD after foreign companies has its joint pilot project with the
Center, could then invite MOHURD officials visit the pilot project or R&D center back in Australia
CHEN Yiming (陈宜明) ,
Director General of
Department of Building
Energy Efficiency and
Technology.
Chen used to worked in
Science and Technology
Development center of the
former Ministry of
Construction.
YANG Rong (杨榕), present
Director General of the
Science and Technology
Development Center.
Yang used to worked in the
Standardization Dept. of
Ministry of Construction.
1. China fly ash utilization overview
2. Drivers of fly ash utilization and relevant policy development trends
3. Key stakeholders and engagement strategy suggestions
4. Summary analysis
Summary analysis: market entry platform
•
China has a huge fly ash output every year, which will only keep growing with the pace
of China’s economic expansion and the reality of China’s energy mix. The market will
be huge for foreign companies if foreign companies provides innovative solutions and
works with the right partner.
•
However, there are already many local Chinese companies and research institutes
working in this sector, although the majority utilization of fly ash in China is still at the
low value-added end.
•
Foreign companies will need a strategy to distinguish itself from those competitors and
raise its profile in the market as an innovative leader. Leveraging the support from the
Australian government, foreign companies might like consider establishing a SinoForeign Fly Ash Utilization Initiative, which could be:
•
A platform to engage with government agencies for financial support and preferential
policies; and,
•
A leverage to raise the company profile to attract good partners and potential investors.
Thank You!
David Harris
[email protected]
Asian Coal Ash Association www.asiancoalash.org
COAL ASH ASIA 2014
Shuozhou City, Shanxi Province, China
September 25th – 27th
*500+ industry leaders, technology providers and buyers
*Delegations from the USA, Australia, India, Japan
Please join us!

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