(Xinhuanet)
As China faces an uphill battle against worsening environmental problems, Veolia Environnement, a French environmental services firm, said it will expand its presence in the country to help contend with the situation.
"We have the expertise ranging from waste treatment to energy to provide environmentally and economically workable solutions," said Denis Gasquet, a member of Veolia's board of directors.
Veolia, which is listed in New York and Paris stock exchanges, is the world's largest company group providing environmental services. It has four business divisions -- Onyx, Veolia water, Dalkia and Connex -- that specializes in waste management, water, energy and transport.
Onyx and Veolia water have successfully entered the Chinese market, winning more than a dozen contracts to build large and modern waste and water treatment facilities across the country.
"China's economy is developing fast and the business opportunities are huge, " said Gasquet, also chief executive officer of Onyx. He said that Veolia's business in China is growing much faster than in any other regions.
According to Gasquet, Veolia's revenue in China accounts for 2.5 percent of its total 35 billion US dollars revenue worldwide.
"This is not a small sum, because China is a new market," Gasquet said.
Gasquet said that Veolia had planned to raise the percent of revenue in China to about 15 percent within 10 years. To date, Veolia has invested 800 million US dollars in China.
Jorge Mora, CEO of Onyx Asia, was also upbeat about business potential in China, noting that relocating headquarters from Singapore to Beijing was a strong indication of his confidence in China.
He said his confidence was boosted by Chinese government's determination to clean up the environment.
In the government work report to the National People's Congress, Chinese Premier Wen Jiabao pledged Saturday that the government will step up its efforts to reverse the trend of environmental degradation.
"I also know China has started trial calculation of green GDP that deducts environmental cost," he said, "In this way, the local governments will have to take more care of environment."
"China has a 1.3 billion population, and each person produces 0.6 kilogram of garbage per day on the average, you can imagine how large the waste management market is," he said.
Official figures indicated that China has more than 20,000 businesses involved in environment-related businesses. Their annual output value has exceeded 230 billion yuan (about 27.8 billion US dollars).
It is estimated that the market will grow more than 10 percent annually. By 2010, the total revenue of environment market in China will surpass 750 billion yuan (about 90 billion dollars), accounting for some 4.3 percent of the country's GDP.
"Environmental protection has now been brought into the mainstream work of the Chinese government," said He Ping, a project officer with the United Nations Development Program China Office.
He cited the so-called "Environmental Protection Storm" launched by the State Environmental Protection Administration (SEPA) as a strong indication.
SEPA has ordered the halt of multi-billion dollar construction projects nationwide on the ground that they did not pass the country's Law on Environmental Impact Assessment. The projects include the Xiluodu hydroelectric dam on the upper reaches of the Yangtze River that was built by the ministry-level Three Gorges Corporation.
"The move marks a new era for China to combat environmental degradation with laws and regulations," he said.
He said that China is in urgent need of funds, expertise and sound experience to tackle its environmental problems and that foreign companies will provide necessary help.
Gasquet said that Veolia's energy division is also seeking opportunities to enter the Chinese market. However, he said that along-term market will depend on the implementation of laws and regulations.
"There is need to enforce laws and regulations to create a long-term market, and I am aware this is also the government's intention," he said.