Event overview. On February 22, the State Council officially issued the opinions on doing a good job in the key work of comprehensively promoting rural revitalization in 2022.
Focus 1: green agriculture. The opinion requires: “strengthen the resource utilization of livestock and poultry manure, promote the scientific use and recycling of agricultural film, and support the comprehensive utilization of straw. Implement major projects of ecological protection and restoration, revive the ecological environment of rivers and lakes, and strengthen the protection and restoration of natural forests and the recuperation of grasslands.” The construction of high standard farmland helps to reduce the use of chemical fertilizers and pesticides and accelerate the energy utilization of straw and feed, such as biomass power generation, carbon based fertilizer, etc. Launching the third national soil survey and implementing major ecological protection and restoration projects will drive the remediation of contaminated sites from the source and accelerate the release of potential market space for soil remediation.
Focus 2: water treatment. The opinion requires: “promote the treatment of rural domestic sewage by zoning and classification, give priority to the treatment of villages with concentrated population, and promote miniaturization, ecological treatment and sewage resource utilization if it is not suitable for centralized treatment.” This will promote the construction of rural sewage pipe network, improve the sewage treatment rate and resource utilization rate, and the development of water treatment industry is expected to continue to improve. Promote rural domestic sewage treatment step by step, adopt sewage treatment mode and process in line with rural reality, and miniaturized decentralized sewage treatment equipment will have broader market prospects.
Focus 3: waste treatment. The opinion requires: “promote the classification and reduction of domestic waste at the source, strengthen the construction of comprehensive disposal and utilization facilities of village organic waste, and promote local utilization and treatment.” At present, China’s rural domestic waste collection and transportation system is not perfect, and the harmless treatment rate is low. By promoting the construction of relevant systems, accelerate the exploration of local and nearby treatment and resource utilization path of rural domestic waste, so as to provide potential incremental space for waste incineration power generation and solid waste resource recovery.
Focus 4: Agricultural carbon sink. The opinion requires: “research and develop and apply carbon reduction and exchange enhancement agricultural technologies, and explore the establishment of a value realization mechanism for carbon sink products.” Strengthening the development of agricultural carbon sequestration will help to achieve the double carbon goal, promote the reduction of chemical fertilizer, plastic film and pesticide, promote the comprehensive utilization of agricultural and forestry biomass, and then realize the green and sustainable development of agriculture.
Investment suggestion: in 2022, No. 1 central document focused on the key work of rural revitalization, which helped to improve agricultural non-point source pollution, improve the ability of rural sewage treatment and water supply, improve the collection and transportation system of rural solid waste and utilization resources, and increase the contribution of rural carbon through the carbon sink. The green agriculture sector suggests paying attention to Beijing Geoenviron Engineering & Technology Inc(603588) , Dayu Water-Saving Group Co.Ltd(300021) , Dongzhu Ecological Environment Protection Co.Ltd(603359) ; It is suggested to pay attention to Chengdu Xingrong Environment Co.Ltd(000598) , Csd Water Service Co.Ltd(603903) in the water treatment sector; It is suggested to pay attention to Grandblue Environment Co.Ltd(600323) , fulongma and Qiaoyin City Management Co.Ltd(002973) in the waste treatment section.
Risk warning: policy promotion is not as expected; Local financial pressure; Business model mismatch
