Event overview: on March 5, the fifth session of the 13th National People’s Congress opened at the Great Hall of the people in Beijing. Premier Li Keqiang delivered a government work report. In the government’s work task in 2022, it is proposed to continuously improve the ecological environment and promote green and low-carbon development.
We will strengthen the comprehensive management of the ecological environment and deepen the fight against pollution. The main work of ecological environment treatment includes: 1) strengthen the coordinated control of multiple air pollutants and regional coordinated treatment, strengthen the pollution control of important water areas, and promote the treatment of soil pollution; 2) Strengthen the treatment of solid waste and new pollutants, and promote waste classification, reduction and recycling; 3) We will improve policies related to energy and water conservation and recycling of waste materials. At present, the atmospheric treatment technology is mature, but the equipment market space is relatively limited, and the demand for carbon reduction is expected to bring new increment to the industry; In the context of rural revitalization, the construction of high standard farmland has been popularized, and cultivated land remediation will provide a broad market space for the soil remediation industry; Promote waste classification, promote waste reduction and recycling, and the resource utilization industry of bulk solid waste and hazardous waste has long-term growth.
Orderly promote the carbon neutralization of carbon peak and implement the action plan of carbon peak. While promoting the energy revolution, we should also ensure the security of energy supply. China’s resource endowment of “rich coal, poor oil and little gas” determines that the process of low-carbon energy transformation is difficult to achieve overnight and needs overall planning. At this stage, high parameter and large capacity coal power is still the best choice for clean and efficient utilization of coal, and it is also the ballast and stabilizer of energy supply. Promote the planning and construction of large-scale wind and photovoltaic bases and their supporting regulatory power sources, combined with the supporting of various energy storage such as pumping and storage and electrochemistry, improve the consumption and utilization capacity of new energy in the new power system, and gradually complete the alternation of new and old energy. The transformation from “dual control” of energy consumption to “dual control” of total carbon emission and intensity is the starting point of policy promotion in line with national conditions.
Investment suggestion: the government’s work task in 2022 has corrected or improved some problems in 2021, and the development pace of ecological environmental protection and green and low-carbon will be stable and far-reaching. In the electric power industry, it is recommended that China Yangtze Power Co.Ltd(600900) , China National Nuclear Power Co.Ltd(601985) , Shenergy Company Limited(600642) , and China Three Gorges Renewables (Group) Co.Ltd(600905) , in the hydropower sector, in the nuclear power sector, in the thermal power sector, and in the green power sector; In the environmental protection industry, it is suggested to pay attention to Beijing Geoenviron Engineering & Technology Inc(603588) , Grandblue Environment Co.Ltd(600323) , and Fujian Longking Co.Ltd(600388) , in the environmental remediation sector, in the waste disposal sector and in the atmospheric governance sector.
Risk tip: declining demand; Price reduction; Rising costs; Reduction of precipitation; Policy promotion lags behind.
