Opinions of the General Office of the State Council on Promoting the Third-party Treatment of Environmental Pollution

Opinions of the General Office of the State Council on Promoting the Third-party Treatment of Environmental Pollution

Guo Ban Fa [2014] No.69

December 27, 2014

The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, all ministries and commissions of the State Council and all institutions directly under the State Council,

The third-party treatment of environmental pollution (hereinafter referred to as the "third-party treatment") is a new mode in which a polluter entrusts an environmental service provider to control the pollution by paying fees or making payment as agreed in a contract. Third-party treatment is an important way to advance the specialization and industrialization of environmental protection facilities construction and operation, and an effective measure to promote the development of environmental service industry. In recent years, the relevant departments in all regions have proactively explored the third-party treatment and achieved initial results, but there are still some problems to be solved, such as the unsound system and mechanism, and the laws and policies to be perfected. In order to carry out the third-party treatment, with the consent of the State Council, the opinions are hereby given as follows:

Article 1 General Requirements
1. Guiding ideology. Thoroughly carry out the spirits of the 18th National Congress of the Communist Party of China and the Second, Third and Fourth Plenary Sessions of the 18th Central Committee of the Communist Party of China, adhere to the orientation of the socialist market economic reform, create a favorable market and policy environment, improve the government management and services, and perfect the third-party treatment market featuring uniformity and standardization, orderly competition and effective market regulation, in accordance with the decisions and arrangements of the Party Central Committee and the State Council, with a focus on the public environmental facilities and industrial parks as well as the orientation of marketization, specialization and industrialization, so as to attract more investments by social capital, promote the establishment of the new pollution treatment mechanism requiring the polluters to pay fees and the third party to treat the pollution, and constantly enhance the level of pollution treatment in China.
2. Basic principles.
(1) Adhere to the principle that polluters pay fees. According to the type, quantity and concentration of the pollutants, the polluters bear the pollution treatment expenses and the third party entrusted to treat the pollution shall conduct the specialized treatment as agreed upon in the contract.
(2) Adhere to market-oriented operation. Give full play to the decisive role of the market in allocating resources, value enterprises' status as market players, create a good market environment, and be active in developing a sustainable business model, so as to avoid the "arbitrary arrangement" against the will of enterprises.
(3) Adhere to the guide and promotion by government. Give a better play to the role of government, innovate the investment and operation mechanisms, reinforce the policy support and incentives, and strengthen the market regulation and environmental law enforcement, to create equal opportunities for access by social capitals.
3. Main objectives. By 2020, the third-party treatment in key areas such as public environmental facilities and industrial parks will have made significant progress; the efficiency and professional level of pollution treatment will have been significantly improved; and more social capital will have been attracted to enter the pollution treatment market. The reform on investment and operation mechanisms for public environmental facilities will have been basically finished; market-based public environmental service supply system featuring efficiency, high quality and sustainability will have taken shape basically; and with the type of business and the mode of the third-party treatment becoming more mature, a batch of environmental services companies with developed technology, high operation and management level, good credit standing in general and international competitiveness will have emerged.

Article 2 Promote the Marketization of Investment and Operation in Respect of Public Environment Facilities
4.
　　......