(Yicai Global) Aug. 24 -- China's Ministry of Industry and Information Technology has published a guide on the development of the environmental equipment manufacturing industry, suggesting the sector could generate CNY1 trillion (USD150 billion) by 2020.
By then, major technical equipment in the industry should have advanced internationally. China will work with ten leading enterprises worth CNY10 billion and set up hundreds of smaller companies to help boost the sector's output, the MIIT said.
The environmental equipment making industry is divided into air pollution prevention and control, water pollution prevention and control, solid waste disposal, soil remediation, environment monitoring equipment and noise and vibration control, the ministry explained.
In terms of fiscal policy for the sector, the government will offer income tax breaks for environmental protection equipment and set up an insurance compensation scheme. It will also run financial products, such as green credit and bonds, to ramp up its support for the industry.
The sector's output value doubled to CNY620 billion (USD93 billion) last year from its 2011 value, but the industry faces such problems as a lack of innovation and intensified competition in low-end products, the MIIT added.