Environmental Protection Industry Strategy Research: Identifying the Second Growth Curve for the Environmental Protection Sector

Market size estimation based on the above data: During the 14th Five-Year Plan period (2021–2025), the market size for flexibility retrofitting of coal-fired power plants is estimated at approximately RMB 6–18 billion. According to the Notice on Launching Nationwide Retrofit and Upgrading of Coal-Fired Power Units, all existing units should undergo flexibility retrofitting where feasible. If half of the total installed capacity of 1.29 billion kW of existing units undergoes retrofitting, the corresponding market size is projected to reach RMB 19.5–58.1 billion. Upon completion of these retrofits, an annual power auxiliary service operation & maintenance market exceeding RMB 100 billion is expected to emerge. As policies related to power auxiliary services and clean energy integration are progressively implemented, broader participation by coal-fired power enterprises in flexibility retrofitting and deep peak-shaving operations is foreseeable. 7. Investment Analysis Waste-to-Energy Incineration: Significantly benefits from carbon neutrality advancement; industry leaders’ transformation presents renewed opportunities for value re-rating. Industry significantly benefits from carbon neutrality advancement: 1) Methane emission reduction mandates will generate new demand and raise the industry’s ceiling; 2) CCER (China Certified Emission Reduction) trading will enhance both profitability and cash flow for waste incineration companies. Low-valuation industry leaders transitioning into new energy sectors present opportunities for value re-rating. 1) Since 2021, waste incineration companies have accelerated their transformation: ① Weming Environmental Protection partnered with Tsingshan Group to sign an agreement for a laterite nickel ore smelting project, aggressively entering the new-energy materials sector. ② China Tianying signed an industrial investment agreement with Rudong County Government covering offshore wind, intertidal photovoltaics, and gravity energy storage, and collaborated with Energy Vault—the gravity storage technology provider—to introduce and promote advanced gravity storage technology domestically. ③ Wangneng Environment acquired Zhejiang Lixin New Materials Co., Ltd., actively entering the green recycling and reuse industry for lithium battery materials. ④ Shengyuan Environmental Protection partnered with China Three Gorges Qihang to develop offshore wind and photovoltaic power generation projects in Fujian Province. ⑤ Longking Environmental Protection introduced Zijin Mining as a strategic investor via a private placement, jointly expanding into energy conservation & environmental protection and new energy businesses—including flue gas treatment for smelters, comprehensive utilization of mine tailings, soil and ecological restoration of mining areas, carbon capture and emission reduction technologies, membrane-based lithium extraction from salt-lake brines, EPC construction and O&M of photovoltaic and wind power plants, and lithium battery new-energy materials. 2) Robust operational cash flows support the execution of transformation plans, enabling entry into high-growth new energy sectors and creating renewed opportunities for value re-rating. Recycled Resources: Petrochemical-derived recycled resources capable of exporting negative carbon tariffs to the EU have entered a golden era of rising volume and price. Recycled Oil: Carbon constraints drive strong demand growth; industrial upgrading of recycled used cooking oil is imminent. 1) Carbon constraints stimulate demand for recycled oil, keeping European biodiesel volumes and prices persistently high. 2) International policies drive “high-end” utilization of used cooking oil in China: For automotive fuel, the hydrocarbon-based (hydroprocessed) trend is evident; for aviation fuel, IATA’s 2050 carbon neutrality target is unlocking demand for biomass-derived hydrocarbon jet fuel. The added value of hydrocarbon diesel produced from used cooking oil will significantly exceed that of UCOME (used cooking oil methyl ester), clearly indicating an industry-wide trend toward high-end product upgrading. Recycled Plastics: Policy-driven demand release; high-end bottle-to-bottle PET recycling applications are replacing conventional alternatives faster than expected. 1) Recycling and reuse represent the optimal disposal method for waste plastics. Recycled plastics deliver energy savings and emissions reductions, making them a key pathway toward carbon neutrality.

The 2027 Düsseldorf International Lubricants Exhibition (Lubricant Expo Europe) in Düsseldorf, Germany, will be held in September.

The Düsseldorf International Lubricants Exhibition will take place from September 14 to 16, 2027, at Messe Düsseldorf Exhibition Centre. The event is organized annually by Event Partners Ltd. [Market Background] The overall size of the European lubricants market remains relatively stable, yet structural changes are pronounced. Annual consumption stays in the multi-million-ton range, with growth increasingly shifting toward high-value-added products. As a regional industrial bellwether, Germany’s manufacturing transformation has directly reshaped the demand structure for lubricants. Demand-side shifts stem primarily from two sources: First, the electrification of vehicles has created new demand for electric-vehicle-specific lubricants and thermal management fluids; second, increased national investments—particularly in defense and infrastructure—in certain European countries have driven incremental demand for industrial lubricants and specialty greases. Regional disparities are notable: In mature markets such as Germany and Italy, traditional automotive manufacturing demand has softened, yet new growth opportunities have emerged in defense, aerospace, and renewable energy sectors; Turkey exhibits notably rapid growth in lubricant demand, driven by automotive expansion and industrialization; emerging markets including Poland and Romania show rising industrial lubricant demand, influenced by manufacturing reshoring and logistics-sector development.

European Recycled Base Oil Demand Surges

Sep 16, 2026

ICIS reports European recycled base oil demand surged as Middle East conflicts tightened virgin supply, prompting blenders to increase usage ratios. Prices approached parity with virgin oil during shortages, accelerating market adoption despite rising energy costs.

ccin

2026-03-04

Oil Spike from Iran War to Hit US GDP, Pressure Inflation, Boost Competitiveness – ICIS Economist

2026-04-15

US Won’t Renew Iranian, Russian Oil Waivers, Bessent Says

2026-04-21

ICIS Graphic: Global Base Oils Bullish Reaction to Middle East War and Outlook

2026-06-02

Oil Spike Risk to $150 Threatens Chemical Industry and Economy

2026-06-25

Global Base Oils Face Long Recovery Despite Hormuz Reopening