VDMA Info Day - Environmental Enforcement

Environmental law enforcement has become the “new normal” for many companies operating in China. With company inspections, stoppage days, supply chain disruptions, and tightening environmental obligations, it has become a challenge for some. Others are profiting from the demand for environmentally friendly technologies and related financial incentives. New financial products are being created under the labels of green financing and emmission rights trading. Taylor Wessing partner Jakob Riemenschneider will give you an update on recent trends and discuss how they affect your business.

The Chinese government has announced it official use of the taxation method as part of its nationwide attempt to fight against pollution. The first environment protection tax has taken effect from 1 January 2018, replacing the pollutant discharge fee system. It is necessary to understand where the new law targets at, how it measures, and what impacts it means to the enterprises. Enterprises will face an increasing tax cost for pollution. Proactive measures in controlling the tax risk should be considered.

Since 2015 we see a change in how environmental protection laws in China will be executed and monitored. In 2016 MEP inspectors were given special authority to supersede provincial officials and in 2017 nationwide inspections were conducted and companies shut down. Technologies such as wastewater evaporator systems have been established on the market as the most economical method for the processing of a big variety of different industrial wastewaters. VACUDEST vacuum distillation systems have set benchmarks on the market regarding quality of the purified water and operation cost, creating a large number of zero effluent discharge productions in recent years. No waste water discharge – no monitoring.