Page 11 - ICG Full Business Plan

Market Overview (China & Japan)
In China, it is es mated that over 16 percent of the usable land is considered contaminated. Soil remedia on expenditures in China are predicted to reach over $6.4 billion per year by 2016 or about 15 percent of the total world market for the year. It is the largest and fastest growing emerging market for environmental technologies. The overall environmental technologies market in China (including goods and services) is valued at $60.7 billion for 2016.
In 2014, China fundamentally restructured its approach to environmental regulatory enforcement with the introduc on of the amended Environmental Protec on Law (EPL). The revised EPL took e ect on January 1, 2015 and serves as an enabling statute that could yield stronger adherence to environmental rules, if incen ves and penal es therein ul mately prove to be greater than the cost of non-com- pliance.
In November 2012, the Chinese government adopted an ac on plan to address moun ng environmental and health issues related to improperly managed hazardous waste (medical, chemical and heavy metal). The Chinese Ministry of Environmental Protec on es mates 60 million tons of hazardous waste are generated annually as of 2015. With current disposal capacity at approximately one-third of that amount, there is an urgent need to develop disposal capacity commensurate to the scope and size of waste produc on. Four billion dollars have been set aside to construct 300 hazardous waste disposal facili es and ini ate brown eld remedia on projects throughout China.
Japan’s $3.1 billion remedia on market trails the U.S. in development, but, due to regulatory advances, is on the threshold of rapid expansion. Japan has a detailed body of regula ons that address air and water contamina on, but only recently has begun to regulate soil contamina on.
New Regula ons: A number of high pro le incidents (such as the Minamata mercury disaster) caused Japan to introduced strict pollu- on control regula ons and invested heavily in abatement technology, much of it transferred from the US and Europe. As a result of new regula ons Japan now has one of the largest environmental industries in the world. Its industry is amongst the cleanest and its opera ons the most energy e cient. The emphasis today is on introducing integrated, upstream environmental management into the public and private sectors.
Corporate Japan: Corporate Japan prides itself on its quality management and Japanese companies are leading proponents of the ISO 9001 quality standard for products. Similarly, Japanese rms, led by the electronics sector, have been leaders in implemen ng formal Environmental Management Systems (EMS) in the last ve years. Companies like Sony, Canon and Matsushita have invested heavily in training and management systems and have been the major force behind ISO 14001 implementa on in Asia.
A recent survey by Japan’s Environmental Agency indicated that more companies than ever are gaining a be er understanding of environ- mental issues and enforcing environmental conserva on measures.
Global Warming: About 70% of all the companies surveyed responded that industry and the en re society must make e orts to reduce the greenhouse gas emissions. More than half of respondents replied that they are already taking some ac on for this purpose. About 40% of all companies would accept (or accept, with certain condi ons) the introduc on of a carbon tax. Iron Creel’s Infrared Technology is a major step towards the reduc on of global warming greenhouse gases. Since the technology does not require fossil fuels for heat, it does not generate the greenhouse gases that our compe tors generate.
New Technologies: New technologies are in high demand in Japan. In areas of alterna ve energy, recycling and resource recovery and soil/groundwater remedia on, both U.S. and European technologies are extremely compe ve. Japan’s Ministry of Interna onal Trade and Industry (MITI) created the “New Sunshine Program” aimed at accelera ng R&D work in innova ve technologies. Iron Creel’s Infrared Technology will be introduced through this program is a new, innova ve technology for trea ng petroleum-contaminated soil.
In summary, Japanese authori es want to ensure that Japan plays an ac ve role in the global environmental arena. Japan wants to show the world that it wants to help bring developing countries to its level of environmental standards. Iron Creek’s Technologies are well suit- ed to help Japan in the soil recycling industry.
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data source: the U.S. Dept. of Commerce