Core Insights - The number of urban landfills in China has decreased from 640 in 2015 to 366 in 2023, indicating a significant shift towards waste incineration as the primary method of waste management [1][6] - Major cities are actively engaging in the restoration and repurposing of landfills, with notable projects like the Hai Kou Yan Chun Ling landfill and the Shenzhen Yu Long landfill, which are being transformed into eco-friendly and industrial spaces [1][4] Group 1: Landfill Statistics and Trends - As of 2023, incineration accounts for 75.3% of urban waste treatment in China, with 696 incineration facilities compared to 366 landfills [6] - The Yu Long landfill in Shenzhen, once the largest in the city, is undergoing a major restoration project with a total investment of 21.7 billion yuan, aimed at converting the site into digital industry land [2][4] Group 2: Project Details and Implications - The Yu Long landfill restoration project is expected to release approximately 300,000 square meters of industrial land, with construction scheduled to be completed by the end of 2026 [3][4] - The project includes comprehensive environmental restoration efforts such as waste excavation, leachate treatment, and odor control, with a total construction duration of 894 days [4][3] Group 3: Future Directions and Comparisons - The transformation of landfills into parks and industrial areas is becoming a common practice, with examples from cities like Wuhan and Hangzhou, although the Yu Long landfill's conversion into industrial land is relatively unique [7][8] - Shenzhen's ongoing efforts to manage and repurpose closed landfills are guided by new local standards aimed at enhancing land use and mitigating environmental impacts [8][9]

Core Viewpoint - The current situation in the environmental protection industry should be defined as market clearing or survival of the fittest, rather than "involution" [1][5]. Group 1: Market Dynamics - The environmental protection industry is not experiencing traditional overproduction issues, as it primarily operates in a customized field where most products are tailored to specific projects [3][4]. - The decline in market demand is attributed to the peak of environmental governance intensity having passed, particularly affecting municipal infrastructure and industrial pollution control sectors [3][6]. - The industry is entering a natural clearing phase due to reduced demand and financial pressures on local governments, leading to a situation where supply exceeds demand [6][10]. Group 2: Policy Implications - The recent "anti-involution" measures proposed by the government are expected to extend to other industries, prompting environmental companies to prepare accordingly [2][4]. - The environmental protection sector is not included in the ten key industries mentioned by the Ministry of Industry and Information Technology, but the implications of these policies will still affect it [2][4]. Group 3: Industry Structure - The environmental protection industry lacks a high concentration of leading firms, and regional market segmentation persists, preventing the formation of a monopolistic market structure [4][9]. - The industry is characterized by a reliance on external funding, as it is a public service sector that cannot achieve self-financing [6][10]. Group 4: Future Trends - Despite challenges, new companies continue to enter the environmental sector, including major state-owned enterprises that leverage their advantages to secure contracts [10][11]. - The presence of large state-owned construction companies in the environmental sector may disrupt existing operational norms, as they focus on the construction aspect of projects while outsourcing technical services [11].