New analysis from Frost & Sullivan finds that companies across the chemical, cement, oil and gas, mining, power generation, metal, glass, tyre, and sugar industries will apply for exemption from the first round of emission control, coming into effect in 2015. As the costs involved in complying with two emission control changes would be too prohibitive, most companies will undertake one large capital expenditure project to meet the revised levels, due to come into force in 2020. The time taken to acquire board approval, select the appropriate supplier, and install the equipment can take months, if not years, from start to finish.
“Many of the companies across industries will need to allow for massive capital expenditure projects (into the tens of millions in some instances) in order to meet the revised 2020 emission levels,” notes Frost & Sullivan consultant Andrew Minor. “The question is how will companies achieve this in a cost effective way that is pleasing to all stakeholders across a struggling economy?”
Companies like J&C Engineering, a South African based industrial emission control company, have taken the initiative to support the legislation to reduce emissions, by entering into strategic international partnerships with companies, such as Beth Filters, a German manufacturer of air filtration devices and international leader in its field.
This strategic partnership allows J&C to offer turnkey solutions to the market, and a broader array of cost effective solutions to the industry to help emitters meet the revised emission levels.
“New air quality target places more stringent limits on industries to reduce their emissions to acceptable levels,” notes Director of J&C Engineering, Mr Joseph Edward Peel. “This strategic alliance will now offer the private sector cost effective emission control solutions to smaller industry participants, including boilers, foundries and the chemical sectors.”
While the legislation for reducing emissions may have high cost implications to industry, the legislation is a positive step towards lowering harmful pollutant levels, supporting the global drive to decrease harmful emissions across relevant industries, and enhance environmental sustainability and access to clean resources.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?