Wood In Architecture Issue 1, 2018

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NEWS HEAVY INDUSTRIES MUST NOW PAY FOR WASTE EMISSIONS UNDER CHINA’S NEW ENVIRONMENT LAW By Lydia Chen, Canada Wood rst environment protecon tax law kicked in on January 1 this year, replacing a pollutant discharge fee system which, for decades, had been in place but lacked teeth. Under the new law, companies will have to pay levies for waste discharged into the environment—such as sulphur dioxide and sewage. They will also be taxed for noise polluon. The tax rates range from 1.2 – 12 yuan per unit of atmospheric polluon; 1.4 – 14 yuan per unit of water polluon; ve yuan per tonne of coal waste; and 1,000 yuan per tonne of hazardous waste. They are determined based on each company’s operations. For example, a furniture manufacturer that earns 50 million yuan per year may report an overall tax rate of 300,000 – 700,000 yuan, or up to a two per cent increase on the factory price of its products, according to industry analysts. The new law is intended to discourage heavy-pollung industries, many which have ocked to the country to take advantage of its low costs and weak environmental regulaons. China has imposed a “pollutant discharge fee” since 1979. However, loopholes in the system have seen companies evading taxes, especially the bigger ones that contribute to the local economy. Now any tax reducon or exemption request must undergo strict approval procedures and be documented. Tackling pollution was listed as one of the "three tough bales” China aims to win in the next three years, according to the Central Economic Work Conference that concluded in December. “The launch of the environmental tax is more serious than the pollutant discharge fee system and marks China’s rst real eort to use nancial mechanisms to curb polluon,” Liang Yinlei, partner of Tax Department at Ernst & Young Greater China, said in an interview with Jiefang Daily. “Some manufacturers may buy more environmentally-friendly equipment to reduce its sewage waste in order to pay less tax.” Between January and November last year, China invesgated over 35,600 cases of environmental violaon, a 102 per cent year-on-year increase from 2016. | WIA Stock image by veeterzy on Unsplash EXPECT SIGNIFICANT CHANGES IN DUBAI’S PROPERTY MARKET: DELOITTE will be a year of change for Dubai’s real estate market. Across the hospitality, residenal, retail, oce and industrial segments, events such as the introducon of Value Added Tax (VAT) and 3D prinng will transform the property sector, according to a new report from Deloie. “Developers, operators and investors will need to navigate their way through increasing geopolical uncertainty, the adopon of disrupve technologies and the introducon of VAT. How well they do so will determine their performance in 2018 and beyond,” Marn Cooper, head of Development Strategy & Investment in Deloie’s Real Estate and Construcon team, said. The introducon of VAT in the UAE will represent one of the biggest challenges for Dubai’s real estate market. “It not only forces the real estate sector to relook at their own pracces and procedures, but those of businesses in the value chain with whom they interact,” Bruce Hamilton, a partner in Deloie’s Indirect Tax team, said. “How well the real estate market, of whom developers are a crucial sector, comes to grips with these changes could impact the sector in 2018 and for years to come.” In addition, the introduction of VAT on construction materials and professional services may cause cash ow and working capital pressures for some developers. Disruptive technologies such as 3D printing will also become more mainstream. The city is targeng for 25 per cent of new buildings to be 3D printed by 2025. Other changes to expect are a more diverse development nance market and increased connecvity with the global economy. | WIA 8 ISSUE 1 • 2018 • WOOD IN ARCHITECTURE
NEWS MENA TO MORE THAN TRIPLE RENEWABLE ENERGY USE BY 2035 Middle East is expected to more than triple its share of renewables in the power mix from 5.6 per cent (16.7 gigawas) in 2016 to 20.6 per cent (100GW) in 2035, according to a new report by Siemens. Natural gas will remain the number one power source in the region, represenng 60 per cent of installed capacity through 2035. “We expect the majority of new power generation capacity to be via highly efficient combined-cycle power plants, but renewables will also gain a substantially increased share of the energy mix,” said Dietmar Siersdorfer, CEO, Siemens Middle East and UAE. With economic diversification and populaon growth accelerang, the growth in power demand in the region—approximately 3.3 per cent per year—will be realised through efficient natural gas-fired power plants. Aside from new capacity addions, an addional 45GW could also be realised through eciencies brought about by upgrading facilies above 30 years old. By 2035, the region will require a total of 483GW of power generaon capacity, an addional 277 GW from 2016. Solar power will account for addions of around 61GW. There is signicant potenal for wind power generaon in Saudi Arabia and Egypt, but this potential is not entirely reflected in the moderate capacity addions expected. The report also highlights digitalisation as a tool to increase the eciency and exibility of energy supply, while decreasing producon costs. “Digitalisaon is an essenal part of the future energy landscape, and turning big data into smart data will enable us to be more reliable, energy efficient and cost effective,” said Siersdorfer. “However, we must remember that with greater interconnecvity, the use of data analycs and cloud technologies comes with greater exposure to cyber security threats so organisaons need to be well prepared.” | WIA WOOD IN ARCHITECTURE • ISSUE 1 • 2018 9
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