The Chinese environmental protection industry will enter a new stage of development as China's economic growth slows down and demand for energy and resources weakens, said industrial experts on Monday.

One day before the opening of the Chinese People's Political Consultative Conference, the China Environmental Chamber of Commerce submitted several proposals concerning the country's environmental protection policies through the All-China Federation of Industry and Commerce.

Wen Yibo, head of the CECC, said the government's efforts in eliminating outdated production capacities and enforcing strict environmental standards will provide great opportunities for the environmental protection industry.

"In the past, governments were major investors in the environmental sector while in the future, market-oriented investment will increase, especially in wastewater treatment and trash disposal systems in cities," he said.

As the public begins to have higher expectations for environmental living conditions, the industry will scale up with moreplayers entering the market.

Wen named several future trends for environmental protection companies, driven by innovation and new technology.

Investment will gradually shift from engineering equipment to environmental services. Meanwhile, environmental protection companies will extend their industrial chains to both upstream and downstream businesses.

He also predicted that some large-scale environmental protection companies will employ mergers and acquisitions to gain larger market share or advanced technologies.