Water Scarcity Challenges to Business

Water – so essential for living and business, from agriculture to mining and high-tech manufacturing – is under-priced. Scarcity is on the horizon due to growing populations and economic growth as well as climate change. Greater efficiency and improved storage encourage demand. Businesses recognize the risks and anticipate greater competition over allocation. “Countries such as the USA, Brazil, Argentina, Australia, India and China are big virtual water exporters, which means that they intensively use domestic water resources for producing export commodities,” writes Arjen Y. Hoekstra for Nature. “In contrast, countries in Europe, North Africa and the Middle East as well as Mexico and Japan are dominated by virtual water import, which means that they rely on import goods produced with water resources elsewhere. The water use behind those imported goods is often not sustainable.” Companies and individuals have few incentives to conserve. Improved pricing, technology, regulation and consumer awareness are needed now. – YaleGlobal