Water supply and availability could be the most pressing problem restricting China’s economic growth in the next 10-15 years, according to a new report by the Asian Development Bank. Not only are water resources limited (only about 30 percent of total water resources are available for use), but many surface and groundwater sources are suffering from severe pollution.[^1] The Chinese government is now looking to invest in new ideas to improve water quality and supply, and WRI is using its water quality trading expertise to explore the potential of market-based methods to improve water quality and increase the supply of clean water from Chao Lake, the fifth-largest lake in China.
Let me ‘fess up. The state of the environment sometimes gets me down. But to be fair, Earth’s vital signs would drive any respectable emergency room doctor into a state of utter panic. Globally, two thirds of ecosystem services, such as freshwater, pollination, natural hazard regulation, have been degraded in the past 50 years. Annual rates of growth in yields of many basic crops have declined over the past 20 years. The effects of global climate change are already being felt around the world.
But attending the Ceres annual conference this week gave me a refreshing dose of optimism. Ceres, a coalition of investors, environmental organizations, and other public interest groups, drew together hundreds of businesses, investors, and non-profits to share innovative approaches for corporate sustainability. Here are three rays of hope from the conference.
Around the world and throughout every sector of the economy, companies and investors are increasingly aware of risks associated with their dependence on fresh water. For example, a recent report by the Carbon Disclosure Project’s Water Disclosure branch looked at water-stressed South Africa and revealed that 85% of water-intensive companies in the country are exposed to water risks, with 70% expecting to face water impacts to their operations within the next five years.
A Proliferation of Tools
In response to the growing urgency of water risk, there has been a proliferation of tools, frameworks and surveys aiming to help companies, investors and others understand and respond to these water risks. The different tools and approaches provide a valuable diversity of expertise and a better understanding of the nature of water stress, but it is not always clear which tools should be used by whom, for what, and how they overlap or complement one another.
This edition of the Aqueduct News Roundup looks at recent articles and some wrap-up from World Water Day as well as the 6th World Water Forum in Marseille, France. The last several weeks have been exciting for Aqueduct, which introduced a streamlined new water risk mapping interface and comprehensive water risk maps for southern Africa’s Orange-Senqu basin,which are available online.
The stories in this edition of the Aqueduct News Roundup are focused on the growing importance of water to a wide variety of audiences, especially in the private sector.
It’s rare for water to make waves at the World Economic Forum’s annual gathering of business leaders and finance ministers.
But the most recent Davos summit was an exception. A new eye-opening report ranked water supply among the top five global risks in terms of impact– on par with systemic financial failure and fiscal imbalances.
As we mark World Water Day, the alarming statistics underlying water scarcity are worth repeating. Worldwide 2.7 billion people are currently affected by water shortages. As the global population races toward 8 billion and beyond, upward trends in food demand and economic growth promise to further strain freshwater resources, especially in the developing world. Climate change, of course, is exacerbating these water challenges.
For the most part, Ecosystem Markets still linger in the early stages of development. There is much more theoretical work to be done to set up environmental credit markets, including carbon offsets and payments for watershed services. But more pilot projects can also help these markets evolve and show how they might work in the real world.
Development pressures in the U.S. South often mean that forests are worth more cut down than left standing. In the U.S. South alone, the U.S. Forest Service estimates that suburban encroachment will convert approximately 31 million acres (approximately 14 percent of 2010 southern forest area) of southern forests to development between 1992 and 2040.
This piece originally appeared in Ethical Corporation.
There is a growing trend for big companies to use sustainable concepts as core business drivers
For decades, many companies have typically responded to sustainability challenges by pursuing incremental operational improvements. But we are beginning to see an interesting new trend – businesses using sustainability as a tactic for long-term offense, rather than just short-term defence.
Despite the uncertain economic outlook, leading international companies across diverse sectors are investing heavily in sustainable products and services. Others are making cross-industry partnerships to develop next generation products such as the elusive mass market electric car.
Some are even enhancing their business models through mergers and acquisitions that seek to address, and capitalise on, sustainability trends.
We are only a few days away from the world’s largest meeting around water: the World Water Forum. The Forum will take place this month in Marseille, France, with some 24,000 participants from the private and public sectors around the globe. There will be roughly 250 sessions and panels and 100 grassroots and citizenship events over six days. These events, and the audience of decision makers and experts attending them, provide an ideal context to showcase pioneering developments and solutions around water.
This issue brief describes analyses by the World Resources
Institute (WRI) in support of emerging payments for watershed
services (PWS) programs in two major watersheds in Maine and
North Carolina and insights gleaned from work in progress. The
three pilot initiatives...
Forested watersheds of the southern United States provide numerous services to the region. At no cost, they purify water, control flooding and erosion, and provide places for people to relax and have fun. Yet despite their value, many watersheds are under threat from development and poor land management.
“Payments for Watershed Services” (PWS) programs are one strategy to keep watersheds healthy. Through a PWS program, landowners receive financial incentives to conserve, sustainably manage, and/or restore watersheds to yield the kinds of benefits described above.