SUMMARY
- The anticipated global water shortage by 2030 threatens the economic stability of Asian powerhouses like India and China.
- Despite progress towards clean energy, countries remain heavily dependent on water-intensive industries and coal-based power generation.
- Recurring extreme weather conditions, coupled with a persistent water crisis, can significantly impact agricultural production, thereby posing severe risks to global food security.
The threat of water scarcity is emerging as a significant element of the broader climate change crisis, with experts predicting that large Asian economies such as India and China are poised to bear the brunt of these shortages.
Asia, characterized as the powerhouse of industrialization with accelerating urbanization rates, is in dire need of water. Arunabha Ghosh, the Chief Executive Officer of the Council on Energy, Environment, and Water, shared these insights during Singapore's annual Ecosperity Week. Ghosh underscored the importance of water not only to traditional industries like steel manufacturing but also to emerging sectors like semiconductor manufacturing and clean energy transition.
Forecasts reveal that by 2030, the global demand for fresh water will exceed the supply by 40-50%. Ghosh asserts that water scarcity isn't an isolated concern but one that pervades all sectors of the economy. He implores Asian economies to acknowledge this pressing issue as a collective regional concern and strategize accordingly to mitigate the impending economic shockwaves brought about by severe water scarcity.
India, the most populous country globally, is particularly vulnerable. Despite being home to 18% of the world's population, it only possesses sufficient water resources for 4% of its inhabitants, rendering it the world's most water-stressed nation, according to the World Bank. India heavily depends on its monsoon season to meet its water needs. However, the disruptive effects of climate change, such as increased floods and droughts, have exacerbated its water shortage predicament.
China's situation is not any more comforting. Nearly 80-90% of its groundwater is unfit for consumption, and approximately half of its aquifers are too polluted for industrial and agricultural use. Despite the country's progress towards clean energy, its power grid remains largely coal-dependent - a process that necessitates substantial water input. Ghosh emphasized that if water becomes scarce, coal-based power generation will falter.
Countries in the Western hemisphere won't likely remain unaffected by the perils of this water crisis. With the intensifying climate emergency, Europe's water problem is projected to deteriorate as resources become increasingly limited. The regions experienced record-breaking temperatures in the spring, following a winter heatwave that adversely impacted rivers and ski slopes.
In Asia, economies heavily reliant on industries like semiconductors, such as Taiwan, are vulnerable. Water scarcity is not necessarily detrimental to these industries since the water can be recycled. However, the need to balance water supply between industrial usage and power generation, especially in a hydroelectric-dependent economy, presents significant challenges.
Lastly, water plays a critical role in the energy transition. Lack of water could stymie a country's transition to net-zero emissions. Alongside this, economies largely reliant on agriculture could see a significant drop in output, thereby exacerbating food security issues. As such, the value of agricultural production, subject to dry conditions, is expected to fall, impacting the global food chain.
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