Water is integral to economic growth and it is central to all Sustainable Development Goals (SDG). It is also a key driver of industrial expansion, strengthens healthcare systems and is central to the survival of all living creatures. However, limited access to clean water supply, gaps in sanitation, rising pollution levels, and a rapid increase in water-intensive patterns of economic growth are presenting huge challenges to people, governments and industries.

Water is integral to economic growth and it is central to all Sustainable Development Goals (SDG). It is also a key driver of industrial expansion, strengthens healthcare systems and is central to the survival of all living creatures. However, limited access to clean water supply, gaps in sanitation, rising pollution levels, and a rapid increase in water-intensive patterns of economic growth are presenting huge challenges to people, governments and industries.

According to the United Nations, one in three people in the world do not have access to safe drinking water, while two out of five do not have basic hand-washing facility.  To address these challenges, governments, industrial enterprises and innovators are taking the lead in finding ways to safely manage water resources, and more importantly, recycle water to ensure a more sustainable future.

 

Water in industrial growth – challenges and opportunities

Inequalities in access to water has led to widening gaps in economic growth and well-being in many parts of the world. Limited access to clean water has also had a significant impact on industrial output, which is a key driver of economic growth. From paper manufacturing and power generation, to mining and food & beverage, organisations across all sectors are heavily dependent on the availability of water as a key operational resource.

According to McKinsey & Company, a growing number of industrial enterprises will find themselves exposed to water scarcity issues across different regions, particularly in countries that have witnessed the most industrial and manufacturing sector growth over the past few years. McKinsey research says that industrial water demand in China alone will grow by over 100% between 2005 and 2030, and this increased demand will impact not only China’s industrial growth, but also for countries that source products from China. 

In addition, limited clean water supply leads to heightened risk of disruption along the entire the supply chain – from raw material inputs to distribution and sales, according to global engineering and design firm Aurecon Group.  Direct consequence of supply chain disruptions could range from longer production cycles to poor quality outputs, while indirect and long-term impacts could be closure of manufacturing units and job losses.

Certainly, the link between water and industrial growth goes much deeper than this. Industrial enterprises are important users of water and they account for 16% of the global water demand as of now. By 2030, industrial water demand is projected to reach 22%. In addition, industries are often held responsible of polluting water bodies because of the use of industrial by-products and poor recycling systems.

According to McKinsey research, to effectively manage their operations amidst rising water challenges, enterprises must take proactive steps, such as implementing waste water recycling, efficient cooling systems, risk management tools and targeted programs to reduce leakages. Companies must also seek collaborations and knowledge-sharing partnerships with governments and non-governmental organisations to enable cost savings, reduce water usage and identify their exposure to water scarcity. An example would be British retail firm Marks & Spencer’s ongoing partnership with the World Wild Life Fund since 2014 to identify critical water-risk areas within its manufacturing supply chain.

 

 

 

Policy efforts to recycle water

The World Health Organisation states that over 2 billion across the world have gained access to essential sanitation services since 2000 due to targeted policy making and investments. However, this still leaves another 2 billion without access to basic sanitation, out of which 7 out of 10 people reside in rural areas and one-third in the Least Developed Countries. Additionally, about 3 billion people do not have access to basic handwashing facilities with soap and water at home – possibly leading to transmission of diseases and wider inequalities in people’s standard of living.

In recent years, governments across the world have been taking transformative steps to ensure supply of clean water. In 2017, the United Arab Emirates government announced the launch of ‘UAE Water Security Strategy 2036’ to reduce the total demand for water resources by 21%, reduce the water scarcity index by three degrees, and increase the reuse of treated water to 95%, among other things. In 2019, the Abu Dhabi government announced the launch of a ‘Recycled Water Policy’ to increase the use of recycled water in the capital city, as well as to preserve existing water resources, including drinking and groundwater in order to meet the future needs of all sectors. Highlighting its commitment to maximise water utilisation through recycling, last year the Abu Dhabi government announced that the total recycled water production in 2019 reached 301 million cubic metres, aided by the operation of 39 water treatment plants.

Another region that is working hard to tackle the challenges of water supply is the Southern Indian state of Tamil Nadu, a drought-prone region where the demand for water far outstrips supply. In collaboration with World Bank, the capital city of Chennai has established two Tertiary Treatment Reverse Osmosis (TTRO) plants to recycle wastewater and meet the non-drinking water needs for industries. The initiative will allow sewage treatment plants to recycle wastewater until it reaches the same quality as the raw water that is typically supplied to industries. With the help of recycling, the city authorities in Chennai hope to transform water as a sustainable and continuous resource, while managing growing industrial water demand and keeping pace with urbanisation.

 

Innovations to Enhance Water Sustainability

Over the past two decades, a growing number of innovators, including technology corporations, startups and universities, have been building tools to help achieve universal access to clean water. Often described as ‘digitalisation of water solutions’, innovators use fourth industrial revolution technologies such as Artificial Intelligence (AI), Blockchain and Robotics to offer a broad range of services, such as connecting people directly with their governments and decision-makers, and sharing real-time information about water contamination levels.

For instance, Blockchain has the potential to create secure platforms to record water transactions between different parties, thereby helping policy makers to analyse large amounts of data to make meaningful decisions. AI and Machine Learning, on the other hand, can be used to analyse records of existing data on water supply, and predict potential disruptions, areas of risk and operating costs.

 

Take the example of Drinkwell Systems, a water technology company that works towards supplying clean water to low-income households in Bangladesh using water ATMs and Internet of Things (IoT) enabled operations. Drinkwell also has its own patented water filtration technology, which detects and removes arsenic and iron in drinking water. Another example is Fluid Robotics, a technology startup that uses Robotics and AI to build robust wastewater infrastructure in developing economies. Fluid Robotics provides services such as in-pipe robotics mapping and assessment to detect and fix leakages in water pipes, and topographic surveys using UAVs and drones to examine challenges in water infrastructure systems.

Both Drinkwell and Fluid Robotics are part of a wider innovation ecosystem that is harnessing the Fourth Industrial Revolution to tackle water and sanitation issues affecting countries across the world. There is a growing list of technology startups that are working towards making water scarcity a thing of the past.