The Next Business Opportunity - Water Conservation

In the current world, the demand for water is fast outstripping supply. Experts have long been of the opinion that the next major war will be fought not over oil but over water. For example, in 2004, Pepsi and Coke were forced to close down plants that were seen by local farmers and authorities as depleting the water table.

Similar challenges are likely to pop up in the future. With growing populations and economies, the pressure on water sources is increasing. Pollution from industries, agricultural runoff containing pesticides and other pollutants is affecting the water available. Changes in climate will only worsen the problem, and companies in each sector will have to figure out how to do more with less. The upgrade in technology needed to cover the gap in demand and supply of fresh water - recycling, desalination and a number of other technology advancements will cost in the region of $50 to $60 billion annually for the next two decades, meaning an opportunity of over $1 trillion.

The large chunk of this spending will be from governments, but private industry will account for at least 40% of the expenditure. The investments are expected to yield returns on expenditure in as little as three years. For this, policy makers recognize that certain technologies developed by private industry are critical to manage water supply effectively.

In the last five years, a growing number of progressive private-sector companies have been increasingly making their presence felt in the area of water conservation. As they develop new technologies for water-related processes, they have also started to influence the process of water regulation to ensure positive support for developing sustainable technology in the field.

One group of companies, led by Nestle, are showing that they have a role to play in developing a sustainable model for water utilisation and in helping formulate policy for the same. A second group is focusing on technology to get more output per drop of water. With the green revolution pushing up agricultural productivity, the incremental increases in productivity of agriculture are vital, considering that agriculture accounts for 80% of water requirements. Companies working in these areas include those developing biotechnology and GM crops.

This is one team. The second is working on developing better waste treatment and water treatment, which includes waste-water recycling and desalination technologies. Theory shows that water desalination can be achieved by using only a fourth of the energy currently required. The move towards improving the technology to reach this goal is critical. The third team comprises of companies which provide users with just-in-time and just-what-is-needed information. This helps regulate the requirement for water, energy and provides higher efficiencies, thus generating more per drop.

All these efforts are slowly being knitted together into policy frameworks, leading to a consolidated effort. Though not fully operational yet, the framework will soon streamline water utilization and conservation efforts. Progressive business leaders with their positive approach to the situation are helping shape solutions and policy for the benefit of all. This will lead to a better future for all, private enterprise and the public combined. 

Source: testfunda.com