Water Crisis Looms: Demand to Outstrip Supply by 40% by 2030

The water sector is at a crossroads, with demand projected to outstrip supply by 40% by the end of the decade. This stark reality has galvanised governments, businesses, investors, and international agencies into action. The recent international summit on water underscored the urgency of the situation, with the United Nations revealing that around 30% of the world’s population still lack reliable access to clean drinking water. One quarter of the world’s population live in nations with extreme water stress, defined as using 80% of supply annually or more. This is not a distant problem; it is here and now, with water theft becoming a reality in places like northern Chile, where gangs siphon off water intended for irrigation, harming agricultural output.

The scarcity of fresh water is alarming. Only 3% of the world’s water is fresh, much of that is in the form of glaciers, which are melting, and there is scarce rainfall in many heavily populated areas. In wetter parts of the world, pollution of supplies, such as nitrates from agriculture ending up in rivers and groundwater, is a significant problem. No commodity is of more fundamental importance than water. It is limited in supply, too often polluted, and may be treated less respectfully than minerals of lesser importance such as gold. Recent developments show that humans are collectively stepping up as responsible custodians of this precious resource.

Middle Eastern countries face some of the most significant challenges in water supply but have also made some advances. The scarcity of water in the desert and rising temperatures due to global warming are among the contributory factors. For decades, with rapidly rising populations and urbanization, it has been clear that groundwater sources were inadequate, so desalination plants are essential. In Qatar, domestic water consumption doubled between 2010 and 2020. Annual use of water in agriculture rose from 140mn m3 in 1990 to 296mn m3 in 2016. In 2010, there was only 48 hours’ worth of supply in reserve. The Water Mega Reservoirs project, which began in 2015, involves the construction of 24 large concrete reservoirs. Loss of water through leakages in the system has been sharply reduced. Qatar is now one of the most water-resilient nations.

Other regions have followed similar policies. Rising temperatures in the Mediterranean threaten desertification. In Barcelona earlier this year, supplies fell to below 16% of normal capacity, resulting in rationing. In June, 14 municipalities in Greece declared a state of emergency over water scarcity. Islands where villas and hotels have been built for tourists have not always had water supply scaled up sufficiently, which has meant water rationing and sometimes having to import water in ships. There are 57 desalination plants in Aegean islands, twice the number of a decade ago. Some islands are mostly or entirely dependent on them.

However, desalination is not a panacea. It is an energy-intensive process. Production is expensive, and supply is often subsidised, resulting in fiscal problems for the state. The process results in concentrated brine as a by-product which damages marine ecosystems if simply discharged back into the sea. A circular economy approach can offset or mitigate the impact. Qatar Energy and partners have invested QR1bn into a process for recycling waste water from desalination, extracting valuable salts. As well as recovering salts, technological advances for the desalination industry cover digital control systems to enhance energy efficiency and self-cleaning membranes that prevent scale.

Investors are belatedly turning their attention to water technology. Innovation and technology in the handling, recycling and general management of water is emerging as an issue of comparable or even greater importance than clean energy. There is only one ‘unicorn’ in the field – the Boston-based firm Gradiant, which develops technologies that enhance an efficient supply chain for the water industry and reduce pollution. There are nascent technologies to extract the moisture from mist and overnight dew, with significant potential in areas with low rainfall.

Humans are capable of considerable thoughtlessness and waste – but also ingenuity and adaptation. Nowhere are these attributes more important than in the area of water conservation and supply. The water sector is ripe for disruption, and the stakes are high. The developments in Qatar and other regions show that with the right policies and technologies, water resilience is achievable. The question is, will other nations follow suit, or will they wait until the taps run dry? The time for action is now, and the water sector is poised for a revolution.

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