Page 4 - ING-Waterproblematiek Report

<< summary

Growing freshwater demand calls for
responsible usage

Industrialisation puts increasing pressure on Freshwater demand keeps on rising with fastest Estimated compound annual growth rate of
water resources freshwater usage by sector towards 2040
With 24 of the 60 largest economies in the world classified growth in industry
as emerging markets (MSCI definition), many of these Billion m3 4.4% Industrial use
countries are likely to see economic development, resulting
in the industrial sector becoming more prominent. Within 8,000 6,373 58% 2.2% Municipal use
the already growing demand for water due to population 6,000
and economic growth in general, this trend will lead to an 4,000 3,452 4,200m3: estimated 1.2% Agricultural use
expected increasing share of industrial water usage, from accessible, reliable, 2.1% Total
21% currently to an expected 38% in 2040. A large part of sustainable supply*
this will be consumed in the process of electricity
production. 2,000

This demand growth is expected to lead to serious 0 2040
constraints. The influential report ‘Charting our water Current demand
future’ of the 2030 Water Resources Group estimates
existing (accessible, reliable, sustainable) freshwater supply projected demand
at 4,200 billion m3, which leaves a wide gap of 50%
versus projected future demand of 6,400 billion m3 in Agricultural Industrial Municipal
2040. This clearly calls for responsible use of water across
sectors and businesses. Source: ING calculations, based on IFPRI, Aquastat.
* Supply estimate based on Charting our water future report:
Existing supply which can be provided at 90% reliablity,
net of environmental requirements.

ING Economics Department 4 Too little, too much / December 2015