Dr. Daniel Vermeer gave a presentation on water supply and demand issues. He discussed how water availability varies globally and is becoming more scarce in many regions. Climate change is exacerbating water stresses in some areas. Meeting growing water demands will require boosting water productivity in agriculture, industry, and other sectors through new technologies, pricing reforms, and overcoming financial and policy barriers. Public-private partnerships can help accelerate solutions.

1. Shanghai event
January 15, 2014
Dr. Daniel Vermeer
Associate Professor of the Practice
Executive Director, EDGE Center
Duke University

2. OOvveerrvviieeww
1. Water in Nature and Society
2. Water Supply and Demand
3. The Promise of Water Productivity
4. Overcoming Barriers

3. WWaatteerr iiss ffuunnddaammeennttaall
Ecosystems Public Health
Agriculture Energy

4. Annual Renewable WWaatteerr SSuuppppllyy PPeerr PPeerrssoonn -- 11997755
Water Availability(m3/capita/year)
Extreme
Scarcity
Scarcity Stress Adequate Abundant Surplus

5. Annual Renewable WWaatteerr SSuuppppllyy PPeerr PPeerrssoonn -- 22000000
Water Availability(m3/capita/year)
Extreme
Scarcity
Scarcity Stress Adequate Abundant Surplus

6. Annual Renewable WWaatteerr SSuuppppllyy PPeerr PPeerrssoonn -- 22002255
Water Availability(m3/capita/year)
Extreme
Scarcity
Scarcity Stress Adequate Abundant Surplus

7. LLooccaall wwaatteerr aavvaaiillaabbiilliittyy –– 22001122
Water Availability(m3/capita/year)
Extreme
Scarcity
Scarcity Stress Adequate Abundant Surplus

8. WWaatteerr--RRiicchh,, WWaatteerr--PPoooorr
• Uneven distribution of water on a global scale
- 6 countries (Brazil, Russia, Canada, Indonesia, China, and
Colombia) account for half of Earth’s freshwater supply

9. China’s water supply gap

10. Impacts of climate change
Source: Dai, A. 2010. Drought under global warming: A review.
Wiley Interdisciplinary Reviews: Climate Change 2:45–65.

11. CCoossttss ooff mmiissmmaannaaggeemmeenntt
AArraall SSeeaa

12. Water-energy nexus
• Over the duration of 1
year, production of
electricity to power one
60W incandescent light
bulb would evaporate
3,000-6,300 US gallons
of water.
• In California, water-related
energy use
consumes 19% of
state’s electricity, 30% of
its natural gas, and 88
million gallons of diesel
fuel every year.

13. Virtual water
>90% of most products’ water footprint lies outside a company’s control.
Source: Wall Street Journal

14. Water demand outstripping supply

15. Discussion
So how is water like oil? How different?
Similar
•Both are commodities.
•Both are critical inputs to economy.
•Both are unevenly distributed.
•Both require massive infrastructure
and capital investment.
•Both are critical to other systems
(e.g. agriculture, energy) and highly
inter-connected.
•Both are highly regulated.
•Both are factors in global conflict.
Different
•Water is essential for life – part of
the public commons.
•Water is local; oil is global.
•Water is infinitely renewable; oil is
non-renewable.
•Water is highly undervalued.
•Water conflict tends to be erosive
rather than explosive.

16. How to close the gap?
1. Produce more crop per drop.
2. Enhance water productivity.
3. Develop new technologies.
4. Accelerate corporate efforts.
5. Overcome systemic barriers.

17. Produce more crop per drop
The Challenge: Double food production in 40 years with same land & water.
Approaches:
• Create market signals to deliver & apply
water to crops more efficiently.
• Utilize crop & production innovations to
increase yields & reduce resource use.
• Shift diets to satisfy nutritional needs with
less water.
• Consider water in global trade policy.
Source: Amy Vickers and Sandra Postel, “Boosting Water Productivity”, State of the World Report.

18. Enhance water productivity (India)

19. Enhance water productivity (China)

20. Enhance water
productivity (China)
• Most of the savings, some $24 billion,
come from industrial efficiency
measures.
 e.g. thermal power, wastewater
reuse, pulp/paper, textiles, steel.
• A basin-by-basin approach is needed
to assess the most cost-effective levers.
• Meeting growing water demand will
require a balanced portfolio of levers.
• The water-energy nexus presents
additional challenges and opportunities.
 Super-critical coal processing
 Coke dry-quenching/waste heat
capture
 Renewable energy

21. Develop new water technologies
• Global investment in water infrastructure >$400B annually.
• Pent-up demand.
1. Agriculture
• Drip irrigation
• can reduce water use 30-70% and increase crop yields by 20-90%.
• High-yielding & early-maturing crop varieties, deficit irrigation.
1. Urban/Industrial
• Desalination, sewage treatment, disinfection technologies, filter systems.
• Pervasive monitoring systems; analytics.
• Large market for water efficiency technologies in buildings.
• Integrated solutions for energy/water nexus.
1. Wastewater
• Disinfection technologies & filter systems.
• Waste separation & recycling technologies for households.
Source: Deutsche Bank Report “Global Water Markets: High
investment requirements mixed with institutional risks” (2010)

22. Watergy solutions

23. Accelerate corporate efforts
Levi-Strauss Coca-Cola Puma
Waterless Jeans Water Neutrality Accounting for Nature

24. Overcome systemic barriers
1. Financial
• Insufficient access to capital
• High upfront costs and transaction costs
2. Political
• Some interventions disproportionately affect certain constituencies (e.g. dams)
• Subsidies distort price signals, so user doesn’t see true costs.
3. Structural
• Opportunities are fragmented, and it’s difficult to measure savings.
• Limited management capabilities
4. Psychological
• Water has low mindshare, and end-users aren’t aware of benefits.

25. Discussion
"When the well's dry, we know the worth of water."
Contact:
Benjamin Franklin, (1706-1790),
Dr. Daniel Vermeer
Associate Professor of the Practice
Executive Director, Center for Energy, Development, and the Global Environment
Duke University
dv24@duke.edu
(919)660-1966
Poor Richard's Almanac