Major environmental challenges for the water sector

 A quick post on some of the major environmental challenges for the water sector:

1. Climate change – water is a key medium through which we feel the impacts of climate change but the sector is also energy intensive

A major challenge is achieving Net Zero carbon emissions, including Net Zero operational emissions by 2030 and for all emissions by 2050. Embedded emissions currently account for a fifth of industry emissions but are the hardest area to address and require changes in national and global supply chains. The latest costs of carbon from BEIS for use in policy evaluation could have a major impact on investment decisions based on carbon.

Mitigation options such as bioenergy and hydrogen production also have impacts on water demand and the water environment.

Adaptation is another challenge that needs to be addressed at the same time to reduce the impacts on our infrastructure. Climate change is a key driver of investment in water resources (with an additional 111Ml/d needed in the South East alone) as well as increasing surface water flooding and drainage. The CCC Climate Change Risk Assessment identifies wider impacts and investment needs – flooding, freeze-thaw and heatwaves.

2. Water Quality

England’s rivers, including 85% of the world’s rare chalk streams, are a valued resource, yet only 14% are in good ecological health. They face impacts from agriculture, the water sector and urban and transport sectors, which creates a complicated picture around who is responsible and who should pay for improvements.

More than 400,000 CSO events in 2020, investment is required to reduce the impact of these, especially in light of public pressure but it is also extremely costly.

3. Water Resources

We face the challenge of finding 720 Ml/d to replace unsustainable abstraction and improve the environment. In terms of drought, there is a1 in 4 change of a serious drought between 2018 and 2050. Work by NIC suggests greater costs to address this than are currently accounted for.

Tackling these challenges

A strategic approach is required for the water sector to address these challenges and should be:

• Developed along with conversations linked to WINEP and WISER
• Include a review of water company Net Zero plans, adaptation plans and previous environmental outcomes
• Developing approaches to Natural Capital, nature recovery and environmental net gain (in context of wider six capitals and public value)

There is a need to influence policy on national water and environmental policy, including:

• Environment Act targets
• Planning and supporting housing growth
• Farming and land management

Supporting an adaptive planning approach. 

• Given the nature and scale of the environmental challenges, particularly those longer-term linked to climate change, this supports the use of an adaptive planning approach
• Some water companies taking this approach in WRMPs but there is a need to join-up with DWMPs - nature-based solutions separately – need to join-up for efficient delivery

Supporting innovation required to tackle these challenges 

• Culture change and institutional innovations are key to enabling nature-based solutions – needed at all level within organisations as there is often disconnect and this varies widely between companies