Yuanchao Xu, China Water Risk

Photograph © Debra Tan

Water Sector Challenges

30 March 2021

WATER USED BY THE US TO “GROW” GDP TO US$50,000/PAX BATH-TUB WATER- NOMICS /DAY

= 21 Each bathtub = 200 litres TOTAL ANNUAL RENEWABLE RESOURCES EXPRESSED IN BATHTUBS OF WATER/ PAX/ DAY CHINA INDIA IRAN USA

28 20 24 131

China & India have no choice but forge a new paradigm of ‘business unusual’

AVAILABILITY WATER STRESS 可用性水资源压力

GROUNDWATER DEPLETION WATER POLLUTION 地下水枯竭水污染

3 Red Lines / War on Pollution / Managing Mismatch / $$$ vs Environment

NORTH CHINA PLAIN (NCP)

>70%4 - 7 GROUNDWATER

347 million LIVE IN THE NCP 65% OF CHINA’S WHEAT 2,500m3 1,000m3 500m3 28% OF CHINA’S GDP

Water Poverty~45% ofMark China’s = <1,000m GDP from3 per the capita Dry per11 annum

SHARE OF GLOBAL RESOURCES VS. SHARE OF GLOBAL PRODUCTION

Can China continue to be the for the rest of the world ?

Water Quotas & Allocation

Virtual water trade – Desalination domestic & foreign Water Reuse Change economic, 3 RED LINES crop & industry South-to-North mixes Diversion Projects Circular Economy Preserve watersheds & increase catchment areas

Reduce Pollution Improve Water Efficiencies Water Alternatives “Disruptions”

Beautiful China = rebalancing the economy & environment

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2021, all rights reserved Dual control of water resources China’s water use cap Key area - YREB Water-nomics of the Yangtze River Economic Belt

“The Yangtze River is China’s mother river & we must protect it…”

Three Gorges Dam

Xi wants holistic development from mountains to the oceans

Greening the YREB = huge risks + opportunities

Key focus area for President Xi

Opportunity to transform the global supply chain to clean & circular

Jiangxi: Per RMB10,000 IVA Wastewater vs Water Use Wastewater per RMB10,000 IVA (tonne) 140 Manufacture of Provincial average Chemical Fibers = 100.5 tonne 120 Manufacture of Paper and Paper Products 5 Least Favorite Industries: 100 59% of industrial water use

80 Mining & 51% of industrial wastewater Processing of Non- Ferrous Metal Ores but only 7% of total industrial Smelting and Pressing 60 Mining & of Ferrous Metals Washing of Coal 40 Mining & Processing of Petroleum, Processing Coking, Processing of Nuclear Fuel 20 of Ferrous Provincial average Metal Ores = 9.8 tonne

0 0 200 400 600 800 1,000 1,200 1,400 1,600 Water Use per RMB10,000 IVA (tonne) Source: China Water Risk based on Jiangxi Statistical Yearbook 2016

Multiple innovative policies implemented to protect the YREB

Thanks

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