Asia Water-nomics: More GDP with Less Water & Pollution Wednesday 29 August 14:00-15:30 CHINA WATER RISK is an initiative dedicated to addressing business and environmental risk arising from the country’s urgent water crisis. We aim to foster efficient and responsible use of China’s water resources by engaging the global investment and business communities, civil society and individuals in understanding and managing China’s water risk. ACT NOW, visit us at www.chinawaterrisk.org NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Water-nomics & Trade-offs 2015 2016 August January June September NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved G20 Water-nomics … 1 2 5 4 6 3 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved G20 Water-nomics … NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Use other people’s water … NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Asia’s real liquidity crunch… Asia’s future = business unusual / Local risks = global disruption NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Rivers are important for Asia Case Study: the Yangtze River Drinking water safety Floods Ecosystem degradation Eutrophication Pollution The need for basin-wide strategy to manage water & economy Photos © Feng Hu NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Yangtze River Economic Belt (YREB) 584 million (2014) RMB28 trillion (2014 GDP) Source: China Water Risk based on National Statistical Bureau of China Base map data are from Data Center for Resources and Environmental Sciences, Chinese Academy of Sciences NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved YREB’s strategic importance to China Source: China Water Risk based on National Statistical Bureau of China Photo © Feng Hu NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Development varies across sub-basins 2014 & 2016 GDP Per Capita (Unit: RMB) Yangtze River Economic Belt (YREB) Regions vs National Average 120,000 100,000 95,458 81,055 80,000 Latvia 60,000 53,935 45,594 46,629 39,253 39,336 40,000 33,525 2014 2016 Bulgaria 20,000 Serbia 0 YangtzeY RRiverD Delta Middle Reaches Upper Reaches National Average (YRD) Source: China Water Risk based on National Statistical Bureau of China NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Water-nomics performance also varies … 2014 YREB Regions: Per RMB10,000 GDP Water Use and Wastewater Discharge Water Use Per RMB 10,000 GDP (m3) Middle Reaches 140 National Average =11.3 tonne 120 UPGRADE National Average 100 =95.8 m3 Yangtze RiverYRD Delta (YRD) 80 Upper Reaches 60 PROTECT & 40 UPGRADE 20 ADVANCE 0 8 9 10 11 12 13 Wastewater Discharge Per Source: China Water Risk based on National Statistical Bureau of China RMB10,000 GDP (tonne) NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Greater differences across provinces The worst performer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Choose the right industry mix … 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 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved There’s always room for improvement Yellow River Shandong Jiangsu Base map data are from Data Center for Resources and Environmental Sciences, Chinese Academy of Sciences NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved China’s multiple stratagems ... Water Quotas & Allocation Permits trading & eco-compensation Desalination Change economic mix Water Reuse & upgrade industries 3 RED LINES Circular South-to-North Economy Diversion Projects Virtual water trade – Preserve watersheds & domestic & foreign define ecological protection redline zones War on Pollution Improve Water Efficiencies Government Legislation Reform RMB 6 trillion war chest to hold the 3 Red Lines on Water by 2020 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved New website & new report NEW WEBSITE & NEW DESIGN! Stay tuned for CWR’s September newsletter! NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Decisions today for water tomorrow 2017 reports & publications NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION © China Water Risk, 2018, all rights reserved Disclaimer Information provided has been obtained from, or is based upon, sources believed to be reliable but has not been independently verified and no guarantee, representation or warranty is made as to its accuracy or completeness. Information contained in this document is current as of the date specified above and is subject to change without notice. Information contained in this document relating to investments, valuations, unrealised data, and projections is indicative only, and has been based on unaudited, internal data and assumptions which have not been independently verified or audited and are subject to material corrections, verifications and amendments. 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