Water interdependency stress-tests

In a world that can no longer take ample, secured and unpolluted water supplies for granted, we help our clients to manage their water risks to reduce proactively their costs and exposures and/or not miss any wastewater reuse opportunity.


Water is the underlying and unavoidable input of every good and services: water is indeed the most traded goods in the world.


 

We take into account domino effects of water risks and externalities such as:


  • volume and periods: flood occurrence, water scarcity, upstream storage, etc.
  • availabilities versus demands or needs
  • water interdependencies/nexus
  • quality: temperature, contamination, etc.
  • infrastructures: water rights, digital monitoring, operation status, etc.

For commodities, the water risks are weighted with the importance of the volume or quality of the productions in the affected areas, the water related risks for transports for the replacing volumes (e.g. if rivers are facing droughts, costs can be higher because of vessels draft restrictions), the alternative commodity less water intensive (e.g. beet sugar needs less water than cane sugar), …etc…

 

Example:


Water energy nexus
Water use for fracking shale gas reduces availabilities for cotton cultivation.

Water health nexus
his situation can put more pressure on water overuse by other cotton growers and/or water and soil pollution by textile producers using chemical products but not guaranteeing related wastewater cleaning.

Water food security nexus
Water pollution does not recognize any border. In consequence, sea fishing possibilities are reduced. This means that fish e.g. in Africa are becoming more expensive reducing access to source of protein and therefore increasing health and development risks.


Negative domino effects can be cut thanks to Prana Sustainable Water’s W2AREX® solution bringing benefits and returns for all market participants.

 

graph-07


A cotton T-shirt has an average water footprint of 2’700 litres (www.waterfootprint.org).
Cotton traders or trade finance or cotton users can prioritise cotton crops irrigated partially in priority with for treated effluents footprint if sourcing from a region lacking effluents treatment plants.
The cotton farming area will then get treated wastewater, improved access to sanitation, dignity and energy. The cotton will then be invoiced with the deduction of water input. 
A community near a cotton field having supplied their wastewater transformed partially for cotton irrigation could order for example rice with the smart metered value of their wastewater transformed into energy, fertilisers, clean water, bio-cements, polymers, …etc…
In addition to more reliable sourcing, the bio-refinery infrastructures can therefore be also interesting for the commodity traders or finance for sales and solvency guaranteed via the allocations of the benefits thanks of wastewater valorization.



More generally, decentralized treatments of sludge can generate release pressures on strategic resources e.g. for energy and resilience. Treated wastewater buffer stocks can also be used as energy storage and/or for insurance purposes (e.g. fires, weather/parametric risks) and/or to reduce commodity volatilities. 



Water Footprint

The Water Footprint (see ISO 14046) measures the consumption and contamination of freshwater resources.



Water Risk Atlas

Water Risk Atlas



Water Risks for some commodities


www.wri.org


This map shows baseline water stress in major crop producing areas. Baseline water stress is measure of demand and supply for water in a given area, and is calculated as the ratio of local water withdrawal over available water supply.



Water Impact Index and vital needs

Are water allocation according to the water exploitation index to enable ground water recharge and/or in priority for basic human needs (e.g. 2000 liter /day/capita as minimum water footprint for dignity with 1 liter water for 1 calorie + water footprint for clothes, housing, etc.)?