Water: our vital resource in check

Water use by sector

Water use is mainly distributed among the agricultural, industrial and household sectors, with agriculture accounting for 69% of global freshwater consumption. This distribution varies between regions: in Africa and Asia, agriculture consumes more than 80%, while in Europe and North America it is considerably lower. This variability underscores the need to adapt water management strategies to local conditions.

Santiago Singla, Director of Business Development at Regaber and Hidroglobal, highlights the importance of irrigation to guarantee food security, since agriculture uses the largest volume of water worldwide. Although the agricultural sector is often seen as a waste of water, Singla emphasizes that its intensive use is necessary to feed the growing population. Irrigated agricultural land represents only 17% of cropland, but produces about 40% of food, highlighting the importance of efficient irrigation in agricultural productivity.

In addition to agriculture, the textile industry and data centers, other critical sectors in water use include:

1. Food and beverage industry: It consumes large volumes of water, especially in the production of meat and dairy products, and generates effluents with organic and chemical residues that require treatment.
2. Chemical industry: A large consumer of water, especially in cooling processes, with significant challenges of contamination by toxic waste.
3. Mining industry: Demands large amounts of water for mineral extraction and processing, and poses risks of heavy metal contamination.
4. Pulp and paper industry: Known for its high water consumption, it generates polluted effluents during production processes, especially in paper bleaching.
5. Petrochemical industry: Uses water in the refining and production of petrochemicals, and generates effluents contaminated with hydrocarbons and heavy metals.
6. Metallurgical industry: Requires water for cooling and metal processing, generating liquid waste containing hazardous contaminants.

Financial sustainability and equitable access

Financial sustainability and equitable access to water are fundamental pillars to face the global water crisis and guarantee a resilient future. Howard Neukrug proposes the development of accessible and resilient infrastructure, as well as tariff structures that ensure access to water for all. It also emphasizes the importance of promoting education and community participation to achieve an efficient use of the resource. In addition, Neukrug highlights the need to take an innovative approach in the design and financing of water projects, considering the integration of multifunctional infrastructures and floating solar panels.

Glen Daigger emphasizes the importance of mobilizing investments by overcoming social and political barriers that hinder change in water management. It suggests that the adoption of new technologies, such as drinking water reuse, requires not only technological advances, but also consensus-building among the actors involved and the legitimacy of the organizations implementing these changes. Daigger stresses thatpublic perception and emotions play a crucial role, so it is essential to develop communication strategies and adaptive planning to ensure the success of innovations.

Pascual Fernández focuses on the Spanish context, highlighting water governance at the municipal level with the support of regional and national governments. It underlines the need to transform treatment plants into resource recovery plants, complying with new legal requirements and improving sustainability. Fernández also emphasizes the urgent modernization of water infrastructures and the creation of tariffs that reflect the true cost of water supply.

Recommended actions

These are the seven key recommendations that we propose from the Bankinter Innovation Foundation to face these challenges:

Paradigm shift in water use: It is urgent to adopt a management model based on the reuse and efficiency of water, promoting the circular economy. Regulators should foster regulatory frameworks that incentivize sustainable use, while startups should develop technologies that drive this transition.

Technological availability: Although advanced technologies exist, the challenge is to choose the right combination according to local needs. The key is to adapt technological solutions to each geographical, energy and social context, promoting their implementation with the support of investors and startups.

Promotion of sustainable technologies: Sectors such as agriculture and the textile industry must adopt technologies that reduce their water footprint. We underscore the importance of startups, industry and investors collaborating to accelerate the adoption of these technologies, overcoming economic and technical barriers.

Reuse and desalination: These solutions are essential in water-scarce regions, but they still face obstacles in terms of costs and social acceptance. We highlight examples such as Singapore and Israel, which have shown how the integration of renewable energies can make these technologies more viable in the long term.

Education and awareness: Lack of public awareness limits the adoption of sustainable practices. It is crucial to educate society about the importance of water from an early age. We recommend that educators, startups, and industry collaborate on educational campaigns that encourage responsible water consumption.

Water governance: Effective water management requires robust and transparent regulatory frameworks. We underscore the need for regulators to work together with the private sector and civil society to create structures that promote cooperation and accountability in water management.

Opportunity for Spain: The Bankinter Innovation Foundation sees Spain as a world leader in sustainable water management, thanks to its experience in advanced technologies and its geographical diversity. Spain must take advantage of this advantage to promote innovative policies and projects that can be exported to other regions.

The key to the future of water management lies in cross-sectoral collaboration, technological advancement and public education, all within a framework of sustainability and equity.