Global water scarcity is one of the major resource depletion crises in the world. The water demand has more than doubled since 1960 due to a growth in population and urbanization, according to the World Resource Institute (WRI). Countries in the Middle East and North Africa are highly prone to water scarcity, with 83% of their population facing extremely high water stress, consuming over 80% of their water supply. This high consumption leaves the vulnerable groups prone to droughts and water shortages. Some of the economies in the Middle East are the epicenter of water scarcity, which is rapidly intensifying while meeting the demand for domestic, agricultural, and industrial use.
The demand is expected to grow further by 2050 with Sub-Saharan Africa expected to experience a 163% surge in water consumption, dwarfing the 43% increase in Latin America. The water crisis in the Middle East and North Africa is already quite evident and is only going to worsen in the future. The WRI projects that by 2050 over a billion more people will face severe water scarcity, causing an economic loss of $70 trillion. This threat extends to food security with 60% of irrigated agriculture already under extremely high water stress. A joint effort by government bodies is required to build water infrastructure along with innovative water management technologies.
According to the United Nations, 2.2 billion people across the world do not have access to safe drinking water, while a staggering 3.5 billion suffer due to inadequate sanitation. This signifies the urgency to address this crisis, which is further accelerated by the consequences of climate change due to extreme and frequent weather events like floods, droughts, and storms. These events disrupt the water cycle, reduce availability, and also exacerbate water pollution.
Another major risk related to water scarcity is security. Nearly 40% of the total world population lives in transboundary rivers and lake basins. However, only 20% of countries have agreements for the management of shared water resources. This water security risk is more evident in Africa, with 19 out of 22 countries facing water scarcity and sharing two-thirds of freshwater resources across borders.
Potential Solutions for the Water Crisis
Desalination is one of the potential solutions to freshwater scarcity, especially for coastal regions. It is a process of removing salts and minerals from water. Reverse Osmosis is the most common technology used for desalination, which utilizes a semi-permeable membrane to remove impurities from water through applied pressure. A report titled, “The Geopolitics of Seawater Desalination” by IFRI, a thinktank dedicated to international affairs, states that the majority of Gulf countries rely on desalinated water for their residents. In the United Arab Emirates, 42% of drinking water is sourced from desalination plants which produce over 7 million cubic meters per day. Other countries such as Oman, Kuwait, and Saudi Arabia also depend heavily on desalinated water. There were nearly 21,000 operational desalination plants across the world. The Middle East is the biggest desalination market in the world and is expected to double by 2030. For instance, Kuwait, UAE, and Bahrain will have double the desalination capacity by 2030.
The Top Water Management Company in the World
To combat the water crisis across the world, efficient water management is necessary. The role of government authorities and the companies working for water stewardship is pertinent to sustainable water consumption practices. Ecolab Inc. (NYSE:ECL) is a leader in water conservation, quality, and management. The company specializes in water treatment chemicals, water filtration systems, and monitoring and control technologies, among its other key business areas. It serves a wide range of industries and government authorities including but not limited to hotels, hospitals, manufacturing plants, power generation, and retail. Its reach extends to more than 170 countries across the world.
Ecolab Inc. (NYSE:ECL) is committed to assisting its customers to conserve 300 billion gallons of water annually, which is the same as the drinking water needs of 1 billion people by 2030. It also aims to restore over 50% of absolute water in water-scarce areas by partnering with locals and organizations. In 2020, it collaborated with a global water and sanitation charity, Water.org to provide sustainable drinking water and improved sanitation to 100,000 people living in poverty in India. It also aimed to contribute over 26.4 million gallons of water to extremely high-stress river basins in Chennai, Mumbai, Konnagar, Delhi, Baroda, Jamshedpur, Kolkata, and Pune, where the company operates. The water conservation leader is also the co-founder of the Water Resilience Coalition, aimed at preserving freshwater resources in water-stressed basins.
Beyond its leadership in sustainability, Ecolab boasts a diverse suite of innovative solutions that provide improved operational efficiency and sustainability to food, healthcare, life sciences, hospitality, and industrial markets. The company provides a holistic approach to water management from advanced water treatment chemicals and cutting-edge equipment for clean water to real-time monitoring technologies. It also provides analysis, and regulatory reports while serving as a consultant to its clients, helping it retain them and also generate revenue from these services. Its program, Ecolab Water for Climate empowers businesses to convert their water conservation commitments into tangible action. The company provides analysis tools such as Smart Water Navigator and Water Flow Intelligence, helping its customers identify and implement water reduction strategies. Moreover, its 3D TRASAR technology provides real-time data for water operations which helps businesses optimize their water usage.
To achieve SDG 6 a global commitment to accessible water quality and sanitation for all, companies would require efficient water treatment and monitoring systems to reduce their water consumption and restore water into watersheds. This positions Ecolab Inc. (NYSE:ECL) as a critical partner for industries seeking to minimize their environmental impact. In 2023 alone, all of the Ecolab technologies combined, helped save over 226 billion gallons of water. Moreover, it is poised to leverage the growth of data center and semiconductor industries. Both these industries are energy-intensive and require water for cooling purposes, making Ecolab’s (NYSE:ECL) solutions more essential. These megatrends and climate change commitments have contributed to sustained growth for the company and will continue to do so.
Ecolab’s (NYSE:ECL) expertise to help industries reach water efficiency and sustainable water consumption goals along with the increase in demand for its services solidifies its position in the water management sector. The company ended the first quarter of 2024 with $412.1 million in net income, up 77% from Q1 2023. ECL has gained nearly 34% over the past year.
Now, let’s look at the 25 most water-stressed countries in the world.
Methodology
To compile our list of the 25 most water-stressed countries in the world, we consulted the World Resource Institute (WRI). We utilized the baseline water stress value from its Aqueduct 4.0 2023 rankings to rank the most water-stressed countries. It is the ratio of total water demand to available renewable water supplies. It measures water demand across domestic, industrial, irrigation, and livestock consumptive and non-consumptive uses. A higher baseline water stress value indicates more competition among users. Our list ranks the countries in ascending order based on their baseline water stress values.
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