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HSBC: Is there enough water to fuel China’s power expansion?

19 September, 2012 – No Water,  No Power: HSBC asks if there is enough water to fuel China’s power expansion in a newly released research report. China Water Risk was commissioned by HSBC Climate Change Centre to research and analyse the findings which form the basis of this report.

The report warns:

  • Currently 97% of power generated in China is reliant on water
  • Industry face a double whammy and nearly half of China’s GDP is earned in water-scarce provinces
  • By 2030 China plans to add more than the total installed power capacity of the US, the UK and Australia
  • Looking ahead, ambitious expansion plans for power capacity could face real water constraints
  • This is expected to drive an increased focus on water and energy efficiency in the power, industry and mining sectors
  • New central water quotas and provincial caps could force a change in economic mix and 11 Provinces at Risk (PAR 11) are identified
  • Project financiers, investors and companies should consider resource shortages and more efficient options before funding, investing and expanding

Read the report here

Read opinion: Elephants in the Room by Debra Tan which was the premise of this report… Three  power elephants: coal, financing the power build out and dams are discussed – is  a fundamental shift required?

Also check out our interview with the Deputy Director General of the China National Center for Climate Strategy Study and International Cooperation on the water energy nexus.

Financial Times: China: Running Short of Water

According to a new report from HSBC and China Water Risk, water shortages are set to play a bigger role in shaping China’s energy choice

 

Check out another report issued in September onWater Stress: Analysing Global Challenges by Zoe Knight, Nick Robins and Wai-Shin Chan

Climate change means historic water supply trends are no longer reliable with local water stressimpacting productivity. HSBC estimates that per capita water use will increase by 50% on average by 2030 for the G20.

India is the most vulnerable G20 country taking future water availability and demand drivers into account.