GLOBAL RESOURCES ANALYSIS


LIMITS | WATER


Mankind has reached it maximum level of water use already in many to almost all locations. Spain has severe water shortages, the limit is reached their already. But also in Holland (worldwide known for its dealing with oversupply of water), there are regions (the Veluwe) where water resources declining (more demand than natural supply) must be imported from nearby regions. Water limits will be noticed all over the world in the next two decades. While water consumption per person is viscous rising (water use = wealth = water use) and the world population also rises. The UN says that each person will have 30% less water over 20 years than they have now. Water limits can be stretched by rain water storage and waste water recycling. The water demand of imported agriculture and industrial products is a currently severe in exposure rising subject. This water use is called virtual water use and has giant figures. Water taxation (Canada has started such a tax for the tarsand industry) will become a governmental tool in stretching water limit sometime further to the future. When the market polarity is switched from demand to supply, several nations will or tax water intensive industries directly or reinvent export taxes (buyers enough in a world where is severe oversupply of only one thing: shortage). Water is not yet a trading commodity, but will certainly become that in the next years. Starting with (from local water limits on that location perspective) not wisely build major cities like Las Vegas. And virtual water use certainly will increase the prices of imported agricultural and industrial products. Water limits are per definition local limits. Water can be exported as H2O, or (much more simple) virtual as already produced agricultural or industrial product.


Author: Gijs Graafland


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