- Euromoney Water Events presents -

7th – 8th May 2014 • Grange St Pauls • London

7th – 8th May 2014
Grange St Pauls
London


Presented by
Euromoney Water Events


Focusing on Water from an Investment, Finance and Innovation perspective, our aim is to provide a platform of opportunity for key stakeholders to network, exchange investment opportunities and explore new technologies.

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The water challenge

On a global basis, 70% of water is used for agriculture irrigation, 22% is used for industries, and 8% is used by households.

At current rates of growth, demand for water may exceed supplies by 40%, and by 2030, around 47% of the world’s population will be living in areas of high water stress, according to the World Bank sponsored 2030 Water Resources Group report and OECD’s Environmental Outlook to 2030.

Governments are going to need to find US$75 trillion in order to finance investment in key water infrastructure by 2030, according to OECD, while the UN estimates that the total annual spending on water infrastructure by developing countries needs to more than double, from $75 billion currently to $180 billion.

Water Industry Investment

The global water industry is currently a $460 billion market (Citi Group Global Markets). The assets of funds focused on water and specialist water funds nearly doubled from just over $12 billion in 2010 to nearly $24 billion in 2011, according to data from Lipper, a Thomson Reuters service, analysts believe that could reach $50 billion by 2015. The size of the water market is estimated to be US$500 billion per year and growing by 6% annually. (Pictet’s water fund in Zurich)

From March 2009 through to February 2013, the S&P Global Water Index posted a cumulative total return of 177%, compared to 176% and 104%, respectively, for the S&P 500 Index and S&P 500 Utilities Index. In the near-term, the 2014 estimated earnings growth rate for the S&P Global Water Index is 15.48%, compared to 10.88% and 4.42% for the S&P 500 Index and S&P 500 Utilities Index, according to Bloomberg.

Water Infrastructure Finance

The American Water Works Association concluded that the U.S. will need to invest nearly $1 trillion over the next 25 years to simply replace faulty water pipes. Failure to do so could lead to service disruptions and more costly repairs. On a global perspective, water infrastructure spending needs could approach $11.7 trillion between 2013 and 2030, according to Janney Montgomery Scott LLC

The Nehru National Urban Renewal Mission is expected to invest $11 billion in developing infrastructure in 63 of the largest cities, with an emphasis on water supply and sanitation. The Technology Strategy Board estimates that the global water market is expected to grow from US$480bn to US$770bn annually by 2016. In Africa alone, some US$180bn will be needed each year until 2025 to provide minimum levels of water and sanitation.

Water Risk Management

Businesses are acknowledging risks around water and the impact it poses to operations and organisational performance. At the World Economic Forum 2013 experts named water risk as one of the top four risks facing businesses in the twenty-first century. 53% of companies surveyed by the Carbon Disclosure Project reported that water risks are affecting operations, property damage, higher prices, poor water quality, business interruptions, and supply-chain disruptions.

Deutsche Bank Securities estimates that the recent US drought, which affected 32 of the 48 lower states, will reduce GDP growth by approximately one percentage point. 20% of global GDP is produced in water-scarce areas. According to the International Food Policy Research Institute (IFPRI), without sustainable water management, the share could rise to 45% by 2050, placing a significant portion of global economic output at risk.

Pressure is growing for companies to build long-term resilience to water challenges and investors are boosting scrutiny of water risks in their portfolios, calling for better transparency and stronger action from companies to mitigate risks.

Sound risk-management strategies depend on solid data. This year the CDP Water Disclosure questionnaire is issued on behalf of 530 investors representing $57 trillion in assets and the CERES Aqua Gauge, which is backed by investors managing over $2 trillion in assets, provides a benchmark for corporate water performance. Enabling investors to assess, scorecard and compare companies on their management of water risk, combined with more than 90 signatories of the United Nations Global Compact’s CEO Water Mandate. The message is clear: developing strategic responses to water-risk is key to maintaining competitive advantage.

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Water, Waste and Energy

The global market for wastewater treatment delivery equipment, instrumentation, process equipment, and treatment chemicals will increase at a 10.4% compound annual growth rate (CAGR) to exceed $93 billion in 2016, from a 2011 value of nearly $57 billion. The most rapid growth will occur in the delivery equipment product group. This sector is estimated at $20 billion in 2011 and is expected to increase at an 11.4% compound annual growth rate (CAGR) to reach $34 billion in 2016.

The treatment chemicals group, is expected to grow at 9.4% (CAGR) representing solid growth. This sector is estimated at $12 billion in 2011 and is expected to reach nearly $19 billion in 2016. (Source: BCC Research)

Some WWTPs produce 100% or more of the energy they need to operate and WWTPs collectively could potentially meet 10% of the national electricity demand. (Source: Water Environment Research Foundation) On the wastewater side, the energy potential contained in wastewater and its biosolids/biogases exceeds by 10 times the energy used to treat it. (Source: Water Environment Research Foundation)

According to a growing number of investors, the market for water could be the next big investment opportunity of the 21st century. Over the past few years, trade in water has boomed. The Australian industry is now valued at up to $27 billion, while last year alone over $3 billion in water rights were traded in the open market.

Water Energy Food Nexus

The need for more energy and food will continue to grow, in line with global demand. Water is integral to meeting these demands. Agriculture uses 70% of the world’s water to irrigate only 20% of the world’s cropland, yet produces 40% of all food. The energy sector withdraws 8% of all the worlds’ water, and can reach up to 40% as in the USA. Food and energy production are dependent on the access to water resources.

With growing demand and shrinking availability the challenge to develop and mobilize ways to produce and deliver water to fields, powerplants, industries and cities requires a collaborative approach.

By 2050, global population is expected to be 9 billion people, 70% more food will be needed. By 2030 we will need 30% more water, 40% more energy, and 10% of existing crop land for biofuels.

The Innovation2Water Showcase Exhibition enables companies to promote their technologies, services and innovations. Reserve a stand and exhibit at Innovation2Water Showcase to ensure you engage with potential investors and senior decision makers.

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