Circular Economy Could Annually Save 11% of Water

Adapting the principles of circular economy to water management could result in saving 11% of annual global water demand, according to the research of the Dutch multinational banking group ING.

Unlike linear economy which practices the 'take, make, dispose' model, circular economy is focused on reusing materials and generally reducing waste. It aims at greater productivity of resources in industry, reducing waste and preventing pollution. Materials are divided into two groups:

1. biological nutrients which are safely put back into the environment
2. technical nutrients which are restored to circulate the production system.

Moreover, circular economy promotes the use of renewable resources and energy over fossil fuels.

Circular economy is a model to redirect global development from finite resource consumption. It is restorative and regenerative.

Adapting the circular economy to the water sector means strategic, systematic planning.

The water sector is already quite good at generating renewables and is working on reducing the energy consumption, but truly applying the circular economy approach would mean collaborating with other energy users and generators along with other cross-sectors.

Internationale Nederlanden Groep (ING), a Dutch multinational banking and financial services corporation has analyzed the potential of applying circular economy to water management in six different regions, including California, Netherlands and Bangladesh.

The report  states that water shortages could vastly be reduced by water reuse.

Due to current droughts in California, it was taken as an example. It is estimated that in the period of 2017-2050 water shortages could drop by 90% with the application of circular economy principles.

Circular economy could open new opportunities in efficient irrigation techniques, sustainable water use, treatment and recycling.

The predictions show global fresh water demand will rise by 2% every year in the upcoming decades. If no changes are made, the demand will overtake the water supply by 35% in 2040.

The research suggests water reuse could be an alternative to desalination which greatly affects the ecological footprint.

A number of companies is already aware of the risks of the lack of clean water supply and are working on efficient water usage and replenishing the water back to nature.

The focus of circular economy in the water sector has the most promising potential in bioresources – applying sludge as fertilizer in agriculture, nutrient recovery, better energy management – e.g. using wastewater for heating…

“There is now evidence which shows that clients who are leading in sustainability are more innovative, show better financial performance and have better credit ratings,” says Leonie Schreve, Global Head Sustainable Lending at ING. “Directing more assets and capital to sustainable businesses therefore creates a healthy portfolio for the banks and helps them to facilitate the transformation to a low carbon economy. As a result, sustainability now is a business opportunity for the financial industry.”