When you look at the water industry in the next five to ten years, what stories do you think will capture the public's imagination and propel funding?
Climate change impacts are primarily felt through the water sector. Our analysis shows that 69% of climate change damage occurs through the water cycle. Issues like droughts can be managed with proper planning and investments in reservoirs, desalination, and water reuse. Reuse is undergoing a revolution and has a clear future trajectory.
However, managing the wet side of climate change is more complex. For instance, London's tidal storm surge protections will need significant upgrades, requiring multi-billion-pound investments. Governments need to prioritize such projects, but funding remains a challenge. Insurance industries also play a role but are often reluctant to invest in risk reduction infrastructure. Effective management of storm surges, flooding, and their impacts on sewer systems is crucial and requires substantial investment and strategic planning to mitigate long-term climate change effects.
What is your personal advice for someone needing to take action today on pressing water challenges in two completely different contexts, for example New York City and Amman, Jordan?
New York has a well-managed water system, primarily sourced from the Catskill Mountains and treated with ultraviolet light before reaching the city. This system generally provides low-cost, high-quality water 95% of the time. While conservation is important, the Catskills are not at risk of running out of water most years. Instead, the focus should be on funding climate protection efforts, including storm surge defenses and wastewater treatment. Residents should view their water bills as contributions to maintaining a beautiful, livable city and supporting necessary environmental services.
In Jordan, the situation is more complex due to limited water resources and a growing population. Amman relies heavily on groundwater, which is becoming increasingly saline. The long-term solution likely involves building a desalination plant in Aqaba and piping the water to Amman. However, this requires significant investment and fixing leaks in the existing infrastructure. Financing such a project is challenging due to the country's debt and currency risks. A combined approach of building infrastructure and fixing leaks is necessary, with gradual tariff increases as benefits become apparent to the population.
There are many pressing issues around water, but PFAS contamination has, in particular, caught a lot of attention. Can you share your thoughts on new PFAS regulations?
The U.S. regulation of PFAS is excessive. Reducing it to the detection limit is unnecessary. I'll share an anecdote from our American Water Summit, where we hosted a debate between a respected toxicologist and Erin Brockovich. The toxicologist provided evidence that PFAS, even at parts per million concentrations, is not as dangerous as believed. He argued that the US EPA's interpretation of health studies is flawed and that PFAS, being a very inert molecule, is long-lived but not highly interactive with the body.
On the other hand, Brockovich suggested that PFAS was responsible for shrinking a certain male appendage that is already a cause of major insecurity. Despite the toxicologist's evidence, the audience sided with Brockovich. This kind of rhetoric influences public opinion and regulatory decisions, though addressing issues like Flint's water crisis would have a more significant impact on public health. The challenge lies in balancing scientific evidence with public perception and regulatory actions.
What do you think is a low-hanging fruit within the water space?
Getting things right with reuse is probably the lowest hanging fruit. Reuse is the only resource always available where water is used most. It's also affordable if governments accept potable reuse.
Building separate distribution networks for non-potable reuse is prohibitively expensive. People need to understand the water cycle and accept that technology can make reused water safe. Reused water is a critical resource that hasn't been fully exploited, and changing public attitudes towards it is essential.
What is the greatest challenge facing the water industry?
The greatest challenge needing immediate action is bringing necessary capital into the water sector. Water infrastructure is highly capital-intensive, requiring seven dollars of capital for every one dollar of income. Climate change demands increased investment in water infrastructure, but current investment levels are insufficient. Governments are heavily indebted, and there is public reluctance to involve the private sector in water supply. We need a new model for financing water infrastructure to meet the urgent demands of climate change and ensure sustainable water management.
