Page 5 - ING-Waterproblematiek Report
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Hundreds of litres of water are used for each
dollar of value added
The real economic value of water is clearly not Global water intensity by sector Variances in crop types, water efficiency levels and sectoral structure
priced into production of goods today (direct use) (large subsistence farmers based in developing nations versus
Water use in terms of litres used per US$ value added industrialised farming in developed nations) creates deviations in water
provides an indication of water efficiency as well as water Litres/US$ value added (global average) usage. India is a big user, accounting for 28% of global agricultural
pricing for production within that sector. Whilst the global water usage. Countries with a high water intensity include Chile,
average for agriculture is a staggering 844 litres per US$1 High Agriculture Pakistan, Vietnam, Venezuela and Philippines with usage levels over
value added, the water intensity gap between the 2,000 litres per $ value added.
developed and developing countries is also enormous. 844
Coal is the most water intensive electricity production sector closely
For example, the Netherlands on average uses 7.4 litres for 311 Energy followed by nuclear and natural gas. Solar and wind on the other hand
US$1 value added in agriculture. These extraordinary use negligible amounts of water. In nuclear power, water is mainly used
numbers in developing countries clearly indicate that no as a cooling medium and also controlling waste and risks of radiation.
(serious) price is currently attached to water use, leading to In terms of litres used, the industrialized countries, with US and China at
significant wastage and a linear usage model. Pricing which the forefront, use by far the most water (both in absolute as well as
reflects more closely the true economic value of water relative terms).
would be a driver that leads to conservation, and a circular
model for water usage in the future. Water is used in the production of many goods. The most water-
intensive sectors are paper and textile production (rough estimate 100
11 Industrial litres/$ value added). Metals mining and base metal production consume
Low (non-energy) relatively large amounts of water for e.g. cleaning and cooling (rough
estimate 20 litres/$ value added). Water is also a relevant, but in terms of
Source: ING calculations, based on Aquastat, Oxford Economics direct usage smaller factor, in the chemicals and food & beverages
sectors. Having said that, from a supply chain perspective food &
ING Economics Department 5 beverages companies have a large role to play in improving agricultural
water efficiency.
Too little, too much / December 2015
