HONG KONG (OOSKAnews Correspondent) — Due to what it saw as a lack of consolidated information presented in an easily understandable format on China’s looming water crisis, ADM Capital Foundation Environmental Portals last week launched the China Water Risk web portal, said Simon Lau, project manager of the China Water Risk.

“China is facing a liquidity crunch of the real kind — a water crisis which could have enormous economic and social impacts. Some of the most heavily populated and most economically productive regions like Shandong, Jiangsu, Henan, Shanxi, Beijing, Tianjin and Shanghai are water scarce. “In fact, they all have an annual per capita water resource of less than 1,000 cubic meters, which is below the World Bank water poverty line and considered by experts to pose severe constraints on food production, economic development and protection of natural systems,” Lau told OOSKAnews via email this week.

“Yet despite this, a lot of investors, businesses and even the general public seem to be unaware of this issue. “The information is out there, but one of the key constraints that we have found is the lack of a consolidated source of information presented in an easily understandable format. Hence the launch of China Water Risk.”
The website’s aim is to gather information based on expert views, research, interviews and analysis and
place it into a format that is easily digestible, he added. “It is our hope that by educating the investors, businesses and public in China’s looming water crisis, we can encourage capital flows into investments that are both more sustainable and profitable for investors long term… So it’s a win-win scenario for everyone if businesses and investors can take water risks into account in their decision-making and direct capital towards less water intensive projects.
“There will also be new and profitable investment opportunities in the water sector which helps alleviate the current water crisis. That again is winwin for everyone,” Lau said.
Some aspects of the looming water crisis in China include 11 of the country’s 31 mainland regions having renewable water resources per capita below 1,000 cubic meters.
The “Dry 11” contribute 45 percent of China’s GDP, he said, adding that they also account for 40 percent of China’s agricultural output value and 52 percent of its industrial output value.
“The impact of water on energy and food production can’t be underestimated,” Lau said. “Clearly water availability is critical to power as well as agriculture, and competition for scarce water resources is the result.
“Rising demand is making this competition even more acute… Going forward as demand rises and supply falls we will see an output crunch and choices need to be made between agriculture, power and industry,” he said.
“Which will be the priority, feeding people or producing gadgets? Some provinces may even need to restructure their whole economy as a result of China’s water risks.”
The portal can be found at www.chinawaterrisk.org.