Water Positive: Water in a Regenerative Economy Model

From a Circular Economy to a Regenerative Economy

The circular economy is an economic model that aims to optimize the use of natural resources and to minimize the waste generated in production processes. In a circular economy, materials and resources are used more efficiently and given a second life instead of being discarded as waste. Instead of following the traditional linear model of "produce, use, and discard," this approach involves a fundamental shift in the way goods and services are produced and consumed and is based on three key principles: reduce, reuse, and recycle. This is what we call the rule of the 3 R's. The concept of the circular economy has existed in various forms since the 1970s but became globally popular in the 2010s.

One weakness of the circular model is that it often focuses on efficiency and waste minimization and fails to address the root problem of waste management, where costs, implementation complexity, logistics, economies of scale, and regulatory constraints do not favor the model. While waste reduction is important, this model does not address the need to reduce the dependence on these materials in the economy.?

Since the first industrial revolution, we have produced things that improve our lifestyle and life expectancy, but which cause collateral damage and environmental impacts. The circular economy is an outdated model, since it is no longer enough. Today,?we have to repair significant damage to the environment, such as air pollution (11% of all deaths worldwide), water pollution (3.8% of all deaths worldwide), not to mention that there is not a single river in the world that is not polluted with contaminants of emerging concern, though we do not yet know what consequences this will have in the future (deforestation and depletion of natural resources). Therefore, we must turn our strategy into a regenerative model, where natural resources are used responsibly and sustainably and which allows innovative solutions to restore and regenerate ecological systems.

The regenerative economy is an economic approach that seeks not only to minimize the environmental impact of production and consumption but also to regenerate and restore natural resources and ecological systems. This approach is based on the idea that the economy and ecology are closely related, and that the health and resilience of natural systems are essential for long-term human and economic well-being. For example, it promotes regenerative agriculture, which uses sustainable agricultural practices to improve soil health and biodiversity, and encourages the restoration of damaged ecosystems such as forests and wetlands.

Graciela Chichilnisky , a renowned economist and professor at Columbia University, has been one of the main proponents of the concept of the regenerative economy. Regarding CO2 emissions compensation, Chichilnisky has developed a proposal called "Carbon Economy," which seeks to address the climate crisis by implementing a global carbon market, producing a negative balance in the carbon mass in the atmosphere, restoring the planet's air quality, and keeping the economy active. A perfect example of regenerative economics proposed by Chichilnisky is diamonds created in laboratories from CO2 removed from the atmosphere, a market that will undoubtedly grow exponentially.

Water Positive: Water in a Regenerative Economy Model

In today's world, water management has become increasingly important due to global challenges such as climate change, the growing demand for water, and water resource scarcity. In this context, the Water Positive initiative is a promising solution that promotes the restoration and regeneration of aquatic ecosystems and ensures sustainable and high-quality water supply for human, economic, and ecological needs.

By the simple definition of "mass balance," a company is considered Water Positive when its freshwater mass balance is positive, meaning there is a positive difference between the volume of freshwater it contributes to the environment and the direct or indirect consumption of water it uses to produce goods or services. Desalination and water regeneration are the most efficient alternatives to collaborate with the natural water cycle sustainably.

The Water Positive framework creates a market place similar to the carbon credit market by offsetting the water footprint rather than greenhouse gas emissions. The main difference between these two models is that carbon offsetting involves gases and is independent of where the gas is generated, while water offsetting involves other variables to consider, such as water footprint and its commercialization, water scarcity, water transport, as well as social, economic, and environmental issues.

A company can offset its water footprint and become Water Positive by producing high-quality water through desalination and water regeneration while optimizing its processes by reducing its total water consumption. It is still unclear whether rainwater harvesting can be included in this initiative, since it interferes with the natural water cycle. Scientific evidence shows that it can have both positive and negative impacts on the environment, depending on the specific system and how it is implemented. Let's imagine that the entire industry captures rainwater; consider how this can impact some surface water sources or aquifers. Another issue for debate is the compensation of water savings between companies: if one company offsets another's water savings as Water Positive, the balance for the water cycle remains negative, not to mention that this initiative can give rise to greenwashing.

Although the commercialization of the water footprint has received increasing attention in recent years, there is still a long way to go for its inclusion in water policy to be universal. A compensation market could help balance the scale and minimize this environmental impact. An example of this issue is Spain, one of the largest exporters of fruits and vegetables in Europe, which contributes to the commercialization of its water footprint. Any company with operations outside Spain that offsets its water footprint within this country will be helping to return some of the water that it has exported.

In summary, the Water Positive model is an example of how a regenerative approach can be applied to water management and how a regenerative economy can generate economic and social benefits. While the industry remains steadfast in producing goods, food, and services at a high pace, a regenerative model will allow us to have more competitive water for our society. Suppose a company offsets its water footprint with another, an operator of a desalination plant for a city. In that case, the former will meet its ESG criteria certifying that it is Water Positive, and the operator will benefit from the transaction to produce water more competitively for consumption.

The price of desalinated water has decreased substantially in recent years due to technological advances, with the cost of a liter reaching less than $0.0003. Imposing this initiative could result in offsetting the industry’s water footprint, which is much greater worldwide than the amount of water produced by desalination and reuse., This could ultimately reduce the price of water for consumption, due to the basic principle of supply and demand. Plus, desalination plants could even make money through this process.

The price of the CO2 offset market has reached 100 euros per ton in Europe due to the increase in coal usage and the decrease in renewable energy. This high price is due to the growing demand for CO2 emissions rights, which has led to an increase in the cost of energy. Additionally, this price has been driven by stricter climate policies aimed at reducing greenhouse gas emissions. Considering only the companies that have pledged to be Water Positive such as 微软 , 谷歌 , Tesla , bp , 百事 , 可口可乐公司 , 联合利华 , 亚马逊 , 嘉吉 , 星巴克 , and many more, allocating just a couple of cents per ton of purified water produced to this initiative, we could double the globally installed capacity of unconventional sources before 2030.

On March 22, the world gathered at the 2023 United Nations Water Conference, the first since 1977, to highlight the importance of water as a catalyst for achieving the Sustainable Development Goals (SDGs). Water scarcity can have a negative impact on the global economy, but if addressed properly, it can generate business opportunities and productivity improvements, promoting the idea that ensuring access to water is a smart investment and not just a moral issue.

The Water Positive approach is based on the same idea, that water is a finite resource, and that it can be restored and regenerated to ensure a sustainable supply of water without the need to transport water over long distances. There is still a long way to go from the use of words like fresh, clean, purified, and regenerated water.?Plus, we can still improve the ways in which we calculate our water footprint, we measure its commercialization, and we compare water thresholds. Nonetheless, the race for Water Positive has undoubtedly begun.

#sustainability #environment #economy #waterpositive