China is encouraging innovative investment in wastewater business
Water resources are not spread evenly in China and are often not where they need to be for industrial, energy, and agricultural purposes. Roughly 80% of China’s freshwater are located in the south. However, nearly 40% of agriculture, 50% of power generation, and almost half of industrial activity is in the north.
The country is aiming to substantially increase unconventional water resources, including reuse and desalination. Total water related spending is expected to be around USD100 billion annually, with over 80% directed towards drinking water and the balance for sewage and wastewater reuse. Further, China is encouraging private capital to participate in the wastewater investment opportunity and courting international partnerships and technology.
Beyond Beijing, Shanghai and the 13 other cities with populations in excess of 10 million people, China is welcoming innovative investment initiatives to better organize capital for smaller cities and rural areas. The World Bank has started facilitating syndicated loans for these smaller areas, allowing them to reach the capital markets and access financing more quickly.
China’s rapid ascension as a global leader in renewable energy provides precedent for the country to realize opportunity out of environmental challenges. The same is possible for China in overcoming its water challenges. It also opens opportunities for foreign companies specialized in this field.
Source: China Water Risk