The Swiss mountains water reservoir, bottled water and the risks of a global water crisis
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1 The Swiss mountains water reservoir, bottled water and the risks of a global water crisis P. Brabeck-Letmathe Chairman of the Board of Directors, SMS and the Mineral Water Interest Group Session Berne, 1 June 2010
2 Disclaimer This presentation contains forward looking statements which reflect Management s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.
3 At the right time, in the right form, in the right place: water scarcity 2030 Projection 2030 SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 3
4 Water at the right time, in the right form, in the right place: drinking water Drinking water shortage in Poland. Wells and water pipes contaminated." Warsaw, May 2010 SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 4 Source: Polen-verseucht-Hochwasser ece
5 Water at the right time, in the right form, in the right place: drinking water Haiti 2010 SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 5
6 Water at the right time in the right form, in the right place: availability in monsoon regions Monsoon Monthly rainfall; Mangalore, India SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 6
7 Functions of water: social good (human right), environmental good, economic good As a social good: minimum requirement for survival: annual volume (2010) km³ As an environmental good: annual volume (2010) 1,200-4,200 km³ As an economic good: annual volume (2010) 4,400 km³ Vladimir Smakhtin, Carmen Revenga and Petra Döll; Taking into Account Environmental Water Requirements in Global-scale Water Resources Assessments; IWMI 2004 SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 7
8 Water worldwide: 154 river basins / regions; the sum of local overexploitation 2005 and 2030 km 3, 154 basins/regions 2.0% 4,500 Households 600 Industry 800 6, ,531 2, % 4, ,200 Groundwater Agriculture 3,100 4,531 3,534 Surface water 2005 demand 2030 demand Basins with deficits Basins with surplus Planned supply Source: Water 2030 Global Water Supply and Demand model; agricultural production based on IFPRI IMPACT-WATER base case SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 8
9 Water drawn and water consumption by sector in % of total drawn/consumed Sector Water drawn Water consumption Agriculture 66 % 93 % Industry Households Evaporation losses from reservoirs 20 % 4,20 l p.c. & day 10% 2,10 l p.c. & day 4 % 4 % 3 % Source: Igor A. Shiklomanov, "World Water Resources and their Use: a Joint SHI/UNESCO Product". SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 9
10 One of the most dire potential consequences of water shortage: food scarcity If present trends continue the livelihoods of one third of the world s population will be affected by water scarcity by We could be facing annual losses equivalent to the entire grain crops of India and the US combined. Frank Rijsberman, Director General International Water Management Institute, SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 10
11 Drinking water losses from leaking pipes Location and type of water use Vol. drawn (litres/person/day) For services (primarily energy) Manufacturing industry Losses from leaking communal water pipes Kitchen, bathroom and sanitary facilities Other household uses Drinking; preparing meals 7+ Indirect approx. 420 l l? Direct approx. 210 l From Zehnder et al EPFZ; based on data from UNESCO, Shiklomanov 1999; for losses UN and World Bank SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 11
12 Municipal water: uncovered costs, insufficient investments (OECD report) Investments into water treatment, distribution and disposal in 34 countries Requirement USD 1,040 billion per year Actually invested now USD 580 billion Gap: USD 460 billion (per year) Source: Infrastructure to 2030; OECD 2007 SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 12
13 Water in everyday life: the poorest pay many times the municipal water rates SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 13
14 The Alpine reservoir SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 14
15 The Swiss Forests Act of 1876 and 1902: for more than just beautifying the reservoir "The forest area of Switzerland must not be diminished." SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 15
16 The Alpine reservoir: sustainable economic use of water resources for centuries SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 16
17 Private water utilisation rights: a tessel ring; buying and selling water rights possible in Saxon from Staldenried VS SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 17
18 Henniez Map ECO-Broye project in Henniez Creation of a nature conservation zone partnership > 400 Ha above and beyond the legally planned conservation area! Preventive protection of water resources Collaboration with local players (agriculture, etc.) Sustainable development of agricultural practice SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 18
19 Freely accessible "buvette" in Vittel; "Pavillon de source" in Henniez SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 19
20 Mineral water: one of the first food items with additional benefits SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 20
21 Municipal drinking water and bottled water: a comparison of quantities Location and type of water use For services (primarily energy) Vol. drawn (litres/person/day) Manufacturing industry Indirect approx. 420 l Losses from leaking communal water pipes l? Kitchen, bathroom and sanitary facilities Other household uses Drinking; preparing meals 7+ P.m. of which: Consumption of bottled water (all companies, worldwide) Nestlé Group bottled water 0.08 l l Direct approx. 210 l From Zehnder et al EPFZ; based on data from UNESCO, Shiklomanov 1999; for Bottled Water: Nestlé Waters SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 21
22 Water scarcity, visible and invisible: Punjab Source: Gurnam Singh & Co, Chandigarh SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 22
23 Solution concepts: the water-saving cost curve SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 23
24 The Swiss water reservoir in the mountains, bottled water and the risks of a global water crisis SMS and the Mineral Water Interest Group Berne 1 June 2010 PBL/Ob/tv # 24
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