Water competition poses risks to energy transition, ICMM report finds
Nearly two-thirds of global mining and metals facilities are located in areas with significant physical water risks, potentially hindering the clean energy transition, according to new ICMM analysis.
London – Almost two-thirds of the world's mining and metals facilities are situated in areas facing significant physical water risks, potentially impacting the transition to clean energy, according to new analysis from the International Council on Mining and Metals (ICMM).
The report highlights that competition for water resources is the most significant physical water risk for the sector. It found that 65.7% of global facilities are exposed to high levels of at least one physical water risk indicator, including water stress, depletion, drought, floods, and interannual variability. Notably, 38.2% of facilities are located in basins with baseline water stress that is already high or extremely high.
Dr. Emma Gagen, ICMM's Director of Data and Research, stated that water is already a fundamental issue for the mining and metals sector. Without better understanding and management of water risk exposure, there is a significant risk of constraining the energy transition. Leading mining companies are already incorporating responsible water management practices.
The analysis revealed that water risk exposure is not evenly distributed globally. For instance, in Chile, 85.8% of facilities face high baseline water stress and simultaneous interannual variability. In Africa and the Middle East, 80.7% of facilities are exposed to high or very high drought risk.
ICMM aims to provide reliable and accessible data to support more informed decision-making by policymakers and investors regarding water risk exposure as demand from the energy transition grows.