Clean water access offers flood of business opportunities

Access to clean water to quench the thirst of a growing global population is threatening to be one of the defining struggles for future generations.

Last year, the Organisation for Economic Cooperation and Development called "water security" a "major policy challenge" and in 2012, a US government report identified water as a potential "weapon" that powerful upstream countries might wield against downstream rivals.

At its heart, the debate revolves around consumption demands, and whether or not it is possible to adjust them sufficiently to avert future water shocks. Companies can play a major role by discovering new technologies and business solutions that cut water usage, said analysts, while a carrot-and-stick approach to check current trends could include water tariff increases and stiffer penalties for polluting.

"The water issue has the potential to be cataclysmic," said Michele Ledgerwood, senior associate at the Washington-based policy Centre for Strategic and International Studies.

A specialist in identifying disruptive trends, Ledgerwood said there are solutions. "We have to be optimistic and look at what can make a difference."

Water-related businesses, like waste water recycling, are part of a US$600 billion sector that is growing 7 per cent each year, according to Sarbjit Nahal, equity strategist at Bank of America Merrill Lynch.