Understanding China's Resource Crisis
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China faces a resource crisis with critical shortages in energy, water, and food, driven by unsustainable demand and interconnected systems. The country's water depletion is occurring 25% faster than replenishment, leading to significant quality issues, while energy shortages threaten economic stability. Climate change exacerbates these problems, making sustainable resource management essential for future growth.
Understanding China's Resource Crisis
- 1. Understanding China’s Resource Crisis And its Path Toward Sustainability China’s Underappreciated Nexus of Energy, Water and Food Presented at ‘The Future of Asian Consump@on’ Green Drinks China Event, 27 May 2013
- 2. • Energy • Water • Food China’s Resource Landscape: Focus on 3 “Must-‐Have” Resource
- 3. China’s Resource Crisis: Key Take-Away Ac@on is being taken – what are business implica@ons? Demand outstripping supply, trends are unsustainable and could lead to economic & social disrup@on Parts of complex systems (ecological, human), and must be considered holis@cally Inac@on will lead to significant economic and social disrup@on
- 4. Inter-‐dependencies: Energy, Food, Water • Understanding these elements as parts of interdependent systems – both natural and human – Energy requires water • 20% China’s freshwater used for coal, increased evapora@on from hydro electricity – Water requires energy • Transpor@ng/pumping, trea@ng & hea@ng water can take up between 33%-‐75% of energy bills in many ci@es – Food requires water and energy • 65% Water used for crop-‐irriga@on • Fer@lizers are very energy intensive, also transporta@on/ preserva@on • Bioenergy crops compete with food crops for land/water • Fer@lizers for crops are pollu@ng water-‐systems from runoff
- 5. China’s 1st in Consump@on E.g.: Steel, Cement, Glass, Housing, Power, Cars, Highways, High-‐Speed Rail Systems, Airports
- 6. Energy: Supply & Demand China annually experiences power cuts and blackouts • High thermal coal prices • Drop in hydropower produc@on • Excessive demand • Ra@oning to meet regional targets
- 7. Example: Electricity demand spike
- 8. Water: Quantity and Quality China is “mining” its water about 25% faster than it can replenish A compounded problem: Low availability and low quality China’s per capita water is 2,100 cubic meters – 28% of the world average According to the Ministry of Environmental Protec@on (MEP), 25% of China’s water only fit for industrial or irriga@on. That means 75% of water does not meet the standards for fish farming and municipal use. China has capped water consump@on at 700 million cubic meters – current consump@on is at 600 million cubic meters currently Source: ADB, 2012
- 10. The Big Fear: Inflation
- 11. Energy: Consumption & Composition Source: IEA, 2011
- 12. China’s Resource Landscape: Energy China’s Energy Produc@on: 1997 China’s Energy Produc@on: 2010 Source: www.circleoflue.org
- 13. The image part with relationship ID rId3 was not found in the file. China’s Water Resources: 2002 China’s Water Resources: 2010 China’s Resource Landscape: Water Source: www.circleoflue.org
- 14. China’s Resource Landscape: Food Food produc@on, 1997 Food produc@on, 2010 Source: www.circleoflue.org
- 15. Climate Change: Amplifier Effect China loses an average of 10% of annual grain output a year to extreme weather such as floods, droughts, rainstorms, and high/low Water is the primary vector of climate change and is apparent through changing paherns of availability and extreme weather, droughts and floods. China is the 3rd most vulnerable country to Climate Change in the G-‐20 Countries (aier India and Indonesia) Climate Change makes Energy, Water and Food problems worse
- 16. Sustainability Targets of China’s 12th FYP Set at Na@onal level Province level City level Corporate level (some@mes)
- 17. Electricity sector fuel mixes 2010 2020
- 18. China’s Resource Nexus 20% water used in coal value-‐chain Biofuels compete for land w/ food 17% electricity from hydro 65% water used for irriga@on Land use changes, and soil impacts Irriga@on prac@ces quite wasteful Fer@lizers are energy intensive Conflic@ng needs of forestry Water losses from hydroelectricity Coal in N, Food in NW, Water in South Resource Conflict – Energy, Water, Food
- 19. Key points keaganghg@gmail.com +86 155 0213 6647 Resource scarcity must be considered in the context of an interdependent system Current development model is not sustainable, but big ac@on is being taken Understanding the context is the key to aligning with these strategic priori@es Being part of the solu@on can mean big profits Addi@onal Resources Report: Delloite, 2012: No Water No Energy, No Energy No Water Report: HSBC, 2012: 20 China Climate Risk QuesCons Website: www.circleoflue.org