Water Competition Threatens Energy Transition

According to a recent ICMM report, competition for water poses significant risks to the global energy transition. The study reveals that approximately 66% of mining and metals facilities are located in areas facing high water stress. Increased demand for minerals due to clean energy systems amplifies these challenges.

The findings show that water issues vary by geography and commodity. In Chile, a major copper producer, 85.8% of facilities face high water stress. Africa and the Middle East see 80.7% of their facilities at high drought risk, while Oceania deals with significant variability in water supply.

Dr. Emma Gagen of ICMM highlights that water risk exposure needs better management to avoid hindering the energy transition. ICMM's data aims to inform policymakers and investors about potential risks, encouraging responsible water stewardship across industries and regions.