A new discussion paper published by Anglian Water on sustainable water allocation is calling for increased water and water rights trading by all water users – not simply the water companies.
The report examines how the UK can address the growing challenges of allocating and protecting its water resources in a sustainable and efficient way. Produced in partnership with Frontier Economics, A right to water? Meeting the challenge of sustainable water allocation presents an assessment of the need for reform of the existing water allocation regime. The Report says that while current arrangements have worked well so far, the challenges and uncertainties of climate change and growth mean society will need to find innovative solutions to respond to pressures on water resources in the future.
The Report’s recommendations focus on:
- improving existing processes for achieving sustainable abstraction levels by changing licensed volumes;
- removing barriers to trade to facilitate greater water and water rights trade between competing users – involving all water users, not just water supply companies.
Anglian Water says the report is intended to be an important contribution to the debate on how best to consider the decisions, processes and arrangements for how water is protected and shared between different users – termed as water allocation. With global demand for water expected to increase by 30 per cent by 2030, the company says it has an important role to play in shaping how to respond to the challenge of future water resourcing, describing the region as on the frontline of the global climate change challenge.
The Anglian Water region serves the largest geographical area of any water company in England and Wales and is the driest and fastest growing in the UK, with over a quarter of the land below sea level. The impact of climate change will be felt here first, with likely severe consequences. In January 2011 Anglian set out details of a radical sustainability platform - backed by over 100 business commitments – which aim to transform the company and put water at the heart of wider efforts to tackle climate change. The "Love Every Drop" programme includes a commitment for Anglian to halve carbon use by 2015.
The Right to Water project set out to answer a number of key questions:
• How can we ensure the environment gets the water it needs while securing a reliable public water supply?
•How can we ensure everyone understands the true value of water and that we have the right conditions for making good economic decisions and efficient investment?
The Report says that the essential question is about ‘rights’ to water and suggests that this approach may have to change. Markets have the potential to offer new approaches that will help answer these questions and balance the needs of all users by revealing value and enabling effective decision-making.
Anglian Water says that today’s water allocation arrangements may need to adapt to meet the challenges and uncertainties and makes specific suggestions for improvements that build on the current approach.
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