Water: Huge Economic Opportunity, Policy Dependent

Water is both a culprit and victim of climate change, as it contributes to GHG emissions in the form of CH4 and N2O, as well as is susceptive to climate change. It has historically been an overlooked sector when it comes to innovation. Water also presents a massive economic opportunity, with global economic use value was estimated at 58 Trillion USD. 

Share of emissions ~2-5%(including energy for pumping & piping)

Sources: Jones Et al., Down To Earth, Rajan et al (Groundwater Irrigation), World Bank, Working with waste: Key trends and developments in industrial effluent management. (2021, December 31). Indian Infrastructure
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Why India?

Economic Opportunity

USD 869 Bn estimated cost of inaction on agricultural water usage in 2030. USD ~8 Bn market value of treated used water in India by 2047

Water Scarcity

600 million people in India face high to extreme water stress, and the groundwater table has been declining rapidly due to overextraction.

Policy Tailwinds

  • Jal Jeevan Mission for supply of drinking water to all rural households
  • Zero Liquid Discharge and Decentralized Treatment Mandates, some of which are considered one of the strictest in the world

Stakeholder Ecosystem

Customers

  • Industries: , Power, Distilleries, Semiconductors, Data Centers, FMCG, etc.
  • Commercial & Residential: IT Sector, Hotels, RWA
  • Urban Local Bodies (ULBs)
  • Agriculture: Farmers, Farmer Producer Organisations (FPOs) and supply chain players

Policy Makers & Regulators

  • Ministry of Jal Shakti (Water)
  • Ministry of Environment Forest and Climate Change
  • Central Pollution Control Board
  • State Pollution Control Boards

Key Challenges

Agri-Water-Energy Nexus

Subsidized / free electricity for agriculture leads to over-extraction of groundwater, resulting in low crop-to-crop efficiency for India.

Low Pricing

Water supply in India is heavily subsidized, and business models will need to rely on regulations around discharge or reuse for customer’s willingness to pay.

Path Ahead

Demand

  • Increasing water demand from water-intensive sectors like data centers and semiconductors will drive innovation.
  • Need for water-independence for industries in water-scarce areas including high re-use rates, desalination and atmospheric water generation

Demand

Decentralization of wastewater treatment will drive engineering innovation for cost-effective solutions.

Find out opportunities with Water sector

Opportunities Arrow Right

Water: Solution Landscape

Commercially Scaling

Opportunities with solutions reaching commercial parity, need capital to scale.

  • STP and ETP Solutions
  • Digital Twins & Automation Systems
  • Water Intelligence
  • Leak Detection Platforms

Applied Innovation

Opportunities with solutions available but need engineering, business model or financial innovation

  • Low-cost drinking water treatment
  • Reducing Water Intensity for Agriculture
  • Methane Detection and Abatement
  • Atmospheric water generation

Fundamental R&D

Opportunities where solutions only exist in labs/pilots, or are yet to be invented

  • Advanced ZLD & Desalination solutions
  • Alternatives to Reverse Osmosis
  • Resource Recovery from Wastewater
  • Data Center Cooling Solutions

Innovation Spotlight 

Startup: Indra Water
Stage: Series A
Funding Raised: 4.2Mn
Status: Scaling Revenue
Innovation: Wastewater treatment systems using electro-coagulation

Startup: Digital Paani
Stage: Pre-Series A
Funding Raised: 1.2Mn USD
Status: Revenue Generating
Innovation: Automation of decentralized wastewater systems operations

Research Lab IIT-M
Professor: Prof. Indumathi M. Nambi
Innovation: Removes colour and organic pollutants from textile wastewater
Status: Bench-scale

Opportunities under Water Sector

Decentralized Domestic Wastewater Reuse
Water
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Decentralized Domestic Wastewater Reuse

Enabling easy-to-operate decentralized domestic wastewater treatment systems to increase reuse rates and expanding to applications beyond flushing

Economic Potential, India 2030 ~150 Mn USD
Mitigation Impact, India 2030 55 Mn Mt CO2e
Adaptation Risk Index, India 2030 9/27
Water-smart Cooling for Data Centers
Water
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Water-smart Cooling for Data Centers

Efficient and reliable cooling solutions for data centers in water-scarce area

Economic Potential, India 2030 ~9,000 Mn USD
Mitigation Impact, India 2030 15.5 Mn Mt CO2e
Zero Discharge Industrial Wastewater Treatment
Water
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Zero Discharge Industrial Wastewater Treatment

Reducing energy & cost for industrial wastewater treatment systems to meet Zero Liquid Discharge (ZLD) standards

Economic Potential, India 2030 760 Mn USD
Mitigation Impact, India 2030 11 Mn Mt CO2e