Water in a Low-Carbon Economy: Resource Scarcity, Climate Change and Business in a Finite World

The document analyzes the water-energy nexus, highlighting that while low-carbon technologies are essential for reducing greenhouse gas emissions, some may require as much or more water than fossil-fuel generation. It distinguishes between water withdrawal and consumption, noting that cooling systems (once-through, wet-recirculating, and dry) significantly influence water demand. A California case study demonstrates that a standard Renewable Portfolio Standard (RPS) can reduce emissions and withdrawals but may increase water consumption; however, a strategic 'RPS+Technology' approach—prioritizing solar PV over solar thermal and adopting dry-cooling and carbon capture and sequestration (CCS)—can simultaneously reduce emissions and water use.

• Low-carbon electricity technologies are essential for reducing greenhouse gas emissions, but some may be less viable in water-constrained areas because they can use as much or more water than fossil-fueled generation.
• Climate-related water constraints already impact electricity production, such as a 2006 drought in Uganda that cut hydropower capacity by one-third and a 2003 heat wave that led France and Germany to curtail nuclear power generation, with 4,000MW curtailed in France alone.
• Thermoelectric power plants, which account for 81 per cent of global generation, rely heavily on cooling; in the U.S., they represented 41 per cent of freshwater withdrawals in 2005.
• Dry-cooling systems can reduce water consumption by more than 90 per cent compared to wet-recirculating systems, although they are more expensive and less efficient.
• In California, a 'business as usual' (BAU) scenario by 2020 would see greenhouse gas emissions rise by 13 million tonnes CO2e, water withdrawals increase by 1,423 million cubic metres (Mm3), and water consumption increase by 97 Mm3.
• California's standard Renewable Portfolio Standard (RPS) is projected to drop emissions by 1.9 million tonnes CO2e and keep water withdrawals nearly constant (rising by 2.6 Mm3), but it increases water consumption by 219 Mm3 due to higher use of solar thermal, biomass, and geothermal power.
• The 'RPS+Technology' scenario for California—which shifts the solar mix toward photovoltaics, adopts dry-cooling, and uses carbon capture and sequestration (CCS) in 17 per cent of natural gas capacity—reduces water withdrawals by 3,339 Mm3 and limits consumption increases to 28 Mm3 while achieving deeper emission cuts than the standard RPS.

APA

Stockholm Environment Institute (2012). Water in a Low-Carbon Economy: Resource Scarcity, Climate Change and Business in a Finite World. https://www.sei.org/mediamanager/documents/Publications/Climate-mitigation-adaptation/SEI-PB-2012-3C-Water-for-Energy.pdf

Chicago

Stockholm Environment Institute. Water in a Low-Carbon Economy: Resource Scarcity, Climate Change and Business in a Finite World. 2012. https://www.sei.org/mediamanager/documents/Publications/Climate-mitigation-adaptation/SEI-PB-2012-3C-Water-for-Energy.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Water in a Low-Carbon Economy: Resource Scarcity, Climate Change and Business in a Finite World |date=2012 |url=https://www.sei.org/mediamanager/documents/Publications/Climate-mitigation-adaptation/SEI-PB-2012-3C-Water-for-Energy.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2012water, author = {{Stockholm Environment Institute}}, title = {{Water in a Low-Carbon Economy: Resource Scarcity, Climate Change and Business in a Finite World}}, institution = {Stockholm Environment Institute}, year = {2012}, url = {https://www.sei.org/mediamanager/documents/Publications/Climate-mitigation-adaptation/SEI-PB-2012-3C-Water-for-Energy.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }