Water shortages could derail the UK's net zero plans, a study warns, highlighting a growing crisis in England's water management. The Environment Agency's warnings of a potential widespread drought next year have sparked tensions between the government, the water sector, and its regulators. Research commissioned by a water retailer reveals that water scarcity could hinder the UK's ability to meet its net zero targets, with industrial growth potentially pushing some regions into water shortages. The legally binding target of reaching net zero greenhouse gas emissions by 2050 and a commitment to a clean power system by 2030 with at least 95% of electricity from low-carbon sources are at stake. However, the study concludes that there won't be enough water to support all planned carbon capture and hydrogen projects, raising concerns about the UK's water supply and its ability to meet the demands of decarbonisation efforts. Durham University's analysis, funded by the water retailer Wave, assessed plans across England's five largest industrial clusters, predicting significant water deficits in regions like Humberside and the north-west. The research highlights the potential for water shortages in areas like Anglian Water and United Utilities by 2030, with deficits reaching 860 million litres per day by 2050 due to decarbonisation efforts. However, a United Utilities spokesperson challenges the deficit figures, arguing that regional water management plans already account for hydrogen demand. Anglian Water acknowledges the deficit but attributes it to Ofwat's restrictions on spending, hindering their ability to secure future supplies. The company also criticises the exclusion of business demand from strategic planning, which weakens the system's resilience and limits its capacity to support economic growth. Water UK confirms that water companies' plans don't consider the needs of large projects, blaming the Environment Agency for the oversight. The government, however, reassures that hydrogen projects are being developed with sustainable water-sourcing plans and abstraction licences. Despite these efforts, Dieter Helm, a professor of economic policy, argues that England's water system is outdated and poorly managed, lacking real-time data and a dedicated catchment regulator. He proposes a data-driven approach, where every drop of water is measured and reported, and a new, independent regulator holds the data, ensuring transparency and accountability in water management.
