Water as a driving force for investors

Every time a natural phenomenon occurs, we hear calls from affected inhabitants to address the water problem. ‘Unfortunately, that’s easier said than done. Managing water sustainably is a global challenge for current and future generations. It’s a challenge that more and more companies and governments are taking on by looking for solutions to manage water efficiently,’ Sandra stresses.

The solution: retaining the water where it falls; this makes flood peaks less likely and allows the soil to act as a ‘sponge’, holding water for times of drought. ‘We aren’t there yet,’ acknowledges Sandra, but fortunately, innovative ideas and techniques are increasingly being developed.’ The Blue Deal, a plan launched by the Flemish government in the summer of 2020 to combat water scarcity and drought, marks an important step in the right direction. It encompasses a range of projects, such as smart water use, restoring and expanding wetlands such as
peat moors and bogs, softer landscaping of streets and public squares, modifying lock systems, .... the list of initiatives is a long one. Examples include the reconfiguration of the Babbelbeekse Beemden flood plain in Duffel and the Gaverbeek river in Harelbeke, which can now meander once again, greatly increasing its buffering capacity as well as its biodiversity’.

‘The measures taken under the Blue Deal are positive, but they are widely dispersed. We are still faced with the problem of insufficient buffer capacity, and use of groundwater for industrial applications has not reduced sufficiently. An overarching approach with rapid, efficient coordination was needed. In 2022, an expert panel adopted the advisory report 'Resilient Waterland', a ten-point plan for water security in Flanders’. In June 2024, four river basins were selected where the expert panel's recommendations will be implemented: around the Herk and Mombeek valley in the Province of Limburg, the Gete river in the Province of Flemish Brabant, the upper reaches of the Yser river and South and Central West Flanders.  ‘The aim is to create ‘sponge’ landscapes, with the help and involvement of local residents, farmers, landscapers and industry. At a later stage, we want to roll out this approach to other areas in Flanders under scientific guidance,’ Sandra adds.

The agricultural industry and government are also using innovation to tackle water consumption.
A pilot project focusing on wet cultivation has been launched in the Belgian town of Roeselare. Widening existing watercourses and removing concrete tubes will create space for riparian plants that can be harvested for multiple uses. As an example, cattail is a plant that can be used is useful as roughage, for animal stall bedding, in building and insulation materials and as a roofing material. Water mint can be used for seasoning, while watercress can add the finishing touch to a summer salad. The possibilities are endless, and offer an opportunity for farmers to diversify the use of their farmland.

Using artificial intelligence, farmers can tailor their irrigation to weather forecasts and plant condition, with a significant saving in time and costs. Glasshouse growers currently invest in buffer capacity not only to collect water from their own glasshouses, but also to collect water from neighbouring residents to help surrounding growers in times of drought.

Infrastructure works, for their part, protect coastal areas and rivers from rising sea levels or focus on inland water management. Construction of a combined pumped storage and hydroelectric power plant on the Albert Canal in the Belgian town of Genk is currently in full swing. This plant will generate power during periods when there is sufficient water to drive the locks, and will serve around 1500 households. During long periods of drought, the plant will pump water back when ships are transiting, so that shipping traffic will not be compromised. This plant, along with five others located in Wijnegem, Olen, Ham, Hasselt and Diepenbeek, will make the canal more resilient to the vagaries of the river Meuse,which feeds the Albert Canal.

Increasing water demand is completely at odds with decreasing supply and current water shortages in several regions throughout the world. This means that water is a growing market. Water is occupying an increasingly prominent place on the economic and political agenda.

The innovative approach to water management offers opportunities for investors who want to help support the transition to clean water. Investors are definitely interested in companies that offer water-related solutions, such as consultancies, industrial and construction companies that contribute to more efficient water management in production processes, water treatment, water infrastructure management and storm water management, and companies that are focusing on water-saving irrigation technologies for agriculture.

‘Investors looking to benefit from the growing water market are therefore well advised to cast their net sufficiently widely. Careful analysis of the opportunities and threats remains important. Not everything that glitters is ‘blue gold’,’ Sandra concludes.