Water efficiency seen important to resilient economic growth

More efficient water use and investment in climate-resilient infrastructure are becoming increasingly important for industrial competitiveness, experts said at a recent international forum in Guilin, Guangxi Zhuang autonomous region.

The 2026 Integral Conversation, a cross-disciplinary forum on sustainable development, was organized by the Integral Institute, a nonprofit organization that brings together experts and practitioners to promote research, education and cooperation on sustainable development.

Held from Oct 29 to 31 under the theme "Water Connects, We Thrive", the forum brought together nearly 300 participants to discuss the links between water management, economic development and environmental protection.

Debra Tan, head of China Water Risk (CWR), a nonprofit initiative working to integrate water and climate risks into financial decision-making and corporate strategies, warned that global water shortages, melting glaciers and rising sea levels could disrupt infrastructure, undermine property values and expose financial institutions to broader risks.

She said water-related risks should be treated as financial concerns rather than viewed solely as environmental or sustainability issues.

The financing challenge is particularly evident in Southeast Asia. Susan Hu, the World Economic Forum's lead for nature and climate in Greater China, said the region requires an estimated $12.9 billion in water-related climate adaptation investment between 2025 and 2030, with a financing gap of about $6.4 billion.

Hu said adaptation projects often struggle to attract private capital because they are relatively small, highly dependent on local conditions and generate benefits shared by multiple stakeholders. Better risk data, project preparation and financing mechanisms could help turn adaptation needs into viable investment opportunities, she added.

Beyond managing risks, improving water-use efficiency can also support economic growth. Tan pointed to China's Yangtze River basin, where economic output has expanded while water consumption has declined, as evidence that economic growth need not be accompanied by increased resource consumption.

Scott Vaughan, international chief advisor to the China Council for International Cooperation on Environment and Development, said China's basin-wide planning and sponge-city development offered examples of integrated water management that could strengthen climate resilience.

He also noted that conventional economic indicators often fail to account for the value of natural assets, weakening incentives to protect resources essential to long-term development.

Meanwhile, the rapid expansion of emerging industries worldwide is placing additional demands on water resources. Vaughan noted that artificial intelligence data centers require substantial amounts of water for cooling, underscoring the need for greater transparency and performance standards as investment in digital infrastructure expands.

Teresa Yang, a council member of the Integral Institute, said sustainability should be viewed as a long-term investment, with returns reflected in business resilience, social recognition and a better environment for future generations.

Yang Bin, vice-chancellor of Tsinghua University Council, said that technological breakthroughs alone cannot ensure sustainable growth. Businesses and policymakers also need to rethink how they measure success, giving greater weight to long-term environmental and social outcomes alongside short-term economic performance.

Yang said green innovation was becoming a competitive advantage for Chinese companies expanding overseas, not only by helping reduce costs but also by strengthening their technological and innovation capabilities.

He called for closer university-industry cooperation, saying greater emphasis should be placed on whether research can address practical industrial challenges and translate technological advances into productivity gains.

China's five-year planning framework, Yang added, encourages long-term thinking and coordination among different sectors. He said technology licensing and deeper partnerships with overseas businesses and supply-chain partners could help translate China's green capabilities into shared economic benefits rather than short-term competitive gains.

Hau Lee, council chair of the Integral Institute, said water availability is an important consideration in global supply-chain decisions, encouraging manufacturers to adopt water-saving technologies and recycling systems while maintaining product quality.