Our Scans · Water Industry · BLUF

• BLUF: The UK must immediately amend the CPTPP trade deal to exclude ISDS provisions to protect its water industry from costly lawsuits and accelerate CCUS deployment while preparing for severe climate-driven water risks by 2050; failure to act risks short- and medium-term financial and environmental consequences.
• Supporting Detail:
• Canadian investors dominate England's water utilities and aggressively use ISDS to challenge environmental policies, threatening UK financial stability.
• UK aims to scale CCUS technology, critical for decarbonizing industry and ensuring water resource sustainability amid climate change impacts.
• Climate projections show by 2050 water supply shortfalls could exceed 5 billion liters per day due to increased heat, drought, and flooding.
• Unchecked AI growth could exacerbate water demand globally, indirectly stressing UK water infrastructure.
• Implications / risks: Without ISDS exclusion, costly lawsuits could limit green policies; insufficient climate adaptation and CCUS deployment increase risk of severe water scarcity and infrastructure disruption; broader technological pressures may intensify water demand.
• Recommended action / next step: Prioritize CPTPP side-letter negotiations to exclude ISDS; accelerate investment in CCUS infrastructure and innovation; implement robust national climate adaptation plans focused on water supply resilience; integrate environmental impact assessments into technology strategies.
• Confidence level in assessment: High

Sources: (Global Justice Now), (Net Zero Technology Centre), (Engineering and Technology Magazine)