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Energy Transitions: Local Water Concerns and Climate Impacts

Gunda, Thushara; Williams, Michelle; Lowry, Thomas S.

This report summarizes important nuances in local water concerns and potential climate impacts that could influence the roll-out of technologies associated with energy transitions. Current investments in clean energy technologies are very high, which is driving a lot of investments in related manufacturing (i.e., hydrogen, solar, wind, and batteries) and mining (e.g., lithium, copper, and graphite) around the world. To understand how water and climate dynamics could be influencing these activities, we conducted a phased literature review for three countries: China, Germany, and France. China was selected due to its global dominance in manufacturing of solar panels, batteries, and electrolyzers as well as production of rare earth elements while Germany and France were selected due to their emerging leadership in energy transitions-related manufacturing within the European Union. For each of these three nations, we identified areas where manufacturing is occurring within the country and then evaluated relevant water resources and climate impacts. Multiple sources were consulted for this review, including BloombergNEF, international reports, industry sources, peer-reviewed literature, climate data, and media coverage.