Document summary
This report looks at China's limited renewable water resources, China's power sector reliance on water and plans for capacity expansion which will involve an increase in coal mining. It highlights how the industrial sector is doubly exposed to this issue with a consumption well over 80% of all electricity and how provincial water caps could force a change in the economic mix since 45% of China's GDP is produced in water-scarce provinces. Water and power risks need to be considered by financiers, investors and companies as a core feature of capital expenditure plans.