Environmental Markets

Importance to Australia

There are still many who debate the future direction of the Australian climate, and the factors that are affecting it.  But there is one thing that certainly can not be debated; over the last ten years Australia has recorded average temperatures that are above the long run average, and rainfall levels that have been below the long run average.  If this trend continues, the pressure on domestic water supplies will continue to increase.

In a strange way it is both simpler and more complicated than this.  We all know that water is important; we need water to survive, and it is used by individuals, businesses and farms throughout the country.  We need it, our plants need it, and our animals need it.  But beyond the obvious need are the deeper questions about how we are going to manage our water resources in an uncertain future.  The debate over the future of Australia’s environment has clouded the fact that we need to make decisions now if we are to achieve inter-temporal efficiency in regards to the way in which our water is managed.  This means we need to find a balance between what we need now, and what we will need in the future. 

There are many factors that complicate the management of water in this country.  One of the most obvious is physical size.  Australia is one of the largest countries on Earth, and yet we have one of the lowest populations (in terms of people per square kilometre).  This means that finding ways to deliver water to all of the people who need it is extremely difficult.

The government has enlisted the aid of the CSIRO (the Commonwealth Scientific and Industrial Research Organisation) to help find better ways to manage our water resources.  They have been able to identify a number of challenges, and they are now working towards resolving these issues.  The overall goal is to increase our water efficiency ten-fold by 2025.  In particular, they have identified that 85% of all Australians live in major cities, and over the next 25 years we will see an extra 4.5 million people in the combined populations of Melbourne, Sydney, Perth and south east Queensland.  Some of the challenges that they believe are facing our urban water systems at the moment are:

1.    Water Security: In a changing climate, it is important that we can be certain about a constant supply of water for the people who live in our cities.

2.    Water Health: Australia currently has one of the healthiest water supplies in the world, but with the increasing urbanisation of our country there will be considerable pressure placed on the structures that are currently in place.

3.    Water Emissions: Collecting and distributing water is an energy intensive process.  The CSIRO is keen to find ways to reduce carbon emissions from the process.

4.    Water Infrastructure: It costs almost $5 billion every year just to maintain our water infrastructure.  As the system grows, so will the cost.  And the existing infrastructure is also getting older, which suggests costs could increase in the future.

5.    Water Institutions: The CSIRO also has a voice in the way that our water markets are structured.  This is a significant part of the distribution process, and so it can not be overlooked.

Through focused effort in these five areas, the CSIRO believes that they can improve water sustainability in Australia. 

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