As well as affecting biodiversity, this has social impact: only two thirds of the UK’s bathing waters were rated ‘excellent’ in a 2019 survey by the European Environment Agency, one of the lowest scores achieved by any EU nation. And more intense rainstorms linked to climate change are causing more combined sewer overflows and resulting water pollution incidents. Nitrate levels have been increasing for the past two years, leading to overgrowth of algae, which depletes oxygen levels and damages other wildlife. Indeed, things have started getting worse. Although large investment in wastewater infrastructure has improved water quality in the UK’s rivers and coastal waters over the past 20 years, only 14% of the UK’s rivers meet good ecological status under the Water Framework Directive – no improvement since 2009. The industry must also strengthen its focus on biodiversity. Anglian Water achieved more than a 60% carbon reduction with 30% cost savings across its 2015-20 investment cycle, measured against a baseline set in 2010. Carbon is a proxy for cost, with low carbon leaders in all sectors achieving a 2:1 ratio between the two. This means opting for no-build, low-build and nature-based solutions where possible: it will involve reconfiguring or optimising existing assets, changing land use and operating regimes to alter the amount of treatment required, and employing natural systems alongside engineered ones – all assisted by digitalisation, which improves companies’ ability to understand and solve problems, and deliver and manage assets.
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While working out how to meet very substantial needs, companies must focus on minimising capital carbon, as well as designing new assets for net-zero emissions in operation. Once it is clear which solutions are needed, further investment will be allowed for construction. Solutions identified are likely to include new reservoirs, water reuse, desalination and major water transfer infrastructure. Industry regulator Ofwat has allowed water companies to spend £450M during the 2020-2025 investment period in order to investigate and develop solutions to bolster the long-term resilience of regional water supplies.