OPORTUNIDADES Y NEGOCIOS CHILE - SUIZA

What Can Be Done?
The issue of water scarcity begs some important
questions. The overall mismanagement of water
has negated the continents abundance of it, and
with water becoming a greater source of conflict,
both government and industry need to work
together on actionable measures. What is being
done? Are we likely to see Latin American
countries follow California in imposing water
restrictions? Where do the opportunities lie?
A 2014 study by the World Bank
found that Latin American and the
Caribbean are to expect longer
droughts and extreme weather as
effects of global climate change –
such as the recent floods in Chile’s
Atacama Desert.
Chile: It has turned to renewables and some of the
country’s biggest miners, including BHP Billiton’s
Minera Escondida, are looking to desalination
plants for their water needs. Demand for
desalinaion is expected to increase at least 400%
over the next few years and some Chilean
lawmakers presented a draft bill to congress to
make the use of desalinated water obligatory in
mining processes (it lacks government support).
New mining projects in Chile are likely to be
further regulated with the recent announcement
that a new Glacier Protection Bill will be pushed
through congress.
Brazil: The Brazilian Development Bank (BNDES) is
offering government incentives to companies that
adopt and spread best practice in water use.
Mexico: In 2013, President Enrique Peña Nieto
launched a national program against drought
(PRONACOSE) overseen by the national water
commission (CONAGUA). The program consists of
drought monitoring mechanisms and measures
to prevent and/or mitigate water basin droughts.
Other countries are now following suit, including
Brazil and Turkey.
Peru: In 2014, it became the first country in Latin
America to establish a social conflict prevention
unit (UPGC) within its national water authority
(ANA) to identify and address conflicts related to
water use. It is still early days to measure success,
but the unit is already engaging with the mining
and energy sectors.
Opportunities for Business:
This brings an interesting set of opportunities for
businesses to take the lead on water scarcity and secure
their competitive advantage while there is still
time:
• Consider tax incentives and other mechanisms to
promote responsible water use (BNDES example in Brazil).
• Proactively engage with a variety of stakeholders
on responsible water resource management to
generate public awareness and identify priority
areas of work and mutual cooperation.
• Campaigns should lead to meaningful public
private partnerships around water issues that
serve to share best practice and go beyond “feel
good” talking shops.
• Companies expecting to face social challenges can
build and secure their social license by innovating
in this area while communicating effectively to key
stakeholders.
• Educate citizens about the gravity of water scarcity and
the need to consume less water on a daily basis.
• Select industries (extractive and water) can support
drought public monitoring and prevention
programs that provide capacity building and draw
on international best practice.
• Ramp-up safeguarding of crucial water supplies
(lakes, wetlands, etc.) around areas of operation
through robust conservation programs.
• Partner to reduce municipal water losses in cities
through strict monitoring and more effective
infrastructure maintenance.
Contacto Speyside:
Gabriel Real de Azúa, gabriel.real@speysidecr.com
Fotografía: Joe Licciardi
32 CÁMARA CHILENO-SUIZA DE COMERCIO