Water Scarcity Threatens Northern Mexico's Energy Growth: WEF

Northern Mexico's economic expansion, particularly in manufacturing and energy sectors, faces significant challenges due to severe water scarcity, says the World Economic Forum. The region's ability to support its energy transition is at risk, necessitating integrated water, energy, and climate policies. Projects in areas such as shale gas extraction, semiconductor manufacturing, and data centers are directly impacted by water limitations, affecting sustainable development.

The region experiences high water stress, with more than 45% of its aquifers overexploited and low average rainfall. Compounding these issues are fragmented water governance, aging infrastructure, and escalating droughts exacerbated by climate change.

To address this complex nexus, recommendations include integrating water considerations into energy and industrial strategies. New energy infrastructure projects require water impact assessments, and there is a call to prioritize water-efficient technologies within the energy sector. Developing a workforce skilled in the water-energy link is also suggested. Additionally, modernizing water governance and pricing mechanisms, along with expanding climate coordination between the United States and Mexico, are deemed crucial steps. These measures are presented as essential for a sustainable future that supports both innovation and cross-border cooperation.