The global water sector is responsible for approximately 10% of greenhouse gas emissions, significantly contributing to climate change. As water and wastewater systems rely heavily on energy-intensive processes, decarbonizing the sector is essential to reducing emissions and meeting climate goals. To meet the UN’s 1.5°C climate target, emissions must be reduced by 42% by 2030 compared to 2019 levels. This report analyzes the current state of the water sector in Germany and the United States, exploring opportunities to accelerate decarbonization through digitalization.
Using a comprehensive approach that combined desk research with 37 expert interviews across policy, engineering, and architecture, the report captures interdisciplinary insights into how digital tools can drive sustainable water management. Field visits to water treatment facilities and stakeholder consultations enriched the analysis, providing a strong basis for identifying key trends and solutions.
The research shows that digital twin technology is being increasingly adopted to optimize water system operations, enabling predictive maintenance and reducing water losses. Machine learning models are playing an important role in forecasting water demand and identifying potential system vulnerabilities, boosting resilience and efficiency. One key finding was the difference in regulatory environments: Germany benefits from cohesive EU policies that encourage cross-border collaboration, while the US operates under more state-driven policies, creating both challenges and opportunities. Public-private partnerships were highlighted as essential for driving technological progress and balancing financial and technical responsibilities.
While digital technologies hold great potential for decarbonizing the water sector and enhancing climate resilience, challenges such as funding limitations, data privacy concerns, and workforce skill gaps need to be addressed. The report recommends:
- Expanding digital infrastructure for real-time data collection and AI-driven analytics.
- Aligning policies to support digital and sustainability initiatives at all levels of government.
- Investing in workforce training programs to build necessary technical expertise.
- Leveraging public-private partnerships and targeted funding to support the adoption of innovative solutions.
In conclusion, while digital technologies offer significant opportunities, substantial challenges remain. Overcoming these barriers is crucial to fully realize the benefits. By investing in digital infrastructure, aligning policies, developing workforce skills, and fostering public-private partnerships, Germany and the United States can reinforce their roles as leaders in sustainable water management and make meaningful contributions to global climate goals.
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RESEARCH FELLOWS: Nancy Cai Wu, Nick Kaiser, Tillmann Fuss, Chloe Kiernicki.
MANAGING FELLOW: Arianna Andino.
ADVISORS AND COLLABORATORS: Expert Advisor: Paul Berg. Partner Collaborators: Dr. Thomas Kiefer, International Affairs | Strategy & Transformation, VDI; Iana Aranda, Sr. Director, Engineering for Sustainable Development, ASME.
This research was completed as part of the 2024 E4C Fellowship program.Â
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