Water Scarcity and Resource Competition Emerge as Key Risks to Global Energy Transition

## Water Competition Threatens Energy Transition Supply Chains Nearly two-thirds of mining and metals facilities worldwide are located in areas facing significant physical water risks, according to a new report from the International Council on Mining and Metals (ICMM), raising fresh concerns about the resilience of supply chains critical to the global energy transition — including those that support the maritime sector's decarbonisation drive. The ICMM report, released on 22 July 2026, maps the intersection of mining and metals operations with a range of water-related hazards, including water stress, depletion, drought, flood exposure, and interannual variability. The findings carry direct implications for the shipping industry, which is increasingly dependent on a steady supply of critical minerals — including lithium, cobalt, copper, and rare earth elements — to manufacture alternative fuels infrastructure, battery systems, and next-generation vessel technologies. ### Implications for Maritime Decarbonisation The maritime sector's transition away from conventional fossil fuels hinges on the availability of metals and minerals sourced from mining operations that are themselves vulnerable to water insecurity. Copper, essential for electrical systems aboard LNG and ammonia-fuelled vessels, and lithium, central to battery-electric propulsion, are among the commodities most exposed to water-stressed production environments. Competition for freshwater resources between mining operations, agricultural users, and local communities is intensifying in key producing regions across South America, sub-Saharan Africa, and Central Asia. Disruptions to output at these facilities could tighten supply, inflate costs, and delay the delivery of green shipping technologies at a time when the International Maritime Organization's (IMO) decarbonisation targets are demanding accelerated action from shipowners and operators. ### Broader Sustainability Context Separately, environmental science company Envu published its 2025 Sustainability Report this week, detailing progress across land restoration, public health, and food loss prevention initiatives. While not directly maritime in focus, the report reflects a broader industry trend toward measurable environmental accountability — a standard that port operators, shipowners, and maritime service providers are increasingly expected to meet under evolving ESG disclosure frameworks. ### Industry Outlook For maritime stakeholders, the ICMM findings serve as a timely reminder that the energy transition is not solely a shipping challenge — it is embedded within a complex web of upstream resource dependencies. Fleet managers, fuel procurement teams, and newbuilding project directors would be well advised to factor water-related supply chain risk into their long-term strategic planning, particularly as regulatory pressure and investor scrutiny around sustainability continue to mount. *Sources: ICMM report via PR Newswire; Envu 2025 Sustainability Report via PR Newswire.*