In today’s Finshots, we take a closer look at how deforestation is contributing to severe water shortages and explore how Atmospheric Water Generators (AWGs) can be a game-changer.

The Story

Can you imagine a day without water? It's hard to fathom, right? You need at least some water to get through the day, whether for drinking, cooking or washing up.

And here’s a fact that might surprise you. We need about 50 to 100 litres of water daily for basic health and hygiene. But if we’re talking about living a life with proper nutrition and consumption, that number shoots up to 4000 litres per person daily.¹

Yeah, that’s a lot.

So why are we talking about this today?

Well, water’s everywhere ― in oceans, the air, the ground, all connected in this intricate hydrological cycle. But we humans are messing it up. And the Global Commission on the Economics of Water (GCEW) has flagged this as a growing problem.²

You see, there’s blue water and green water. Blue water is what we see in rivers, lakes and underground – the water we drink, use for farming, industry, you name it.

Then there’s green water, the moisture trapped in the soil that plants rely on to grow. These plants release water back into the air through transpiration, which eventually returns to the Earth as rain.

And guess what? That green water drives nearly half the rainfall on land.

But here’s the kicker. This green water cycle is under threat, big time.

And the major culprit here is deforestation. When we chop down trees, less water gets released into the atmosphere, and that means less rain.

And this isn’t just a local issue.

Moisture from forests can travel thousands of kilometres, so deforestation in one part of the world can actually reduce rainfall in another. When massive forests are cleared for agriculture or urban expansion, we’re disrupting the whole flow of the water cycle.

But it doesn’t stop there. Rapid urbanisation is compounding the issue. More cities mean more concrete, less soil and less green water. So, not only does that mess with local rainfall patterns, but it also stops groundwater from being replenished.

Add in pollution, and we’ve got a real problem. We’re seeing a serious drop in what experts call total water storage (TWS), which is all the water in rivers, soil, underground reserves and even ice.

The result?

Floods in some places, droughts in others. This duality of water crises highlights a severe imbalance that affects nearly 3 billion people. In fact, more than half of the world’s food production is located in areas currently facing a worsening water shortage, including densely populated regions such as southern Europe, northeastern China and northwestern India.

And the consequences could ripple far and wide.

By 2050, the ongoing impact of changing rainfall patterns, rising temperatures and declining water storage exacerbated by deforestation could lead to significant economic repercussions. To put things in perspective, high-income countries may see their GDP shrink by an average of 8%, while lower-income countries could face even steeper drops, ranging between 10% to 15%.³

So, what’s the solution, you ask?

Well, the GCEW recommends restoring ecosystems, protecting forests, scaling up water-efficient technologies and adopting smarter farming practices to help balance the water cycle again.

And one fascinating solution that fits the bill is atmospheric water generators (AWG).⁴

Now, these are not some futuristic devices.

Simply put, AWGs literally pull water out of thin air.

They extract moisture from the atmosphere by cooling humid air to its dew point, causing water vapour to condense. This condensed water is then filtered and purified, meeting WHO standards for drinking water.

And the best part?

They work best in regions with high humidity, like coastal areas. For example, in places like Mumbai, which is known for its high humidity levels, AWGs have already been installed at some railway stations to churn out clean drinking water every single day. The Secunderabad railway station similarly benefits from AWGs, providing a reliable source of clean water to commuters.

Not just in India, but also in the Navajo Nation in Arizona, a region home to the Navajo people, an AWG system generates up to 200 gallons (over 750 litres) of clean water daily, helping a community that has long struggled with water access.

AWGs have also been installed around parks and beaches in Abu Dhabi so that visitors can enjoy quality drinking water on the go.

Pretty cool, right?

But AWGs aren’t just a fancy solution for cities.

They could be a lifeline for communities in crisis situations. Take disaster-prone areas, for instance. When natural disasters strike, traditional water supply lines often get disrupted, leaving people without access to clean water. In such scenarios, AWGs can provide a quick fix. Since they can run on solar power, these machines can be deployed in remote areas, ensuring people still have a steady water supply when everything else fails.

And it’s not just remote villages. AWGs could help factories reduce their reliance on groundwater, making them water-neutral.

However, like all things, AWGs do come with a catch.

They’re not cheap. For context, a mid-sized commercial unit can set you back $30,000 to $50,000.⁵

But that’s where public-private partnerships come in. Governments don’t have to foot the bill alone. Companies can chip in. AWGs can also work like insurance. Instead of requiring city municipal corporations to pay upfront for AWG farms during a crisis, municipalities can make affordable monthly payments to companies offering this service. If there's a water outage or contamination, these farms can be set up in under 72 hours, even before governments can react. Those monthly payments could help cover the costs of financing and servicing the machines.

And here’s something even better. The Ministry of Jal Shakti has recognised AWGs as an official innovation for India’s water crisis. It’s a start but a huge step toward securing clean drinking water for everyone.

So, whether it’s disaster relief, greener industries or providing rural areas with clean water, AWGs could be a game-changer. We just need the will to make them a widespread reality.

There’s hope. But we need to act now before it’s too late.

Until then…

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Story Sources: GCEW [1]; The New Indian Express [2]; Business Standard [3]; Deccan Herald [4]; World Economic Forum [5]

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