Transforming water management in the face of climate change: the time to invest in smart solutions

by Alexander Freier

1. The global link between water and climate change and the United Nations SDG 6

Water is a decisive factor in the interaction between climate change, food security and sustainable development. In this context, the United Nations' sixth Sustainable Development Goal (SDG 6) – ‘Ensure availability and sustainable management of water and sanitation for all’ – plays a central role. This goal requires concrete progress by 2030 in terms of water quality, efficiency of use and protection of water ecosystems.

But SDG 6 goes beyond technical infrastructure: it calls for integrated water resource management that coordinates key sectors such as agriculture, industry and technology.

The UN-Water strategy emphasises the nexus approach, which recognises that demand for water, food and energy is growing rapidly. Given this scenario, only an intersectoral policy that articulates the areas of water, land and agriculture can strengthen regional resilience. The absence of this strategic coordination threatens to cause supply crises, inefficient use of resources and irreversible damage to ecosystems, a risk exacerbated by climate change.

2. Global water consumption: agriculture, industry and technology

The greatest pressure on global water resources undoubtedly comes from agriculture. According to the Food and Agriculture Organisation of the United Nations (FAO), between 70% and 72% of freshwater extracted is used in this sector. In addition, agricultural production consumes around 30% of the world's energy, especially for irrigation, machinery, fertilisation and processing. This demand will continue to grow, both due to population growth and changes in consumption patterns towards more resource-intensive foods.

Industrial water use, although lower in volume, has significant qualitative impacts. In Argentina, approximately 2% of national water consumption is used by industry, and more than 50% of this total corresponds to the food, beverage and chemical sectors. These industries not only consume a lot of water, but also energy, which generates indirect emissions associated with cooling, cleaning and logistics processes.

For its part, the technology sector is playing an increasingly important role. Data centres and digital infrastructure consume more than 560 billion litres of water annually, mainly for server cooling. Added to this are CO₂ emissions due to high electricity consumption, most of which comes from fossil fuels. This intersection between digitalisation and water scarcity represents one of the fastest-growing problem areas, although it is still largely overlooked.

3. The national perspective: water stress and climate change in Argentina

Argentina has a relatively high availability of renewable water resources – around 814 km³ per year – but the effective use of this potential is poorly distributed: 74% of the water extracted is used for agriculture, although only between 5% and 8% of arable land is equipped with irrigation systems. This reveals significant room for improvement in efficiency.

Added to this situation is growing climate pressure. According to the World Bank, extreme weather events – such as droughts and floods – are intensifying, especially in the provinces of Mendoza and Buenos Aires, compromising the availability of groundwater and the viability of production chains.

In Córdoba, these challenges are evident at the local level. The province generates 24% of its regional gross product in the agricultural sector and 14% in the industrial sector. Although the urban water supply reaches 98% of the population, the average consumption per inhabitant – around 292 litres per day – far exceeds the international standard. A critical case is Lake San Roque, the main source of water for the city, which is affected by pollutants due to the lack of modern monitoring and integration of environmental data.

4. Water consumption and emissions: the invisible climate effect

Water use is not only a question of supply or efficiency, it also has a climate dimension. According to the IPCC, water treatment and distribution account for between 3% and 10% of global greenhouse gas emissions – via pumping systems, chemical processes or infrastructure.

Agriculture contributes approximately 13% of global emissions due to the release of methane (livestock), nitrogen oxides (fertilisers) and land use change.

Digital infrastructure – servers, data centres, cloud systems – adds additional emissions due to its high energy consumption, which today accounts for about 0.5% of global emissions. This figure is growing rapidly due to the development of artificial intelligence-based technologies and the training of large-scale linguistic models.

5. Digital solutions: how Kilimo addresses the water-climate nexus

One of the most promising solutions to these challenges comes from Argentina. Kilimo is a company that develops scalable digital platforms for smart irrigation. Its approach integrates satellite imagery, soil analysis, weather forecasts and artificial intelligence to issue accurate irrigation recommendations. Thanks to this technology, it is possible to reduce water and energy consumption by up to 50% without compromising agricultural yields.

A key part of the Kilimo model is its Payment for Ecosystem Services (PES) system. Producers who save water through efficient techniques receive financial compensation, usually from companies committed to reducing their indirect emissions (Scope 3). This logic creates economic incentives for sustainable practices and improves the environmental performance of the entire value chain.

The system operates with auditable mechanisms that allow for the verification of water savings and efficiency improvements, which is essential for financiers, ESG investors, and public institutions. Pilots carried out in Mendoza, Maipo, and Córdoba already demonstrate that the combination of technology, data analysis, and local partnerships is effective.

In addition, Kilimo promotes regenerative agriculture that not only seeks efficiency, but also biodiversity and soil health. Through partnerships with cooperatives, governments, and companies, the model can be easily integrated into existing production systems and generate sustainable and scalable impacts.

6. What is needed now: governance, incentives and regional roadmaps

For innovations such as Kilimo to have a structural impact, a clear political environment, defined economic incentives and strategic regional pilots are required. Córdoba meets the ideal conditions: agricultural weight, growing water pressure and openness to technology.

It is essential to build provincial water governance aligned with SDG 6, which defines responsibilities and coordinates actors. Programmes to promote smart irrigation and sensorisation, linked to universities or innovation centres, could boost specialised technology hubs.

Clear regulations on water prices and usage rights are also needed to internalise environmental costs, including emissions and resource use.

There are also opportunities in the industrial and technological sector: supporting low-water-consumption cooling technologies in data centres and production plants can significantly reduce hidden emissions. It is essential that these projects are structured as models of cross-sector governance, scalable beyond the local context.

Conclusion: it is time to act – the solutions already exist

Argentina, and Córdoba in particular, is at a crossroads. Water scarcity, climate risks and inefficient use of resources require coordinated, technological and urgent responses.

The water-climate nexus is not only a challenge: it is also an opportunity. Digital platforms such as Kilimo demonstrate that efficiency can be combined with ecological responsibility and profitability. The articulation between artificial intelligence, payments for ecosystem services and multisectoral governance opens up new possibilities for politics, the economy and civil society.

If Córdoba takes on a strategic leadership role today, it can become a model region for climate-resilient agriculture and smart water management throughout Latin America.

Sources:

1. United Nations – SDG 6 and the water-climate nexus

• SDG 6 – Clean water and sanitation

Official platform for the UN Sustainable Development Goals

• UN-Water Policy Brief: “Climate change and water” (July 2019)

• UN-Water – Fact sheet: “Water and climate change”

2. FAO – Global statistics on water and energy in agriculture

• AQUASTAT – Methodology and statistics on water use by sector

• FAO technical document: “Energy-Smart Food for People and Climate”

• FAO – Estimates on water use in global digital infrastructure

3. OECD – Water governance and the environment in Argentina

• “Water Governance in Argentina” (2019) – Assessment of national water policies

• “Territorial Review: Córdoba, Argentina” – Review of regional governance

4. World Bank – Water and climate change in Argentina

• “Argentina Water Sector Diagnostic” – Diagnosis of the Argentine water sector

• “Climate Knowledge Portal – Argentina” – Climate data and projections by region

5. United States Government – Argentine agricultural sector

• “Argentina Agriculture Water Technology” – Market report on irrigation infrastructure

6. IPCC – Emissions linked to water and agriculture

• AR6 Report – Working Group III – Chapters on agriculture, fertilisers, land use and indirect emissions

7. Data centres – Water consumption and climate footprint

• MIT Press Essay: ‘The Staggering Ecological Impacts of Computation and the Cloud’

• ASCE Civil Engineering Magazine – Water cooling in data centres

• White & Case Insight (2025) – Regulatory risks from water use in technology infrastructure

Originally published in InfoClima.com.ar

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