A new study warns that growing water scarcity in England could derail the UK’s efforts to reach net zero, as tensions rise between the government, water companies and regulators. The Environment Agency has already warned that England may face widespread drought next year.
Research by Durham University, funded by water retailer Wave, found that major carbon capture and hydrogen projects—central to the UK’s decarbonisation strategy—may require more water than the country’s future supplies can provide. These technologies could add up to 860 million litres of daily water demand by 2050, potentially pushing regions such as those served by Anglian Water and United Utilities into water deficits as early as 2030.
Water companies argue that regulatory constraints have prevented long-term investment, including reservoir construction, while regulators say companies have failed to plan adequately for industrial demand. Business water needs are often excluded from strategic planning, limiting systems’ resilience to climate change and hindering economic growth.
The government says hydrogen and carbon capture projects must demonstrate sustainable water sourcing before approval and points to major investments in reducing leakage, expanding reservoirs and improving flood defences. However, experts like Oxford economist Dieter Helm argue that England’s water system is poorly managed and needs a digital overhaul, with real-time monitoring and an independent regulator overseeing catchment-wide data.
England is already projected to face a water deficit of 6 billion litres per day by 2055, and officials warn that without significant winter rainfall, drought could hit the country next year.

