As the global freshwater crisis intensifies, so does the need for more sustainable solutions. Global freshwater demand could exceed available supply by 40% by 2030, and the consequences extend far beyond water availability. It threatens public health, disrupts businesses and economic development, and places pressure on communities and regions who are vulnerable to water scarcity.
As the consequences of climate change become more severe, people, businesses and governments face mounting pressure to adapt. From the direct impacts of water shortages and disrupted operations to rising economic costs and stricter environmental regulations, these pressures are making the need for new solutions increasingly urgent.
Yet could these growing constraints also become powerful catalysts for innovation?
By placing pressure on the resources and systems we depend on, climate change is challenging us to think creatively to establish new ways forward. The necessity to adapt to climate change is therefore becoming one of the strongest drivers of innovation. Water Unite investee Flocean demonstrates how this necessity can inspire new approaches to existing technologies, such as rethinking approaches to freshwater production, to overcome the limitations of traditional desalination.
How the Climate Crisis Is Driving Demand for Innovation
The reality of the climate crisis is becoming a powerful catalyst for technological innovation. Faced with growing environmental, economic and political consequences, societies, governments and businesses are under mounting pressure to adapt.
The growing demand for climate innovation is being driven by two interconnected forces, internal and external pressures.
Internal pressure arises from within an organisation or its own circumstances. As climate change intensifies, businesses are increasingly experiencing water shortages, droughts and disruptions to their operations. These direct consequences create an urgent need to adapt and find more resilient solutions.
External pressure comes from outside an organisation, including governments, investors and regulators. As the effects of climate change become more widespread, these groups are placing greater demands on businesses to respond. Water scarcity is becoming a growing financial risk, threatening operations, supply chains and future growth. According to CDP, companies already report US$397 billion in future impacts, ranging from expected disruption costs and regulatory risks to new capex requirements.
Governments are also making water security a political priority, introducing policies and regulations to encourage more sustainable water management. For example, the EU's Water Resilience Strategy aims to improve water efficiency by at least 10% by 2030, and revised wastewater regulations introduce stricter treatment requirements and energy efficiency objectives.
Consequently, businesses must respond not only to the direct consequences of climate change, but also to the growing expectations and requirements of the world around them. This is creating greater demand for innovative solutions that can address both environmental and economic challenges.
When Constraints Drive Creativity
Together, these pressures are exposing the limitations of existing technologies and infrastructure. These limitations can become binding constraints, which are defined as barriers that restrict further progress unless they are overcome. When established technologies can no longer meet society's needs, innovation becomes a necessity rather than a choice. Without it, we risk further restricting economic growth, societal development and the ability of communities to adapt to changing environmental conditions.
This is where risk and necessity can become powerful drivers of creativity. Climate change is placing growing pressure on the resources we depend on, forcing us to rethink how we use them. As freshwater becomes scarcer, we cannot simply continue extracting more of it. Instead, we must find new ways to meet society's needs while reducing our environmental impact.
In this way, the climate crisis is not only creating demand for innovation, but also changing how we innovate. Rather than simply developing new technologies, we are being challenged to rethink existing solutions and find more efficient, sustainable ways to use the resources already available to us.
Rethinking Desalination
Desalination is a clear example of this challenge. For decades, conventional desalination plants have provided an alternative source of freshwater in regions facing water scarcity. However, the technology comes with significant environmental and economic costs.
Traditional desalination uses powerful pumps to force seawater through specialised membranes that separate salt from water. Generating the high pressure required for this process consumes significant amounts of energy, making desalination expensive to operate and potentially contributing to greenhouse gas emissions, depending on the energy source.
Desalination plants also require substantial coastal infrastructure and produce highly concentrated saltwater, known as brine, as a by-product. When discharged back into the ocean without adequate treatment or dilution, this brine can increase local salinity and harm marine ecosystems, particularly organisms living on the seabed.
As climate change intensifies water scarcity, the demand for desalination is growing. Yet the need to reduce energy consumption, costs and environmental impacts is also imperative.
Water Unite investee Flocean is responding to this challenge by rethinking how an established technology operates. By moving desalination 400-600 metres below the ocean's surface, Flocean harnesses natural water pressure to reduce the energy required to produce freshwater. At these depths, seawater also contains fewer algae and microorganisms, reducing the need for chemical treatment. Furthermore, its process produces less concentrated brine, which can be discharged in deeper waters with lower biological activity, helping to minimise the impact on marine ecosystems.
Flocean’s Climate Innovation in Action
Flocean joined the Water Unite Impact portfolio in 2025, expanding the reach of our Water+ investment thesis into a new frontier of sustainable freshwater production. That same year, the company was recognised as one of TIME's Best Inventions of 2025.
Since then, Flocean has taken an important step towards commercial deployment. In June 2026, its Flocean One system began producing freshwater at industrial scale, operating 500 metres below the ocean's surface off the coast of Mongstad, Norway. Capable of producing up to one million litres of freshwater per day, enough to supply approximately 6,000 households, the system demonstrates the potential of subsea desalination to deliver reliable freshwater at scale. Flocean now has more than 15 projects in development, including partnerships in Norway and the Maldives, and is now working to bring its technology to water-stressed coastal and island communities, as well as industries facing growing water security challenges.
A More Sustainable Future Through Innovation
Flocean demonstrates how necessity can inspire innovation, turning the limitations of conventional desalination into an opportunity to develop a more sustainable alternative. Environmental challenges don’t just create a demand for innovation but they change how we approach established problems. Flocean exemplifies how the growing pressure to adapt to the climate crisis can also become a powerful driver of human creativity and resilience.
While the challenges posed by climate change are significant, it is inspiring to see how they are challenging us to rethink established approaches, redefine what is possible and find new ways forward. As we have explored throughout our investee spotlight series, innovation takes many forms, from rethinking traditional business models to finding new uses for existing technologies.
At Water Unite, we are continually inspired by the ingenuity of innovators like Flocean, who demonstrate how even the most pressing environmental challenges can create opportunities for positive change. We look forward to continuing to discover and support innovative solutions that help build a more sustainable future.