UN latest report says we are in a ‘global water bankruptcy’
A recent UN report has declared that the world has entered a phase termed ‘global water bankruptcy.’ This alarming finding indicates that we have surpassed our hydrological capabilities. Terms like ‘water stress’ and ‘water crisis’ no longer adequately capture the severity of the situation.
The UN defines ‘water bankruptcy’ as a state characterised by both insolvency and the irreversible depletion, pollution, and degradation of water-related natural resources.
Key findings from the report include:
- 70% of the world’s major aquifers are experiencing decline.
- Economic losses due to droughts reached approximately US$307 billion in 2022-2023, which is greater than the annual GDP of nearly three-quarters of UN Member States.
- 75% of the global population resides in countries identified as water-insecure or critically water-insecure.
The report emphasises the necessity of viewing water management as an ‘upstream sector’ and highlights that addressing water bankruptcy requires a comprehensive systemic transformation. Some recommended actions include:
- Similar to financial systems, accurate identification of insolvency is essential for any potential recovery.
- Investment strategies should be revamped to safeguard and restore remaining water resources and natural ecosystems.
- Collaboration among public budgets, multilateral development banks, and private investors is crucial to develop investment frameworks that methodically assess investments for risks associated with water bankruptcy.
This call for systemic change underscores the importance of securing funding for water in the next MFF. Recognising water as a strategic asset for Europe, investing proactively rather than focusing solely on mitigation strategies, can yield significant long-term benefits for both society and the environment.
Read the full report here
