Water Security Challenge
The majority of climate change impacts are experienced through the water cycle – increased uncertainty, reduced predictability, and more severe and frequent extreme hydrological events.
The impact of too much, too little or too dirty water affect all aspects of our economy, from human health, agricultural production and food security, to energy generation and industrial uses, and ecosystem services and biodiversity.
Globally, water scarcity affects a significant portion of the population, with around 4 billion people experiencing it for at least one month annually.
Overallocation of existing surface and groundwater resources to meet growing water needs, exacerbated by increasing climate variability affecting the global and local water cycle, are leading to longer and more intense periods of seasonal water scarcity.
[Source: https://www.unicef.org/wash/water-scarcity]
The global water crisis threatens $58 trillion in economic value, food security and sustainability - equivalent to 60% of global Gross Domestic Product (GDP).
But to achieve universal access to safe water and sanitation by 2030, current investment levels will need to be tripled, as the world faces an annual spending shortfall of between US$131.4 billion and US$140.8 billion. The solution will require a diversity of funding sources, between national budgets, private investments, international development, and climate funds.
[Source: Water crisis threatens $58 trillion in economic value, food security and sustainability | Press Releases | WWF]
At the current rate, the world will not achieve sustainable water management until at least 2049 – 25 years from now.
By 2030, at least 3.3 billion people are unlikely to have effective governance frameworks to balance competing water demands and cope with increasing pressures, including from climate change. Integrated water resources management (IWRM) is pivotal to achieving all the Sustainable Development Goals, none of which will be achievable without it.
[Source: Progress on Implementation of Integrated Water Resources Management – 2024 Update | UN-Water]
The cost of water risks to business could be over five times greater than the cost of taking action now to address those risks.
Not addressing water risk could leave significant private investments stranded due to water scarcity. Changing the focus from reactive to preventative measure has a very high return on investment.
[Source: Cost of water risks to business five times higher than cost of taking action – CDP]
Climate change-related water risks can cost up to $740 billion annually by 2030 in the form of economic losses from agricultural failures, decreased productivity, and infrastructure damage.
Investing in water management and climate resilience strategies can mitigate these losses and improve long-term economic stability.
[Source: gca.org/wp-content/uploads/2019/09/GlobalCommission_Report_FINAL.pdf]