A new report from the Global Commission on the Economics of Water (GCEW) warns that inaction on the water crisis could jeopardize over half of the world’s food production by 2050. Nearly 3 billion people currently live in regions where total water storage is projected to decline, raising alarms about the sustainability of global food systems.
The report highlights that the water crisis could lead to an average GDP drop of 8% for high-income countries and as much as 15% for lower-income nations. Disruptions to the water cycle have significant global economic repercussions, driven by changing precipitation patterns, rising temperatures due to climate change, and a lack of access to clean water and sanitation.
To address this critical issue, the report calls for recognizing the water cycle as a “global common good” and urges a transformation in water governance at all levels. It emphasizes the need to eliminate harmful subsidies in water-intensive sectors and redirect resources toward water-saving solutions, especially for vulnerable populations.
Co-chair Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, stated, “The costs of taking action are minor compared to the damage caused by continued inaction.” The report underscores the importance of proper water pricing and incentives to ensure efficient and equitable water use across all sectors.
The findings reveal that current water management strategies have failed to account for the diverse values of water, leading to excessive use and misplacement of water-intensive industries in vulnerable areas. Addressing these issues is not just a necessity for economic stability but also for ensuring food security and human development.
Johan Rockström, Director of the Potsdam Institute for Climate Impact Research, noted, “We are pushing the global water cycle out of balance for the first time in human history.” The report warns that half of the world’s population already faces water scarcity, which threatens food security and overall well-being.
In conclusion, the GCEW report presents both a dire warning and a call to action, urging global leaders to prioritize water management and invest in sustainable solutions to avert a looming crisis that could affect generations to come.