“The High Cost of Cheap Water” Report

October 18, 2023

A new report titled “The High Cost of Cheap Water,” released by the World Wide Fund for Nature (WWF) on World Food Day, warns of a mounting global water crisis that endangers $58 trillion in economic value, food security, and sustainability. This staggering figure represents the first-ever annual estimate of the economic value of water and freshwater ecosystems, equivalent to 60% of global gross domestic product (GDP).

Key Findings

Degradation of rivers, lakes, wetlands, and aquifers poses a significant threat to their economic value and their crucial role in sustaining food security, human health, and planetary well-being.
Direct economic benefits derived from water, such as consumption for households, agriculture, and industries, amount to at least $7.5 trillion annually.
Indirect benefits, including water purification, soil health improvement, carbon storage, and protection against extreme floods and droughts, are estimated at approximately $50 trillion annually.
Despite these immense values, the world’s freshwater ecosystems are deteriorating, leading to a growing risk to their economic worth.

Impact on Water Ecosystems

The world has lost a third of its remaining wetlands since 1970.
Freshwater wildlife populations have, on average, declined by 83%, contributing to water shortages, pollution, and dwindling food sources like freshwater fisheries.
The example of Europe’s Danube basin is cited, where 80% of floodplains have been lost, significantly impacting flood and drought risk mitigation, groundwater recharge, and water filtration.

Primary Threats

Unsustainable agricultural practices, including over-extraction of water for crop irrigation and occupation of floodplains by agriculture, pose significant threats to rivers and floodplains.
Agriculture currently accounts for over 70% of freshwater usage globally.
Excessive fertilizer use leads to diffuse pollution affecting surface and groundwater.

Recommendations

To address these challenges, countries should support nature-positive food production and maintain free-flowing rivers for agricultural productivity.
Sustainable land use practices that facilitate natural water retention should be adopted.
Diets that reduce the demand for products straining freshwater resources should be encouraged.
The food industry should embrace sustainability practices to reduce its environmental impact and support freshwater ecosystems.

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