Falling groundwater levels, melting glaciers and drying wetlands: a new report highlights that parts of the global water cycle have already been irreparably damaged. In many regions around the world, clean water is already in short supply. Instead of a “water crisis,” we should therefore be talking about a “water bankruptcy,” according to the report. The situation therefore requires “insolvency management” in global cooperation in order to use the remaining resources fairly and safely without causing further damage.
As early as 2022, researchers came to the conclusion that the planetary limit for safe and sustainable water use had been exceeded. So we humans use more water than we actually have available. As a result, we exploit the groundwater reserves so permanently that they can no longer regenerate to their original level. Water pollution further exacerbates the problem. To date, there has often been talk of a “water crisis” in this context – a term that implies that it is a temporary challenge that can be overcome with short-term measures.
From crisis to bankruptcy
A report by the United Nations University (UNU) in Ottawa, prepared under the leadership of the Iranian environmental scientist and former vice president of the UN Environment Program Kaveh Madani, now comes to the conclusion that the term “water bankruptcy” or “water insolvency” is more appropriate in the current situation. “Global water insolvency is defined as a sustained state of failure following a crisis,” the report said. “In this condition, long-term water use and pollution have exceeded renewable inflows and safe withdrawal limits. Important parts of the water system cannot realistically be restored to previous levels of supply and ecosystem function.”
The effects are already serious today. Around 2.2 billion people do not have access to safe drinking water and almost four billion people experience severe water shortages for at least one month of the year. Currently, more than half of the world’s food is produced in regions where water supplies are declining or unstable. “Millions of farmers are trying to grow more and more food while their water sources are shrinking, polluted or disappearing,” says Madani. “Without a rapid transition to water-efficient agriculture, water insolvency will spread rapidly.”
Water cycles out of balance
The overuse of natural resources by humans causes the global water cycles to become out of balance and increasingly lose their ability to regenerate. Today, over half of domestic water consumption and more than 40 percent of water used for irrigation comes from groundwater. As a result, the levels continue to fall and the soil subsides. According to the report, this already affects an area of more than six million square kilometers, almost five percent of the global land area. This limits the capacity of the soil to absorb water. This not only means that groundwater reserves are permanently depleted, but paradoxically also increases the risk of flooding. After heavy rainfall, the water can no longer be sufficiently stored in the ground and therefore leads to flooding.
Other natural water reservoirs are also declining: According to researchers, 410 million hectares of natural wetlands have been lost since the 1970s, which is almost equivalent to the land area of the European Union. Global warming is also causing glaciers to melt, destroying the world’s largest freshwater reserve. “Some mountain ranges are at risk of losing their functioning glaciers within a few decades, threatening water supplies for hundreds of millions of people who rely on rivers fed by glaciers and snowmelt,” the report states.
Paths to safe and fair use
Instead of crisis management, insolvency management is needed, demands Madani. In his view, the conceptual analogy to the world of finance can help to underline the seriousness and irreversibility of the situation and at the same time promote new solution strategies. “The priority is no longer to ‘return to normal’ but to prevent further irreversible damage, rebalance rights and entitlements within weakened carrying capacity, transform water-intensive sectors and development models, and support a just transition for those most affected.”
In Germany, thanks to our geographical location, we currently have so much water available that we usually only use a small part of the natural water reserves. “Nevertheless, we are making a significant contribution to exceeding the planetary limit for freshwater. Because Germany’s water consumption predominantly takes place abroad,” explains Rike Becker from Imperial College London, who was not involved in the report. “By importing so-called ‘virtual water’ in food and industrial goods, we are contributing significantly to the overuse of groundwater-bearing rock layers, high levels of groundwater abstraction and water pollution in other regions.”
In general, the report reveals a great distributive injustice between those who cause and suffer from water insolvency. Small farmers, rural and indigenous communities, as well as low-income urban dwellers and young people are hit hardest. “Water bankruptcy is becoming a driver of fragility, displacement and conflict,” says UN Under-Secretary-General Tshilidzi Marwala, Rector of the UNU. “Fair dealings – ensuring vulnerable communities are protected and unavoidable losses are fairly distributed – are now central to maintaining peace, stability and social cohesion.” Water insolvency can therefore be both a challenge and an opportunity for the global community. “Water can align national priorities with international priorities and improve cooperation between and within nations,” the report says.
Source: Kaveh Madani (United Nations University), doi: 10.53328/INR26KAM001