Ignoring water crisis could cost global economy, research says

The world is currently in the throes of a water crisis that’s already impacting the health, livelihoods, and economic development of communities — and continuing to ignore it could also cost the global economy trillions, according to new research.

Rivers, lakes, wetlands, and aquifers around the world are becoming depleted as a result of climate change and human exploitation via pollution and extraction. Over the past 50 years, one-third of wetlands have been lost, while freshwater wildlife populations have declined by around 83%. Yet these vital sources of food, water, and livelihoods contribute to the global economy.

A report by the conservation organization World Wide Fund for Nature, or WWF, puts the first annual estimate of the economic value of water and freshwater ecosystems at $58 trillion — the equivalent of 60% of global gross domestic product in 2021. Direct value, an annual $7.5 trillion, is derived from its use in agriculture, industry, and households as well as via inland transport, hydropower, and recreation. But of significantly more value, at $50 trillion annually, is water’s indirect use in storing carbon, mitigating extreme weather events, and sustaining biodiversity, among other things.