OECD report a 'stark reminder' of challenges ahead for water management

Europe is well-placed to take advantage of innovations in water infrastructure and technology, says Simon Buckle.

By Simon Buckle

27 Mar 2015

The recent OECD environmental outlook to 2050 provides a stark reminder of the challenges ahead. Global water demand is projected to increase by some 55 per cent. Without new policies, by 2050, over 40 per cent of the expected global population is projected to be living in river basins experiencing severe water stress.

Pressures from water demand in other sectors will limit the scope for increasing irrigation while environmental flows will be contested, putting ecosystems at risks.

"Governments need to better understand the risks that societies face and to develop robust approaches to managing water-related risks"

Groundwater depletion may become the greatest threat to agriculture and urban water supplies in several regions. Nutrient pollution from urban wastewater and agriculture is projected to worsen in most regions.

Despite progress, by 2050, more than 240 million people globally are expected to be without access to an improved water source. And 1.4 billion people are projected to be still without access to basic sanitation. Climate change compounds these challenges, by adding more uncertainty into the equation.

Against this stark background, governments need to better understand the risks that societies face and to develop robust approaches to managing water-related risks. They need to engage with stakeholders to set appropriate levels of water security and to share risks and benefits equitably.

A key component of the policy response is the need for coherent, adaptable and cost effective investment pathways to water security that are catchment, not project, based, and in line with broader economic and social development objectives.

"Europe is also well-placed to take advantage of technical and non-technical innovations in water infrastructure, water demand management, and institutions. Sharing best practices in Europe and beyond will contribute to a water secure world"

Investment pathways need to be backed by sustainable financing strategies, that combine traditional sources of finance (revenues from water tariffs, taxes and transfers from the international community) and innovative ones (land development charges, private equity). As well as investment, this requires institutions and information in order to manage a dynamic system over time.

While European countries face diverse situations, the challenge in Europe is particularly significant because of path dependency and ageing infrastructure, fiscal constraints, and increasing standards and citizens’ expectations regarding water security.

But Europe is also well-placed to take advantage of technical and non-technical innovations in water infrastructure, water demand management, and institutions. Sharing best practices in Europe and beyond will contribute to a water secure world.