Water security: How to ensure access to water in a changing world

Our relationship with water is changing, with scarcity intensifying due to population growth, urbanization, and rising demand from energy and technological industries. AI-driven data centres alone could increase global water withdrawals by 4.2-6.6 billion m³ by 2027, equivalent to 4-6 times Denmark's annual consumption.

Simultaneously, water availability is declining. Climate change is disrupting precipitation patterns, having reduced water resources by 20% since 1900, and a further 10-40% decrease expected in the coming years. Poor land management and extreme weather events are increasing floods and landslides, severely impacting water infrastructure. These challenges highlight the urgent need for sustainable water resource management.

Economies are increasing investments in water infrastructure. The United States has committed over $100 billion to modernize and enhance systems. Similarly, China launched an ambitious $170 billion plan in 2023, focusing on water conservation and infrastructure projects through 2035. In Europe, significant investment needs are underscored by the European Investment Bank's estimate of €60 billion annually to support infrastructure in water, energy, transport and telecommunications.

These efforts highlight the increasing recognition of water as a critical resource for sustainable development and global resilience. Synergic programmes to address the global water crisis are moving forward driven by a growing number of international and multistakeholder communities creating ideal platforms to formalize partnerships and launch tangible initiatives, setting a precedent for global coordination on water governance and sustainability.

Water security will soon play a defining role in economies’ development potential, serving as an enabler for a level playing field in global economic competition. Solutions should be based on four common levers tailored to each economy's geographic, climatic and morphological context to ensure effectiveness.

A unified governance framework is crucial to address water management challenges effectively, ensuring that expertise and decision-making are consolidated at national and international levels.

For example, in Italy, while the appointment of a Special Commissioner for Water Scarcity represents a step in the right direction, the complexity and urgency of the issue demand the definition of a dedicated Minister of Water. At the European level, the recently appointed Commissioner for Environment, Water Resilience and Competitive Circular Economy coordinates efforts across member states to enhance water resilience.

To maximize impact, integrated planning should unite governments and businesses coordinated by international communities – such as the World Economic Forum, think tanks and more – who play a key role in fostering collaboration in water resource management. This could be strengthened by industrial agreements among water operators in regions sharing similar environmental and infrastructural challenges defining a new model for effective cross-border cooperation.

Addressing the water crisis requires raising awareness, modernizing infrastructure and leveraging innovation.

Public campaigns should highlight water scarcity and promote conservation. Ageing systems need urgent repairs, predictive maintenance and interregional connections to manage droughts and floods. The EU average for water losses is 25% of the total distributed in 2021 with peaks in countries reaching 40-60%.

The differentiation between potable and non-potable uses, rainwater harvesting, basin restoration, desalination and wastewater treatment for reuse in agriculture and industry can ease the demand for potable supplies. A key goal is to achieve “Net Zero Water” by reusing the same litre of water multiple times. Currently, more than half of global water usage is dedicated to agriculture. This sector is particularly vulnerable to climate change and extreme weather events. Using water with higher nutrient content for irrigation can reduce the need for synthetic chemical fertilizers, serving a dual purpose of irrigation and fertilization.

Technology, including AI and robotics, can optimize water management by predicting droughts and monitoring networks.

The regulatory framework should evolve to support a cohesive and industrial-scale approach to water management. Expanding territorial areas to at least a regional scale facilitates the implementation of large-scale supply projects and the efficient optimization of water resources. A common European water policy is essential to encourage the emergence of large-scale operators with the capacity to execute significant infrastructural projects. Currently, fragmentation presents a significant challenge, with many local operators lacking the financial and industrial resources needed to tackle growing complexities. Shifting towards less geographically fragmented management could improve efficiency and optimize resource use.

Ensuring financial adequacy requires an overhaul of the funding mechanism. EU average of water tariffs is €3.2/m³ with values varying between €2.1/m³ and €10/m³ between countries. To address this, introducing national tariffs could help balance the need for increased investments with the goal of maintaining affordability.

Additionally, public and private investments should be aligned with national priorities, with water-related expenditures excluded from the EU Stability Pact estimates. For example, the EU average of annual investments per capita is €82 (2019-2023) with very different values between member states. To address these disparities, targeted financial support should focus on specific sectors, such as encouraging water-efficient technologies in agriculture, promoting “Net Zero Water” usage through reuse and directing funds towards modernizing water infrastructure.

Delivering global water security demands a multi-pronged approach that integrates governance, investments, awareness and innovation. In this context, the international community and multistakeholder events, meetings and partnerships play a pivotal role in acting coordinators to foster collaboration among countries, organizations and stakeholders. By facilitating dialogue and cooperation, they can help align policies and strategies across borders, creating synergies that amplify the impact of individual efforts.

Furthermore, multistakeholder international communities are instrumental in mobilizing financial resources, supporting forward-looking initiatives and advocating for policies that prioritize sustainable water management. Lastly, they can drive global awareness campaigns to highlight the urgency of the water crisis and encourage behavioural changes at all levels, from individual households to industries.

By setting shared goals international communities can unify fragmented efforts and pave the way for a resilient and secure water future.