Water is essential to life on Earth – and it supports about 60% of the global GDP. However, we’re facing severe water constraints due to climate change, population growth, and industrial expansion. That could mean a potential 40% shortfall in global water demand by 2030.
A new collaboration between the WEF and McKinsey experts David Gonzalez, Yannig Gourmelon, and Anna Lazarin has developed a framework to help multiple stakeholders address complex water risks. Outlined in Water futures: Mobilizing Multi-Stakeholder Action for Resilience, a key priority is building long-term capacity to anticipate, reduce, accommodate, and recover from future disruptions in water systems. Addressing this challenge will require considerable investment, with projected capital deployment for water security exceeding $13 trillion globally in the next decade.
What does it take to close the funding gap? We also recently published a US-focused report on Water resilience: Closing the funding gap for utilities exploring how state and local water leaders can close the $100 billion funding shortfall in America. By optimizing existing funding sources, prioritizing resilience outcomes, and enabling operational efficiencies, they can ensure their communities have access to this critical natural resource – and provide a viable pathway for others to do the same.
At every level, adopting circular water systems and rethinking water use is essential: Coordinated action at the basin level, involving multi-stakeholder collaboration, breaking down silos, and building trust through transparent data sharing, is paramount. Closer to the tap, state and local leaders can provide the operational, technical, and financial support needed to address these challenges.
By working together, we can transform challenges into opportunities and create a legacy of water resilience, equity, and abundance. Every drop counts in securing a sustainable future.
If you have any questions or would like to learn more about how to bring these recommendations and solutions to life, please don’t hesitate to reach out to us.
Takeaways for leaders: The five approaches for adopting a systems approach to water
- Holistic water valuation through better understanding and incorporation of the value, price, and cost of water.
- Fit-for-purpose financing mechanisms deployed from diverse sources across project stages to mobilize capital.
- Sustained precompetitive basin-level partnerships and collaborative approaches enable a holistic systemwide approach to reinventing water use.
- Adaptive water governance approaches ensure resilience in times of uncertainty while providing the incentive mechanisms required for systemic action
- A collaborative policy-innovation nexus fosters policy that is in sync with innovation needs and progress.