Governing water globally transforms crisis into opportunity through equity and sustainability.
Introduction: Transforming the world’s understanding of the economics of water
The hydrological cycle as a global common good
Towards a new economics of water
Pushing the economics: The case for shaping markets
Innovations to tackle water’s critical mission areas
Partnerships, property rights, and contracts for more water justice
Finance for a just and sustainable water future
The governance of water utilities
Harnessing data as a foundation for action
Opportunities for Just Global Water Governance
Human actions are impacting the global hydrological cycle and freshwater availability around the world.
The growth of consumption and linked changes in land use and pollution are impacting the quantity and quality of freshwater resources. Climate change, deforestation, and loss of biodiversity are mutually reinforcing drivers of shifts that are changing precipitation patterns— the source of all freshwater— and destabilising the hydrological cycle.
Current policy tends to deal with the “blue” water we can see – in rivers, lakes, and aquifers – largely overlooking “green” water – in soil, plants, and forests – that evaporates and transpires into the air, falling downwind as rain.
Green water supplies are far more interdependent than previously thought. Atmospheric moisture flows carry water from one country to another, even across continents and oceans.
We are failing to connect the feedback between land cover and rainfall as a critical component of the global hydrological cycle. Nearly half the rain that falls over land originates from the land through a process of “terrestrial moisture recycling”. Intact ecosystems and lands managed in ways that do not adversely impact their hydrological functioning are critical to securing terrestrial rainfall. A stable supply of green water in soils is also crucial for carbon sequestration.
The hydrological cycle is deeply interlinked with climate change. As global temperature rises, land and oceans respond by evaporating more freshwater, and the hydrological cycle intensifies, leading to more extreme weather events that affect billions of people.
Multiple signs are pointing to a global freshwater crisis. We have transgressed planetary boundaries for global blue and green freshwater. Regional and local scales face multiple crises in terms of water quantity and quality. Combining information on total terrestrial water storage with indicators of water shortage and physical scarcity reveal “hotspots” of particular concern.
We therefore need to:
Reframe the hydrological cycle as a global common good as, i) the hydrological cycle renders countries and communities interdependent regionally and globally; ii) the hydrological cycle is deeply interlinked with the climate and biodiversity crises; iii) water plays a direct or indirect role in achieving all the Sustainable Development Goals.
Value blue and green water for the essential services it provides.
Put absolute limits on the amount of blue water that can be safely and sustainably consumed.
Manage green water in a way that acknowledges the feedback between climate change, land cover change, and precipitation. Conserve, restore, and sustainably use ecosystems – especially rainforests and wetlands – whose evapotranspiration is the source of rain at global scales.
Elevate the role of water in national strategies to mitigate climate change and biodiversity loss.
The Global Commission on the Economics of Water is an independent commission. The co-chairs and the Commissioners each contributed in their personal capacities. The co-chairs took final responsibility for the contents of the Report, while Commissioners contributed actively with substantive inputs and comments. The outputs of the Global Commission (reports, executive summary, infographics, other communication materials) do not necessarily reflect in their entirety the views of the respective Commissioners or those of their respective institutions.