Half of Global Food Production at Risk Due to Water Crisis: Report

The water crisis could jeopardize more than half of the world's food production and cause an average global GDP loss of 8 per cent by 2050, with lower-income countries facing up to a 15 per cent loss, according to a new report.

The report by the Global Commission on the Economics of Water, an international group of leaders and experts, said that weak economic systems, destructive land use, and the persistent mismanagement of water resources, combined with the worsening climate crisis, have placed the global water cycle under unprecedented stress.

"The water crisis threatens more than half of the world's food production by 2050 and could cause an 8 per cent loss of GDP in countries globally, with losses as high as 15 per cent in lower-income nations, alongside even larger economic consequences," the commission said.

Nearly three billion people and over half of the world's food production are located in areas experiencing drying or unstable trends in water availability. Several cities are sinking due to groundwater depletion, the report said.

"Today, half of the world's population faces water scarcity. As this vital resource becomes increasingly scarce, food security and human development are at risk -- and we are allowing this to happen," said Johan Rockström, Director of the Potsdam Institute for Climate Impact Research (PIK) and one of the commission's four co-chairs.

"For the first time in human history, we are pushing the global water cycle out of balance. Precipitation, the source of all freshwater, can no longer be relied upon due to human-caused climate and land use changes, undermining the foundation of human well-being and the global economy," said Rockström.

The report said that current approaches to water management have failed by overlooking the multiple values of water across economies and its role in preserving critical ecosystems.

The underpricing of water globally has encouraged its excessive use and led to the misplacement of water-intensive industries, such as data centres and coal-fired power plants, in areas most vulnerable to water stress.

Proper pricing, subsidies, and other incentives are needed to ensure water is used more efficiently in every sector, equitably across populations, and sustainably in the long term, the report said.

“The global water crisis is a tragedy, but it also presents an opportunity to transform the economics of water. We must start by properly valuing water to recognize its scarcity and the many benefits it provides,” said Ngozi Okonjo-Iweala, Director-General of the World Trade Organization and a co-chair of the commission.

The report also said that current approaches focus primarily on visible water sources, such as rivers, lakes, and aquifers, while neglecting the importance of "green water" – moisture in soils and plant life, which is vital for maintaining stable rainfall patterns and supporting the storage of carbon in the soil.

A stable supply of "green water" is critical for maintaining steady rainfall patterns, which are essential for economies, livelihoods, and mitigating climate change, the report said.