A new report released at the World Ocean Summit in Japan, The scourge of untreated wastewater: The economic, environmental and human costs of inaction, has shed light on the severe economic and social consequences of poor sewage and wastewater treatment. The analysis, written by Economist Impact for Back to Blue, an initiative of Economist Impact and The Nippon Foundation, quantifies the staggering financial burden that inadequate wastewater management places on economies across five low, middle and high-income countries: Brazil, India, Kenya, the Philippines, and the UK.
The report highlights how untreated or poorly treated wastewater is a major driver of pollution and disease, significantly impacting agriculture, fisheries, and public health. In some regions, such as Kenya, only 11% of wastewater is treated, leading to devastating environmental and economic consequences.
Brazil’s agriculture sector is the hardest hit, losing an estimated $16 billion annually due to reduced crop yields caused by contaminated irrigation water. India’s fisheries sector also suffers immensely, facing over $2 billion in losses from polluted waterways, endangering both domestic food security and export markets. Furthermore, India bears the highest healthcare costs related to waterborne illnesses, with diarrheal diseases from contaminated drinking water costing the nation $246 million per year.
"It is no new revelation that untreated wastewater has serious consequences, but it is not often thought of as an economic burden," said Richard Damania, Chief Economist of the Sustainable Development Practice Group at the World Bank. "Inadequate sewage systems are leaving populations sick and starving, all the while costing the economy billions. Clean water systems are necessary for human health, strengthen livelihoods, and fuel economies."
Dr. Amelia Wenger of the Wildlife Conservation Society emphasized the human cost: "It is often the local communities that suffer the most from sewage pollution. Lost wages and expensive medical bills put an enormous strain on families. Yet these financial losses caused by poor infrastructure and failed policies are entirely avoidable."
The report underscores the urgent need for investment in wastewater infrastructure to prevent further economic and human losses. Governments and policymakers are being urged to act swiftly, with solutions ranging from large-scale infrastructure investments to decentralized wastewater systems and innovative waste repurposing strategies, such as using wastewater as organic fertilizer or renewable energy.
With 40% of the world lacking access to safe water, the study serves as a wake-up call for policymakers and stakeholders worldwide. The call to action is clear: investing in proper sewage and wastewater treatment is not just an environmental necessity but a vital economic imperative for a sustainable future.
