The world is in water bankruptcy, UN scientists warn
The world is facing an unprecedented crisis in water management, one that goes beyond the traditional concept of a "water crisis." According to a new report by the United Nations University Institute for Water, Environment and Health (UNU-INWEH), the planet has entered a new phase—one described as Global Water Bankruptcy. This concept is a stark warning that many of the world’s water systems have been irreparably damaged by years of overuse and pollution. Once abundant rivers, lakes, and aquifers are now failing to meet the needs of both people and ecosystems, and in many regions, these systems are operating in a "post-crisis" state where recovery is no longer possible.
The planet has entered a new phase, one described as Global Water Bankruptcy
The term Water Bankruptcy draws a parallel to financial bankruptcy. Just as a company or individual who has overspent their resources may face insolvency, so too are many water systems now beyond their means. Over decades, societies have drawn more water from natural resources than they can sustainably replenish, depleting both annual renewable flows and non-renewable reserves like groundwater and glaciers. The consequences are far-reaching and irreversible on human time scales; once, viable aquifers are running dry, lakes are shrinking, and wetlands, which once acted as natural buffers for flood and drought, are disappearing at an alarming rate.
The concept of Water Bankruptcy is not simply a call for better crisis management; it is a recognition of a permanent shift in how we must view and govern water resources
What makes this situation even more alarming is the compounded nature of the crisis. Water scarcity is no longer just about low rainfall or seasonal droughts; it is increasingly driven by human actions such as over-extraction, pollution, and poor land-use practices. Wetlands, vital for regulating water flows, have been drained for agriculture and urban expansion, resulting in the loss of valuable ecosystem services. Around the world, aquifers are being pumped beyond their capacity, with dangerous consequences. In some regions, land is sinking due to the depletion of groundwater, while rising salinity and contamination render water sources unusable. Even as global temperatures rise due to climate change, many places are grappling with anthropogenic droughts, long-term, human-induced water shortages that persist even in years of normal rainfall.
The report stresses that the concept of Water Bankruptcy is not simply a call for better crisis management; it is a recognition of a permanent shift in how we must view and govern water resources. No longer can we afford to treat water as an unlimited resource that can be restored after each shock. In many places, previous water baselines no longer exist. The old approach of crisis management, where short-term solutions were put in place to restore the system to its former state, is no longer sufficient. Instead, the world must shift toward bankruptcy management, a new framework that combines mitigation of further damage with long-term adaptation to new hydrological and environmental realities.
Data from the UNU-INWEH report
As this new water reality sets in, water management and governance must reflect the irreversible changes that have already occurred. For example, major glaciers that once acted as natural water storage systems are melting at alarming rates, leaving communities that depend on glacial runoff facing an uncertain future. Similarly, rivers that once flowed year-round are now drying up for parts of the year, and lakes that supported entire ecosystems are now desiccated, unable to provide the water they once did. These losses are not just ecological; they are economic and social. When major water sources dry up, agriculture is disrupted, food prices rise, and livelihoods are threatened.
Nearly three-quarters of the world’s population lives in countries classified as water-insecure or critically water-insecure
One of the report’s key messages is that water insecurity is now a global problem. Nearly three-quarters of the world’s population lives in countries classified as water-insecure or critically water-insecure. In such regions, people face water scarcity for extended periods, while entire ecosystems are collapsing due to the loss of critical freshwater resources. The risks associated with water bankruptcy, such as conflict, displacement, and social unrest, are not just localized; they are interconnected across borders, exacerbating global instability.
The solution to this crisis lies in a shift toward a more integrated approach to water governance. Water is no longer just a sectoral issue that can be tackled within the confines of national borders or specific industries. It is a critical element of global peace and security, and its management must be embedded in international cooperation frameworks. Water can be a powerful catalyst for cooperation between nations, serving as a bridge between conflicting parties, helping to address both environmental and geopolitical issues. As the report emphasises, this is a unique opportunity to use water as a platform for international collaboration to address not just water scarcity, but also broader challenges such as climate change, food security, and social justice.
To respond effectively to the era of Global Water Bankruptcy, the report calls for a new water agenda; one that takes into account the realities of a post-crisis world
To respond effectively to the era of Global Water Bankruptcy, the report calls for a new water agenda; one that takes into account the realities of a post-crisis world. This new agenda must go beyond the narrow focus on water access and sanitation (WASH) and instead aim for comprehensive solutions that address both water quantity and quality, recognising the need for social justice and equity in water distribution. This requires the development of robust governance frameworks, investment in sustainable water infrastructure, and a commitment to policies that protect both water resources and the natural capital that supports them, such as wetlands, aquifers, and glaciers.
The upcoming UN Water Conferences in 2026 and 2028 present an opportunity to set a new course for water governance. These conferences must be seen as pivotal moments to align global priorities with the realities of water bankruptcy and the need for transformative changes. Countries must recognise that managing water in the context of water bankruptcy means admitting that the old ways of managing water are no longer viable. Instead, governments, businesses, and communities must work together to find innovative solutions that can secure water for future generations while protecting the environment and addressing the root causes of the crisis.