Futures

Freshwater Crisis: World Risks Depletion by 2040 Amid Soaring Consumption Rates, (from page 20240218.)

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Summary

A report by BofA Global Research warns that the world could run out of freshwater by 2040 if current consumption trends continue. Despite the planet being covered in water, less than 1% is usable, and demand has surged by 40% in the past four decades. Agriculture, particularly meat production, is the largest consumer, while the energy sector accounts for 75% of industrial water use. Half the global population currently experiences high water stress. The economic impact could reach $70 trillion by 2050, with severe declines in GDP in some regions. To avert this crisis, investment in water preservation must quadruple, costing only 1% of global GDP annually until 2030. Solutions include upgrading infrastructure and utilizing technology to reduce waste. The report emphasizes the need for a global goal on water security similar to those for climate change.

Signals

name description change 10-year driving-force relevancy
Freshwater Scarcity Risk The world could run out of freshwater by 2040 due to unsustainable consumption. Shift from abundant freshwater availability to critical scarcity by 2040. In 10 years, water scarcity may trigger global conflicts and economic instability. Hyper consumption in agriculture, industry, and technology is driving unsustainable water use. 5
Virtual Water Trade Growth Virtual water trade is now 400 times bigger than oil, indicating a new economic focus. Transition from oil-centric economies to water-centric economic models. In 10 years, economies may pivot towards water resource management and sustainability. Increasing awareness of water’s value and its essential role in global trade. 4
High Water Stress Impact Half the world’s population experiences high water stress at least one month a year. From manageable water stress to widespread, chronic water shortages by 2050. Chronic water stress may lead to mass migrations and geopolitical tensions over water resources. Population growth and increased water demand exacerbating existing water shortages. 5
Investment in Water Infrastructure Investment in water solutions needs to increase fourfold to address the crisis. Shifting investment focus from traditional sectors to water infrastructure and technology. In 10 years, advanced water management technologies could stabilize supply and reduce waste. Recognition of the urgent need for sustainable water management solutions. 4
Technological Solutions for Water Management Smart meters and AI could enhance water management efficiency. Moving from outdated water management systems to tech-driven solutions. In 10 years, technology could drastically reduce water waste and improve access. Innovation in technology aimed at solving critical resource management issues. 4

Concerns

name description relevancy
Freshwater Scarcity Freshwater resources may run out by 2040 due to hyper consumption and increasing demand, posing risks to human survival. 5
Impact of Agriculture on Water Supply Agriculture, particularly meat production, is causing significant depletion of water reserves, with implications for food security. 4
Economic Consequences of Water Shortages High water stress could expose $70 trillion of global GDP to risks, significantly affecting economies, especially in vulnerable regions. 5
Water-Related Natural Disasters Over-extraction for agriculture is causing earthquakes and other natural disasters, leading to further environmental instability. 4
Aging Infrastructure Much of the water infrastructure is outdated, leading to significant water loss, which exacerbates the water crisis. 4
Increased Competition for Water With rising demand for water, competition among sectors could lead to conflicts and inequitable access to water supplies. 5
Inadequate Investment in Water Solutions Current investment levels are insufficient to address the looming water crisis, requiring a fourfold increase to secure future access. 5
Economic Impact of Water Management Failures Failure to manage water resources effectively could lead to GDP declines and increased insolvencies in affected regions. 4

Behaviors

name description relevancy
Hyper Consumption Awareness Growing recognition of the excessive consumption of resources, particularly water, in daily life and industry. 5
Water Security Mobilization Increased global action towards securing water resources, similar to climate change initiatives, emphasizing the importance of national action plans. 4
Investment in Water Solutions A shift towards significant investments in water preservation technologies and infrastructure as a response to impending water crises. 5
Sustainable Agriculture Practices Emerging focus on reducing water usage in agriculture, particularly in meat production, to mitigate water stress. 4
Technological Innovations in Water Management Adoption of smart technologies, AI, and desalination solutions to improve water efficiency and reduce waste. 5
Public Demand for Retirement Benefits Increasing worker demand for pension plans and retirement savings options over immediate salary increases, reflecting changing financial priorities. 3

Technologies

name description relevancy
Smart Water Management Systems Utilizing AI and smart meters to reduce waste in water management and irrigation processes. 5
Desalination Technology Advanced methods for converting seawater into drinking water, crucial for regions facing freshwater shortages. 5
Virtual Water Trade An emerging market concept where water is traded as a commodity, reflecting its growing scarcity and value. 4

Issues

name description relevancy
Freshwater Scarcity The world risks running out of usable freshwater by 2040 due to hyper consumption and mismanagement. 5
Virtual Water Trade The trade of water is becoming as significant as oil, raising concerns about resource allocation and sustainability. 4
Water-Intensive Industries Sectors like agriculture and technology are major water consumers, exacerbating the water crisis. 4
Economic Impact of Water Stress High water stress could expose $70 trillion of global GDP to risks by 2050, impacting economies significantly. 5
Investment in Water Solutions Investment in water infrastructure and technology is crucial to mitigate the impending water crisis. 5
Global Water Security Goals The need for a coordinated global approach to water security akin to climate change initiatives. 4
Climate Change and Water Climate change exacerbates water scarcity issues, necessitating urgent action and planning. 5
Business Insolvencies Rising business insolvencies are a concern as interest rates increase, indicating economic instability. 3
Public Pension Concerns Growing interest in pension plans among Canadians highlights shifting priorities in financial security. 3