The world is facing a looming crisis with freshwater, a commodity that is 400 times bigger than oil. According to a report, freshwater could run out by 2040 if consumption rates continue at their current pace. The report highlights that while 75% of the planet is covered with water, less than 1% is usable and is depleting rapidly. The demand for water has increased by 40% over the past 40 years and is projected to increase by another 25% by 2050. The main reasons for water scarcity are hyper consumption in industries such as fast fashion, food, and technology, as well as the heavy water usage in agriculture and the energy sector. Shortages are already visible, with half of the world’s population experiencing high water stress at least one month a year. The economic impact of the water crisis is expected to be significant, with an estimated $70 trillion of global GDP at risk by 2050. To address the crisis, the report suggests investing four times more in preserving the world’s water supply and implementing water-saving technologies such as smart meters and AI in water management. Overall, urgent action is needed to prevent a global water crisis.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Freshwater scarcity crisis predicted by 2040 | Scarcity of freshwater | Increased investment in water preservation, technological advancements in water management and desalination | Hyper consumption and population growth |