The economic value of assets at risk from floods is expected to be about US$45 trillion by 2050, according to a new report issued by the Organisation for Economic Co-operation and Development (“OECD”). The OECD report also asserted that by 2050 more than 40 percent of the world's population will live under severe water stress and nearly 20 percent could be exposed to floods. It observed that water pollution also is increasing, adding to uncertainty about future water availability.
These water risks are exacerbated by climate change, according to the OECD. Governments must manage them so they do not jeopardize growing populations and cities, economic growth, and food or energy security, the OECD contended.
“Instead of just reacting to water crises, governments must assess, target, and manage water risks proactively,” urged OECD secretary-general Angel Gurría. “We have been forewarned – there is no doubt these risks are increasing. We must now arm ourselves with risk management strategies that will prevent water shortages and pollution and protect against the droughts and floods that are endangering human lives, ecosystems and economies.”
OECD's new report Water Security for Better Lives set out a risk-based approach to water security and proposes practical steps to implement it. The report noted that water security is ultimately about establishing an acceptable level of water risk by weighing the costs of improving water security against the expected benefits, and ensuring that responses are proportional to the magnitude of the risk. Flexibility is important, allowing acceptable levels of risk to be adjusted to changing situations. For instance, New York City is reassessing its flood protection level following Hurricane Sandy and investing billions to avoid future disasters, the report observed.
Using this risk-based approach, another new OECD report, Water and Climate Change Adaptation: Policies to Navigate Uncharted Waters, reviewed countries' initiatives to adapt water management to climate change. It revealed that nearly all countries project increasing water risks due to climate change, with extreme events (floods and/or droughts) cited as a primary concern by 32 countries and 23 saying water shortage is a key issue.
About half the countries surveyed noted that climate change impacts on water supply and sanitation are a key concern, with a similar number highlighting concerns about the impacts on water quality. Though countries are building the evidence base to inform decisions about water risks, faced with the impacts of climate change, they should do more to better target and manage them, according to the OECD.
The results of the survey of initiatives by OECD countries to adapt water policies to climate change are available online at: www.oecd.org/env/resources/waterandclimatechange.htm.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].