Category: Community Education
"No water, no life. No blue, no green. No ocean, no us" ... Sylvia Earle
Freshwater bankruptcy is a state where water systems can no longer be restored to their previous healthier baselines due to over-extraction and pollution. ... United Nations
Ten years ago, I had analysed in detail the situation regarding global water crisis. This feature is encouraged by the recent UN Report on the dire situation of freshwater availability in many regions of the world.
Freshwater is one of the four pillars essential for survival - the others are food, energy and the climate. Humans have adversely impacted all of them - in a big way - and we have been doing this for at least 200 years. In the beginning, developing countries and areas prone to droughts are affected the most, but it is becoming a global problem and all countries will be severely affected.
Freshwater represents one of the many 'nature services' provided to humans free of charge. Nature's ecosystem has enormous ability to repair themselves and reliably supply us with life-sustaining facilities (Appendix 1 presents the hydrological (water) cycle to explain this process). It is estimated that nature ecosystem services are worth $125 trillions annually. The freshwater system, in particular has been most adversely affected and has seen some irreversible damage - for example, depleted & contaminated aquifers, dried wetlands, melted glaciers, land subsidence etc. We have now reached a stage that these systems can never be stored to their baseline condition.
This article discusses some of the issues pertaining to freshwater availability.

The amount of freshwater (2.5% of total) on Earth is fixed. 30% of the freshwater is in the ground - most people use rivers as the source of freshwater but rivers only supply about 2100 km^3, a mere 0.006% of the total freshwater. The slide shows how water is used by different sectors:

The demand of freshwater has been increasing rapidly for several decades - such demand arises from personal use, agriculture and industries. As the human population and living standards increase, more and more water is demanded, and it is understandable that one reaches limits when dealing with a finite resource like freshwater. The slide shows how water usage had increased during the 20th century.
It is worth looking at some numbers projected for water demand in the future. With the world population approaching 10 billion in 2050 and global GDP doubling to 200 trillion US$, it is expected that demand for water-intensive foods such as dairy, eggs and meat will increase significantly. Water demand for manufacturing is also expected to increase by 400% over the year 2000 levels. OECD projects that global freshwater demand in 2050 will be 55% higher than in year 2000 - that is an extra 2000 km^3 of freshwater to be supplied every year.
Many major renewable freshwater resources (rivers) are at their limit to what they can supply - Colorado, Ganges, Nile, Tigris-Euphrates and Yellow River are considered 'closed' - all their annually available renewable freshwater is already committed. How the increased demand in the future will be met?
Scarcity, Stress, Crisis and Bankruptcy - What is the difference? It is common to talk about freshwater scarcity and stress - we have heard these terms often enough, and particularly in the OECD countries these terms do not make a lot of impression about how serious the problem is. To describe the situation as a crisis is more potent - a crisis is an emergency/unstable period that is characterized by high stress, danger and uncertainty - but short term. By proper management and immediate actions, a crisis may be reversed - and this is what humans think they have been doing to solve the global freshwater crisis over the past few decades - unsuccessfully.
What happens if the crisis never ends?
Bankruptcy is more familiar in context of finance and refers to the situation when an individual cannot meet their financial obligations - outgoings cannot be covered by income and savings. The UN Report uses the term water bankruptcy to describe the current global situation, as it is obvious that now we are not able to replace the amount of freshwater that is being used. The income (water from rivers and rainwater) is insufficient to meet the demands. The demands are being met by the withdrawal of ever greater amounts from our savings (groundwater aquifers) that are being depleted at an alarming rate. Important to realise that ground water takes thousands of years to collect and most groundwater sources are replenished at a rate nowhere near to those required to maintain their current levels. Also, the situation is irreversible - once the savings are gone - there will be no way to build them up in a sensible timescale. Freshwater bankruptcy represents the situation when the income (renewable sources - rivers) is inadequate and the savings (depleted groundwater aquifers) cannot be replenished. The world cannot live off the savings (groundwater) to cover the shortfalls - things can keep going for a while, but quietly moving toward collapse. There is no escaping the conundrum - the world is in a 'post-crisis' state of failure-to-manage.
With worsening climate change, weather and rainfall patterns will change around the world - droughts will become more common in some places and floods in others.
Glaciers are Melting: Glaciers store 30% of freshwater and are rapidly melting - these 'water towers' will in a few decades have much reduced flow affecting at least 2 billion people who rely on the rivers funded by meltwater. Even under the 1.5C scenario (considered too optimistic), 50% of the glaciers are expected to disappear by 2100 with peak melting between 2035 and 2050. The loss of glaciers is likely to be much more rapid - a 4C rise will result in 83% of the glaciers disappearing by 2100.
Sea Levels are Rising: Sea levels are rising due to global warming. This causes higher tides and stronger storm surges pushing larger amount of salty sea water inlands into coastal areas.
Saltwater intrusion contaminates coastal aquifers rendering the groundwater unsuitable for drinking and irrigation. Higher sea levels drive saltwater into rivers, estuaries and wetlands damaging freshwater ecosystems and contaminating water sources and weakening infra-structures. A good example is the delta region in Bangladesh where sea level rise is accompanied by the delta region subsidence amplifying such adverse effects. Seawater causes arsenic to leach from minerals. Some 20% of Bangladesh land area has been contaminated with increased salinity and release of arsenic into groundwater aquifers. This has already affected water supply to 78 million people. Miami and other delta regions are already being affected by sea level rise as described here.
Pollution is Increasing: The increasing levels of chemical, nutrient and bacterial contamination of both surface water and groundwater resources is a major driver of global water scarcity. Even if the total volume of water stays constant, pollution reduces the amount of available useful water.
Chemical Pollution: Pesticides, fertilizers, industrial waste, untreated sewage and plastics contaminate the water systems, making the water unsuitable for human consumption or agricultural irrigation. Additionally, nitrogen and phosphorus in fertilizers trigger algal blooms which deplete oxygen levels and kill aquatic life.
Pollutants leach into groundwater aquifers which makes them unusable for human consumption.
Agriculture Has Been Expanding: To feed the increasing population, focused on even better living standards, requires ever-bigger agricultural sector with correspondingly greater demands on freshwater supplies. Globally, this has been highly damaging in many ways.
For example, wetlands (a.k.a. Earth's kidneys) of size of European Union have been drained to create farmland - 35% of global wetlands have been lost during the past 50 years. Wetlands filter water of pollutants - loss of wetlands stops this natural filtration process leading to increased water contamination. Wetlands soak water during wet periods and release it during dry season - their loss makes droughts more severe. Coastal wetlands (mangroves) protect coastal farmlands from storm surges and saltwater intrusions. Wetlands are important breeding grounds for fish and habitats for pollinators. Their loss results in reduced fish, bees/insect populations - essential for agriculture. Loss of wetland undermines agricultural sustainability and food security.
The Aral Sea: Once the fourth largest inland body of water had completely dried out by 2014. Its water was diverted to grow cotton.
Lake Chad: Once one of Africa's largest lakes, it has shrunk by 90% in the last 50 years - from 25000 km^2 in 1963 to 2000 km^2 in 2015 due to reduced rainfall and high population water demand.
Lake Urmia: Has lost 80% of its volume since 1970s. The shrinkage is due to damming of rivers, intensive irrigation, and climate change.
The Dead Sea: The water level in the Dead Sea has been falling by more than one meter per year for the past 50 years due to diversion of the Jordan River and other industrial demands.
Besides increasing demand for freshwater, an important reason for shrinking lakes is climate induced evaporation from their surface.
How to Manage Water Bankruptcy: Before making any decisions about freshwater use, it is important to accept that the world is facing an irreversible, systemic crisis rather than a temporary shortage. We also have to manage water demand within the new reality that less water is available now that in the past.
Put it another way:
(1) We are in deficit: We are now using more water than the amount ecosystem can replace, and
(2) The deficit is getting bigger: Natural systems that supply freshwater have been damaged and continue to be degraded further. It is not possible to supply freshwater at historic levels.
Good, strong and focussed management is required to avoid the dire consequences confronting humanity. Let us discuss what may be possible:
1. Overuse and Wastage: We cannot continue to use water at the current levels. There is too much wastage with insufficient emphasis on efficient use of water.
Agriculture and industry use >90% of freshwater and must provide most of the savings. One can adopt more efficient agricultural practices (flood irrigation is too wasteful), grow less-water-intensive crops, reduce meat consumption (beef production requires 10 to 20 times more water than plant-based grains), minimize food wastage (33 - 40% of food is wasted globally every year).
On the industrial side, much savings may be made by wastewater recycling, adopting water-efficient technologies like smart sensors, air-based cooling and reducing water leaks. Renewable energy generation is much less water intensive than fossil fuel or nuclear power plants - saving up to 95% water requirements. Industries are also very well placed to collect rainwater - as are most house holds. In the urban context, leaking water-supply pipes are a big drain on water resources - the water supply network has long been neglected and must be modernised.
In many areas, water is not priced at its true cost - it is often undervalued and treated as too cheap. Water is widely subsidized for agricultural use in most parts of the world. This results in unnecessary wastage in flood irrigation. While water subsidies are often intended to support food security and rural development, it may no longer be feasible to continue providing them. Growing crops that are less water intensive and better irrigation practices will be helpful.
2. Restore Nature-Based Sources: Almost all freshwater is a gift from the ecosystem to which we have done serious damage. Imperative that we protect and restore ecosystems like wetlands & soil that store and regulate water. Groundwater aquifers are our 'savings' - we need to safeguard them and maintain their levels - only withdraw water that can be replenished on an annual basis. It is possible to track groundwater depletion and water quality in real-time.
RIVERS: Pollution, from agricultural run-off (pesticides, excessive fertilizer use), untreated sewage discharge, industrial (chemicals, heavy metals) and urban & household waste (pharmaceuticals, microplastics, tyre-wear particles), has degraded the quality of water in most rivers.
Rivers tend to follow a natural course - this has been disrupted by building dams, reservoirs, straightening channels. Large scale deforestation has caused soil erosion and the sedimentation clogs up rivers. In most cases, populations downstream now receive very little water (Colorado river often does not even reach the Gulf of California).
It is important to monitor and put strict regulations in place to restore the health of the rivers. It will not be a simple task and big sacrifices in terms of convenience and monetary costs might be needed but will be vital for preventing further degradation of the ecosystem.
3. Political, Social and Ethical Dimensions: Managing water bankruptcy will be a long painful process. Unfortunately, people in developing countries are often affected most severely by water crises and suffer immensely. Developed countries have largely escaped the water scarcity thus far but are beginning to appreciate the worsening situation (see Appendix 2 for situation regarding Colorado River in USA). Water bankruptcy is also best dealt with at the global level to avoid the high probability of future water-wars and exported pollution through rivers etc.
In this context, one needs to protect vulnerable groups like small farms, indigenous people, isolated communities and of course people living in drought-prone areas. Strong political leadership at the global level will be needed to see through progress to solve this urgent problem - by all accounts the problem is only going to get worse in the next few decades. A good reason for being pessimistic is climate change - I discuss this in the next section.
4. Climate Change is the One to Watch: With all the good intentions to manage freshwater bankruptcy, we might be frustrated if climate change is not sensibly addressed. I discuss some of the climate change impacts on freshwater availability.
Extreme Events: Each degree rise in global temperature increases water content of the atmosphere by 7%. Warmer atmosphere is also more stormy and one would expect more intense storms (already evident at 1.5C warming) rather than gentle rain. Higher rainfall intensity will cause more runoff (water ends up in rivers causing flooding and eventually reaching the oceans) instead of percolating into the soil and recharging aquifers. This is bad news as climate change is not being managed properly - things could get much worse. Shifting Weather Patterns: The world is warming but not uniformly over all regions. It would be reasonable to expect that weather patterns will change - areas that received lot of rainfall might experience droughts and the other way round. Also traditionally dry areas may get drier. All this can have severe effects on how/where rivers flow, aquifer recharging, flooding. Consequences for freshwater supply can be unpredictable with uncertain agricultural yields.
Glaciers are Melting Faster: Glaciers hold 69% of the world's freshwater - the melt water provides livelihood for over 2 billion people living downstream in the planes. This is particularly welcome as slow release of water into rivers during the hottest and driest part of the year is vitally important for agriculture.
With rising temperatures, glaciers are melting faster (also there is less snowfall in many areas). Quickly melting glaciers might actually increase river flows for a short period of time - may be a couple of decades - but then melt rates will plummet and lack of freshwater availability will be catastrophic in many ways. Glaciers in Himalayan range, Andes and Alps are all melting faster and share many of the fates described above.
Other undesirable effects of glacier-melt is that water scarcity will cause populations to extract more groundwater leading to overexploitation and potential desertification. Water quality will diminish as reduced flow will concentrate pollutants and in fact release previously buried contaminants. Hydroelectric energy generation will also be impacted adversely.
End Note: this article has addressed issues related to freshwater. It is quite obvious that the ecosystem does not work in isolation - water, food, climate and energy are all intimately related - and all of them are essential for life. Humans have been short-sighted not to understand this and over the past 200 years they have mismanaged and destroyed the gift that nature gave them. We not only face freshwater bankruptcy; climate bankruptcy is not far behind - several of the climate tipping points have already been passed (tipping points are points of no return). Food production is fundamentally dependent on water, climate and energy - total food production could be affected in the next few decades.
Unfortunately, the geopolitical situation appears to be heading in a direction that is not conducive for looking at the solutions in a calm and co-operative manner. It does not bode well for future generations - the concept of sustainability has not survived mankind's ego.
Thanks for reading ...
Appendix 1: The Water (Hydrological) Cycle
Notice that snow/ice on glaciers melts to provide additional surface water (rivers). This is not shown on the diagram.
Appendix 2: Colorado River - A case study
Colorado river water crisis provides a great example of over-exploitation of a natural resource. Colorado river provides water to 40 million people in seven states in Western USA. The overexploitation of the river has reduced reservoir levels to extremely low levels.
There are many recent reports that discuss Colorado River water crisis, and I quote from a September 2025 report:
Consumptive water use in the Colorado River Basin continues to outpace natural
flow. The dwindling reserve stored in reservoirs that has long sustained this shortfall
might soon be exhausted. Immediate steps should be taken to reduce current
consumptive uses in the Upper and Lower Basins ... The entire basin is in agreement that we must balance our water use with the
natural supply. Despite laudable efforts, we are currently not doing so, at least in
part because the hydrology has been unforgiving. Unfortunately, however, this is the
hydrology we must plan for, with the knowledge that the next few years could be
even worse. While inflows and uses during the next year cannot be predicted with
certainty, using the past year as a proxy for the coming year makes for prudent,
conservative planning.
Obviously, developed countries are also not immune to water bankruptcy!