Measuring the Financial Impact of Inadequate Sewage and Wastewater Management
Unloading the economic and social burdens of neglected wastewater treatments, two new studies published ahead of World Water Day (March 22) call attention to the urgent need for infrastructure improvements in the sector.
First up, a report by Back to Blue and the Ocean Sewage Alliance rings the alarm about the hazardous impacts of untreated sewage on human health, economic growth, and job opportunities. The study singles out countries like Kenya, where only 11% of wastewater is adequately treated, and Brazil, where untreated wastewater imperils food security, exports, and sustainability by causing a $16 billion yearly loss in staple crops like corn and soybeans. India also takes a significant hit, with fishing industries losing over $2 billion due to polluted waterways.
Richard Damania, chief economist of the World Bank's Sustainable Development Practice Group, highlights that the adverse consequences of untreated wastewater are no secret, but these costs aren't typically seen as economic burdens. Damania explains that inadequate sewage systems leave populations at risk of illness and starvation, all while racking up astronomical bills. Essentially, clean water systems are vital for human health, livelihoods, and economic growth.
Investing in competent sewage and wastewater infrastructure is the recommended solution, alongside a push for circularity to repurpose wastewater as organic fertilizer, biogas, or energy sources. A different study by McKinsey & Company provides insights on how water and wastewater utilities in the United States can boost resilience. The report focuses on addressing aging infrastructure, optimizing operational efficiencies, and contending with increasing water demand. It also warns that without necessary funding, the U.S. water sector could face a funding gap of $194 billion by 2030, with over two-thirds of small utilities and 60% of large utilities facing climate-related hazards by the same year.
With unprecedented pressure from every direction, today's water systems and decision-makers are confronted with severe challenges. While extreme drought might be top of mind, water-related risks extend far beyond that. Excessive rainfall and flooding contaminate water resources, making them unsafe for use, and population growth and industrial demands push existing systems to the brink, threatening the clean water supply for millions in the U.S. alone. shrinking access to clean water could have major repercussions for the global economy, as nearly every industry relies on it in some way. As industrial data suggests, water is integral to over 60% of global GDP.
- The alarming impacts of untreated wastewater, including the $16 billion annual loss in staple crops like corn and soybeans in Brazil, are highlighted in a report by Back to Blue and the Ocean Sewage Alliance, emphasizing the risks that the scourge of untreated sewage poses to human health, economic growth, and job opportunities, even on a global scale.
- Inadequate sewage systems not only endanger human health, livelihoods, and economic growth, but also leave populations at risk of illness and starvation, making these issues economically burdensome, as explained by Richard Damania, chief economist of the World Bank's Sustainable Development Practice Group.
- As the McKinsey & Company study points out, water-related risks extend far beyond extreme drought, encompassing excessive rainfall and flooding that contaminate water resources, increasing water demand, and aging infrastructure that could lead to a $194 billion funding gap in the U.S. water sector by 2030, putting millions at risk of shrinking access to clean water, which in turn could have substantial repercussions for the world's GDP, considering that water is essential to over 60% of global GDP.
