The report offers a very in-depth analysis of the interconnectedness between water and other social and economic domains, pinpointing very effectively several trade-offs that need to be considered when developing water resilience policies.  In particular, 10 “priority emerging issues” that relate social, economic and technological developments are identified and their interconnection is analysed through “5 clusters of change”, namely

Cluster 1: Need for sectoral adjustment

➕ Public and investors’ pressure for sustainability may push industry and agriculture to invest in water efficiency

➖ These policies can affect some sectors’ competitiveness, while some industrial evolutions (such as the shift to a hydrogen-based economy) may challenge local resilience efforts

Cluster 2: New technology, new risks?

➕ Some new technologies (such as desalination and digitalization) can enhance water supply and efficiency

➖ But they come with potential environmental side-effects and poses security risks

Cluster 3: Hydropolitics – a driver of conflict or cooperation

➕ Cross-border cooperation on water governance, and joint basin investments in resilience can strengthen incentives for equitable sharing of water resources and foster regional stability

➖ Growing pressures determined by climate change or national projects compromising cooperation may spark grievances and fuel geopolitical tensions

Cluster 4: Water inequalities and just transitions 

➕ Innovation and private investments in water technologies could accelerate the development of novel solutions to water scarcity

➖ Public-private partnerships enabling aquapreneurs to develop water innovations may fail to ensure equitable distribution, benefiting primarily those who can pay, and making access to clean water a privilege rather than a right

Cluster 5: Water governance – centralised or decentralised system?

➕ Decentralised water technologies could reduce reliance on centralised utilities, potentially enhancing water resilience at the community level 

➖ The technical feasibility this shift towards at household levels remain uncertain, while the high capital intensity and private ownership of decentralised systems may perpetuate socio-economic disparities, challenging equality of access

By analysing the interconnection and feedback effects between political, economic, technological, societal trends and choice,  this report is a valuable support for policy-makers and stakeholders. We definitely recommend reading it! 

You can read the full report here.

Moreover, political, economic, technological and societal issues and trends will have an influence on water use, abstraction and valuation. But we don’t necessarily know which trends have the most beneficial, which ones the most detrimental effect. Modelling (using JRC’s capacities in that regard) is one tool that could be used to sketch out pathways.