The World Bank is calling for widespread use of smart water management to help the world meet longer-term sustainability goals and strengthen resilience to climate change to tackle decreasing water availability, quality and allocation.

In an update on its work on water issues, the Bank says that water is under unprecedented pressures as growing populations and economies demand more of it. Groundwater is being depleted faster than it is being replenished and worsening water quality degrades the environment and adds to costs. Access to safe sanitation and water is still out of reach for 2.5 billion and 780 million people, respectively, leading to thousands of lives lost daily and billions of dollars in economic losses annually, up to 7 percent of gross domestic product (GDP) in some countries. The statistics are expected to worsen because of climate change - where there is ample evidence that climate change will increase hydrologic variability, resulting in extreme weather events such as droughts, floods, and major storms.

A new World Bank report suggests that in a 4°Celsius warmer world, water stress will increase in areas around the world. The roughly 1 billion people living in monsoonal basins and the 500 million people living in deltas are especially vulnerable.

In the Bank’s view, water practices of the past are no longer adequate within this changing physical and socio-economic landscape.

Food, energy and impact of extreme weather events among key challenges

Global water challenges it is flagging up include:

• Food is by far the largest user of water, accounting for almost 70 percent of global withdrawals, 90 percent of global consumptive water use, and up to 95 percent of the withdrawals in developing countries.  By 2050, feeding a planet of 9 billion people will require a doubling of current water inputs to agriculture.
• Over the next 20 years, cities in developing countries will double and so will their demand for water-intensive energy, such as for fuel extraction, cooling water, and hydropower.
• In the past 30 years, economic losses from natural disasters have nearly tripled. Low-income and middle-income countries alone mourned 2.3 million people and suffered a loss of US$1.2 trillion due to damage.
• Extreme weather due to the Earth’s changing climate will worsen the situation by increasing water stress. Experts estimate that by 2080, 43 to 50 percent of the global population will be living in water-scarce countries, compared to 28 percent today.
• At least 2.5 billion and 780 million people remain without access to sanitation and safe water, respectively. With projections of potential decreases in water availability, these statistics could worsen.

The World Bank is one of the key external financiers in water resources management and of the key providers of knowledge and technical assistance on water. It is also the largest multilateral donor for water development with a water portfolio accounting for 15 percent of its overall portfolio. Currently, it is defining a strategic vision for water that builds on the directions outlined in the World Bank 2003 Water Strategy and its 2010 mid-cycle review.

World Bank funding for water resources management amounted to about US$8.0 billion across projects approved during fiscal years 2002-2012. In FY11 as well as FY12, World Bank funding for water resources management amounted to US$1.2 billion.

The Bank collaborates with partners globally, including the UK,  to support innovation in integrated water resources management. The Water Partnership Program (WPP) is a multi-donor trust fund supported by the United Kingdom, the Netherlands and Denmark.

The fund aims to enhance the World Bank's efforts to reduce poverty through improved water resources management and water service delivery. It finances about 40 percent of all Bank analytical work on water and it is currently supporting activities in 55 countries. The WPP's funding has particular emphasis on Africa, gender equality, poverty reduction, as well as the quality of lending operations. The program has entered its second phase, which is largest in size and scope.

Future priorities for the Bank include:

• Strengthen efforts to address climate variability in Bank-financed projects through improved storage, flood control, and emergency response preparedness.
• Devote more resources to exploring and strengthening the linkages between water and other sectors such as energy, agriculture and the environment and to ensuring that water considerations are included in country sectoral planning.
• Increase support for hydropower and seek more opportunities to improve efficiency of water supply systems. Hydropower is currently the world's largest source of affordable renewable low-carbon energy and offers a hedge against energy price fluctuations.
• Ensure that the food security agenda considers irrigation and work with clients to improve water efficiency of existing irrigation schemes.
• Strengthen the use and supply of data for decision making and dialogue between countries, and facilitate the integration of technologies for more reliable information.