The UN University Institute for Water, Environment and Health (UNU-INWEH) has issued a report outlining recommendations for managing “water bankruptcy.” Ahead of the 2026 and 2028 UN Water Conferences, the report calls for a reset of the global water agenda, to prioritize prevention of further irreversible damage, support for communities’ just transitions, transformation of water-intensive sectors, and institutions built for continuous adaptation.

Titled, ‘Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post-Crisis Era,’ the report argues that the world is entering an age of global water bankruptcy, where losses of natural water capital are irreversible and bouncing back to historic baselines is impossible. The report uses the following definition of water bankruptcy:

• persistent over-withdrawal from surface and groundwater relative to renewable inflows and safe levels of depletion; and
• the resulting irreversible or prohibitively costly loss of water-related natural capital.

It finds that many critical systems around the world, interlinked through trade, migration, climate feedbacks, and geopolitical dependencies, have crossed these thresholds, altering the global risk landscape.

The report presents a statistical overview of trends, the overwhelming majority of which are human induced. For example, it highlights that 70% of major aquifers show signs of long-term decline, 75% of people worldwide live in countries classified as water insecure or critically water insecure, and annual value of lost wetland ecosystem services has reached USD 5.1 trillion.

Cautioning against interrupting or damaging the hydrological cycle, the climate, and the underlying natural capital that produces water, the report points to an “untapped, strategic opportunity” presented by water. Unconstrained by traditional political boundaries, water can overcome fragmentation and ignite cooperation by aligning national security with international priorities, according to the report.

The report further finds that targeted investment in water can not only address the immediate concerns of countries and communities, but it can also help mitigate climate change, biodiversity loss, and desertification. It also argues that a renewed global emphasis on water could “re-energize stalled negotiations on the triple planetary crisis.”

The report warns that in focusing on drinking water, sanitation, and incremental efficiency improvements, the current global water agenda is no longer fit for purpose. It calls for a new agenda that:

• Acknowledges the state of water bankruptcy;
• Recognizes water as both a constraint and an opportunity for meeting climate, biodiversity, and land commitments;
• Elevates water in climate, biodiversity, and desertification negotiations, development finance, and peacebuilding processes;
• Embeds water bankruptcy monitoring in global frameworks; and
• Uses water as a catalyst to accelerate cooperation between countries.

It recommends that governments manage water bankruptcy by:

• Preventing further irreversible damage such as wetland loss, destructive groundwater depletion, and uncontrolled pollution;
• Rebalancing rights, claims, and expectations to match degraded carrying capacity;
• Supporting just transitions for communities whose livelihoods must change;
• Transforming water-intensive sectors, including agriculture and industry, through crop shifts, irrigation reforms, and more efficient urban systems; and
• Building institutions for continuous adaptation, with monitoring systems linked to threshold-based management.

Prepared with financial support from Global Affairs Canada, the report was released ahead of the 2026 UN Water Conference High-level Preparatory Meeting in Dakar, Senegal, which took place from 26-27 January. The 2026 UN Water Conference, co-hosted by the United Arab Emirates (UAE) and Senegal, is scheduled to convene in December in the UAE. [Publication: Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post-Crisis Era] [UNU-INWEH News Post] [UN News Story]