WASHINGTON, December 12, 2024—Developing economies in the Europe and Central Asia region must prioritize investments in water security to effectively address the challenges posed by climate change, dwindling resources, and increasing demand, which are vital for the region's sustainable economic growth, according to a new World Bank report titled "A Blueprint for Resilience: Charting the Course for Water Security in Europe and Central Asia”, released today.
The report emphasizes that if no action is taken, surface water availability in parts of the region could decline by half by 2050. At the same time, water demand is projected to increase by up to 51%, driven by socioeconomic development and growing industrial needs. Climate change is expected to have multiple economic impacts, with Central Asia considered one of the most vulnerable regions in the world to future water stress.
“Water security is a prerequisite for development in Europe and Central Asia,” said Sameh Wahba, Regional Director for Sustainable Development at the Europe and Central Asia region in the World Bank. “Our report is a call to action, highlighting the critical need for strategic investments to ensure sufficient quantity and quality of water for people, ecosystems, food and industrial production, while properly mitigating water-related risks."
The report indicates that climate change is likely to escalate the frequency of extreme weather events and significantly impact water availability in the region. Increased intensity and occurrence of flooding, fueled by climate change, could further exacerbate financial losses, currently valued at $64 billion, accounting for 1.7% of regional gross domestic product (GDP), with the highest relative economic exposure found in the South Caucasus.
Aging and inefficient supply networks result in an average loss of approximately 44% of water in Europe and Central Asia, while less than two-thirds of wastewater is collected, and under half undergo treatment. Consequently, substantial investments are essential to increase water availability for consumers, industry, and agriculture. Improving the efficiency of water supply systems is also a vital strategy for climate adaptation, especially given the rising risk of drought in the region due to climate change.
The estimated annual cost of ensuring water security in Europe and Central Asia and to meet the water-related Sustainable Development Goals (SDGs) by 2030 is $77 billion, which averages 0.6% of the region's GDP. Central Asia faces a greater relative financial challenge, requiring 2.2% of its GDP, while the South Caucasus needs 1.3%, and the Danube region requires 0.3%.
To better adapt to these challenges, the report outlines four priority actions designed to enhance water security:
- Improve water-related services through investments in irrigation, water supply, and sanitation coverage.
- Enhance water resource management by strengthening institutional architecture, developing long-term national strategies, creating innovative financing mechanisms, and modernizing information management.
- Mitigate water-related risks through investments in water use efficiency, storage capacity, and flood protection.
- Promote transboundary and regional water cooperation.
The World Bank supports countries in Europe and Central Asia to improve their water security. Through International Development Association (IDA), it is aiding the Kyrgyz Republic, Uzbekistan, and Tajikistan in expanding water access to underserved rural communities. In Georgia, it supports farmers and businesses by enhancing irrigation and land management services. In the Western Balkans, it focuses on improving flood protection and facilitating cross-border water cooperation.
