Scientists Warn: The Era of Water ‘Bankruptcy’ Has Started for Billions

A new era of “global water bankruptcy” has emerged, with freshwater systems being depleted to the point of no recovery, according to a recent United Nations report.

Approximately three-quarters of the world’s population—around 6.1 billion people—reside in countries where freshwater supplies are either insecure or critically insecure. This alarming statistic comes from a report published on Tuesday by the UN University’s Institute for Water, Environment and Health. Notably, four billion individuals experience severe water scarcity for at least one month each year.

Cities are increasingly facing “Day Zero” events, where municipal water systems are on the brink of collapse. For instance, an acute water shortage in Tehran has prompted Iran’s president to suggest the potential evacuation of parts of the city or even the relocation of the capital. In Turkey, approximately 700 sinkholes—some reaching depths of 100 feet—have formed as aquifers collapse due to drained groundwater.

Drought and water scarcity are anticipated to drive migrations in regions such as Sub-Saharan Africa, South Asia, and Latin America, as highlighted in the report, which is based on a peer-reviewed paper.

Global warming is exacerbating water demands and rendering natural water supplies less predictable. Kaveh Madani, director of the UN institute and lead author of the report, emphasizes that water management is crucial: “Water bankruptcy is not about how much water you have; it’s about how you manage your water.”

Chronic overuse of groundwater, deforestation, land degradation, and pollution have led to irreversible freshwater loss in many regions—issues that climate change further complicates.

Climate change is shifting freshwater availability on a global scale, with local actions intensifying these effects. A hotter, drier planet experiences more droughts that evaporate water, concentrating salts in the soil. Additionally, rising temperatures contribute to increased forest and peatland fires, while human activities like clear-cutting and wetland drainage worsen fire conditions.

“Droughts are no longer just natural but anthropogenic,” Madani notes, highlighting the dual impact of global climate change and local land-use decisions that diminish water availability.

The term “bankruptcy” to describe water depletion is a new addition to UN terminology. Previously, scientists referred to “water stress” or “water crisis,” terms that implied potential recovery. However, in many areas, over-extraction of freshwater has made recovery unfeasible.

Half of the global population relies on stored groundwater, which is being rapidly depleted. Those dependent on surface water are also at risk; a quarter of the population relies on large lakes that have lost half their water since the early 1990s.

The report also highlights that the amount of available water is often overstated due to poor quality. Contaminants such as fertilizers, mining effluents, plastics, and pharmaceuticals continue to pollute rivers, lakes, and coastal waters, while inadequate wastewater treatment practices exacerbate the issue.

To address these challenges, the report calls for recognizing water bankruptcy in policy discussions and establishing a global monitoring framework to track water resources. Governments should consider halting projects that further degrade water supplies.

“Even in years that are wet, we are still struggling,” Madani states, emphasizing the permanent damage inflicted on many systems.

Another paper published this month in Nature predicts worsening crop droughts in much of Europe, northern South America, and western North America, even as significant rainfall events increase. This is due to rising temperatures, which more significantly affect evaporation and soil moisture loss in these regions, leading to greater irrigation demands.

In tropical regions, semi-arid areas are more influenced by precipitation than by temperature-driven evaporation. However, they may also face extreme heat, which increases plant water needs, or intense rainfall that erodes soil.

“Even if agriculture isn’t directly affected by dramatic seasonal droughts, it still faces challenges from extreme weather,” says Emily Black, a professor at the University of Reading and lead author of the Nature study. “Agriculture is a significant water user, so increased demand from plants strains water supplies everywhere.”

The UN report’s release coincides with upcoming meetings in Dakar, Senegal, aimed at laying the groundwork for the 2026 UN Water Conference in December. On January 7, the US announced its withdrawal from UN Water and UN Universities, along with numerous other international organizations deemed contrary to its interests. While this decision has not yet impacted operations, Madani notes that the absence will be felt in Dakar.

Photograph: The Jaguari-Jacarei dam during a drought in Joanopolis, Sao Paulo state, Brazil, on December 12, 2025; photo credit: Nelson Almeida/AFP/Getty Images

Copyright 2026 Bloomberg.

A new era of “global water bankruptcy” has emerged, with freshwater systems being depleted to the point of no recovery, according to a recent United Nations report.

Approximately three-quarters of the world’s population—around 6.1 billion people—reside in countries where freshwater supplies are either insecure or critically insecure. This alarming statistic comes from a report published on Tuesday by the UN University’s Institute for Water, Environment and Health. Notably, four billion individuals experience severe water scarcity for at least one month each year.

Cities are increasingly facing “Day Zero” events, where municipal water systems are on the brink of collapse. For instance, an acute water shortage in Tehran has prompted Iran’s president to suggest the potential evacuation of parts of the city or even the relocation of the capital. In Turkey, approximately 700 sinkholes—some reaching depths of 100 feet—have formed as aquifers collapse due to drained groundwater.

Drought and water scarcity are anticipated to drive migrations in regions such as Sub-Saharan Africa, South Asia, and Latin America, as highlighted in the report, which is based on a peer-reviewed paper.

Global warming is exacerbating water demands and rendering natural water supplies less predictable. Kaveh Madani, director of the UN institute and lead author of the report, emphasizes that water management is crucial: “Water bankruptcy is not about how much water you have; it’s about how you manage your water.”

Chronic overuse of groundwater, deforestation, land degradation, and pollution have led to irreversible freshwater loss in many regions—issues that climate change further complicates.

Climate change is shifting freshwater availability on a global scale, with local actions intensifying these effects. A hotter, drier planet experiences more droughts that evaporate water, concentrating salts in the soil. Additionally, rising temperatures contribute to increased forest and peatland fires, while human activities like clear-cutting and wetland drainage worsen fire conditions.

“Droughts are no longer just natural but anthropogenic,” Madani notes, highlighting the dual impact of global climate change and local land-use decisions that diminish water availability.

The term “bankruptcy” to describe water depletion is a new addition to UN terminology. Previously, scientists referred to “water stress” or “water crisis,” terms that implied potential recovery. However, in many areas, over-extraction of freshwater has made recovery unfeasible.

Half of the global population relies on stored groundwater, which is being rapidly depleted. Those dependent on surface water are also at risk; a quarter of the population relies on large lakes that have lost half their water since the early 1990s.

The report also highlights that the amount of available water is often overstated due to poor quality. Contaminants such as fertilizers, mining effluents, plastics, and pharmaceuticals continue to pollute rivers, lakes, and coastal waters, while inadequate wastewater treatment practices exacerbate the issue.

To address these challenges, the report calls for recognizing water bankruptcy in policy discussions and establishing a global monitoring framework to track water resources. Governments should consider halting projects that further degrade water supplies.

“Even in years that are wet, we are still struggling,” Madani states, emphasizing the permanent damage inflicted on many systems.

Another paper published this month in Nature predicts worsening crop droughts in much of Europe, northern South America, and western North America, even as significant rainfall events increase. This is due to rising temperatures, which more significantly affect evaporation and soil moisture loss in these regions, leading to greater irrigation demands.

In tropical regions, semi-arid areas are more influenced by precipitation than by temperature-driven evaporation. However, they may also face extreme heat, which increases plant water needs, or intense rainfall that erodes soil.

“Even if agriculture isn’t directly affected by dramatic seasonal droughts, it still faces challenges from extreme weather,” says Emily Black, a professor at the University of Reading and lead author of the Nature study. “Agriculture is a significant water user, so increased demand from plants strains water supplies everywhere.”

The UN report’s release coincides with upcoming meetings in Dakar, Senegal, aimed at laying the groundwork for the 2026 UN Water Conference in December. On January 7, the US announced its withdrawal from UN Water and UN Universities, along with numerous other international organizations deemed contrary to its interests. While this decision has not yet impacted operations, Madani notes that the absence will be felt in Dakar.

Photograph: The Jaguari-Jacarei dam during a drought in Joanopolis, Sao Paulo state, Brazil, on December 12, 2025; photo credit: Nelson Almeida/AFP/Getty Images

Copyright 2026 Bloomberg.