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Pollution from Untreated Water Costs the Global Economy Billions: Report

A report released at the World Ocean Summit by ocean health initiative Back to Blue and the Ocean Sewage Alliance reveals that untreated wastewater has staggering economic and social costs including collapsing fisheries, reducing crop yields and precipitating health crises that cost governments.

Launched at the ocean event in Japan, the study calculates the devastating cost of inaction in wastewater management across five low, middle and high-income countries:  Brazil, India, Kenya, the Philippines, and the UK.

As improperly treated wastewater enters rivers, oceans, and drinking water supplies, the consequences are severe. The report notes that untreated wastewater damages ocean health once it reaches coastal zones via rivers and streams. It negatively impacts marine biodiversity and marine productivity, creating dead zones—areas where oxygen falls to such low levels that most marine life cannot survive, across the globe in developed and developing countries.

“It is no new revelation that untreated wastewater has serious consequences, but it is not often thought of as an economic burden, nor as a burden on health systems, but as an environmental problem,” said Richard Damania, Chief Economist of the Sustainable Develent Practice Group at the World Bank. “Inadequate sewage systems are leaving populations sick and starving, all the while costing the economy billions. Clean water systems are necessary for human health, strengthen livelihoods, and fuel economies.” 

Back to Blue was able to calculate the economic and social costs endured by each sector (agriculture, fisheries and health), in each of the five countries examined. Key findings include:

India faces the highest financial losses from fisheries collapse, with contaminated waterways costing its fisheries sector more than $2 billion. As a major seafood supplier, this threatens both domestic food security and export markets.

Brazil’s agriculture sector suffers the greatest losses, with untreated wastewater leading to decreased yields of staple crops like corn and soybeans. The world’s largest exporter of soy and sugarcane loses a staggering $16 billion annually from these crops jeopardising food security, exports, and sustainability.

The report has also revealed a staggering human toll. Diseases associated with inadequately treated sewage, present a significant health risk resulting in substantial economic losses. While most cases are mild, some can be life-threatening, causing hospitalisations that further strain healthcare systems, incomes and economies. The model indicates India incurs the highest healthcare costs associated with diarrhea from contaminated drinking water. Despite having a higher wastewater treatment rate (20%) than Kenya (11%), nearly three times as many people are affected, leading to costs of $246 million annually.

The organizations suggested policymakers go beyond just investing in the right infrastructure and focus also on circularity to ensure wastewater is repurposed as organic fertilizer, biogas, or even a source of renewable energy.

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