13/04/2015 - Rapid population growth, ageing infrastructure and new weather risks are straining the ability of cities in OECD countries to provide clean water and to protect against floods and droughts, according to a new OECD report. Cities will need large-scale investment and more effective tariffs and taxes to pay for upgrades to water systems.
Water and Cities: Ensuring Sustainable Futures finds that city water systems in OECD countries will increasingly struggle with deteriorating plants and pipelines, pollution, and changing weather patterns. It also recognises that rapid urbanisation, with 86% of the OECD population set to be living in cities by 2050, means that urban users, farmers and energy firms will increasingly be draining the same water basins.
The report finds that the need to fit new hardware into decades-old infrastructure so that it can cope with future demands could greatly inflate running expenses and capital spending.
“OECD Cities are entering a new era of uncertainty in terms of water services and security,” said OECD Secretary-General Angel Gurría, launching the report at the 7th World Water Forum in Korea. “We need new ways of financing and managing water. Planning ahead will mean a much lower bill than if we carry on as we are today.” (Read the full speech)
Today’s financing mechanisms cannot cover the cost of upgrading old water systems, due to public budget cuts, a failure to reflect future costs in water charges and a drop in tariff revenues as city dwellers in OECD countries use less water . The report recommends redesigning tariffs and taxes to discourage wasteful or costly practices and seeking new sources of funding from users who generate the biggest costs.
Cities could also improve their management of existing assets. Better water management and coordination between cities and surrounding areas is also vital.
Water and Cities: Ensuring Sustainable Futures gives examples of innovation in water management, based on city case studies and surveys of urban water governance and regulation. For example, Paris and San Francisco use non-potable water for street-cleaning and toilet-flushing, respectively, saving money by not treating all water to drinking standard.
The report recommends that cities:
For further information, or to arrange an interview with an OECD expert, contact Catherine Bremer in the OECD Media Office (+33 1 4524 9700).
An embeddable version of the report is available at: http://www.oecd-ilibrary.org/environment/water-and-cities_9789264230149-en
Read more about the OECD’s work on water:
Other publications being launched at the 7th World Water Forum:
Read the special edition of the OECD Observer on water