Counting The Economic Cost Of Poor Sewage And Waste Water Treatment

The economic and social costs of untreated wastewater and the urgent need to improve the sector’s infrastructure have been highlighted in two new studies, which have been published in the run up to World Water Day (22 March).

The first analysis by ocean health initiative Back to Blue, and the Ocean Sewage Alliance claims untreated sewage has become a “scourge” causing harmful impacts on human health, as well as reduced economic growth and loss of job opportunities.

It also argues there are also indirect impacts such as deterring tourists around polluted beaches and rivers.

And countries that fail to act in treating their sewage will face “cascading impacts will further grow over time”.

The analysis examines wastewater management across five low, middle and high-income countries – Brazil, India, Kenya, the Philippines, and the U.K.

According to the report, as little as 11% of wastewater in Kenya is adequately treated.

In Brazil, the report warns untreated wastewater is leading to decreased yields of staple crops like corn and soybeans.

It adds the South American country, which is the world’s largest exporter of soy and sugarcane loses a $16 billion annually from these crops jeopardising food security, exports, and sustainability.

And it says India faces the highest financial losses from fisheries collapse caused by untreated wastewater with contaminated waterways costing its fisheries sector more than $2 billion.

As a major seafood supplier, untreated wastewater threatens both its domestic food security and export markets.

The chief economist of the sustainable development practice group at the World Bank, Richard Damania saidit is no new revelation that untreated wastewater has serious consequences, but it is not often thought of as an economic burden in a statement.

Damania added 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,” he added.

The report concludes investing in adequate sewage and wastewater infrastructure is the only viable solution.

And it argues policymakers that go beyond just investing in the right infrastructure and instead focus also on circularity, can also ensure wastewater is repurposed as organic fertiliser, biogas, or even a source of renewable energy

A separate analysis was recently published by McKinsey & Company, which looked at how water and wastewater utilities in the United States can become more resilient.

According to the report, some of the key issues are addressing rapidly aging infrastructure, optimizing operational efficiencies, and contending with increasing water demand.

It also warns the U.S. water sector could see a $194 billion funding gap by 2030 and more than two thirds (70%) of small utilities, and 60% of large utilities could face a climate related hazard by 2030.

McKinsey & Company partner Sarah Brody said today’s water systems and decision-makers face unprecedented pressure from nearly every direction in an email.

Brody added extreme drought conditions and not having enough water may be the first thing that jump into the minds of observers when they think of “water issues”, but some of the most urgent questions the industry must answer stem from having too much water.

“Extreme weather and flooding, routinely pollute water to the extent that it is unsafe for use, and population growth and industry demands have pushed existing systems to the brink and threaten the availability of clean water for millions of individuals in the U.S. alone,” she added.

“Moreover, water-related risks present huge consequences for the global economy as well,” said Brody.

“Virtually every industry depends on water to support its operations – from irrigation in agriculture, to cooling in data centers – and is why water is integral to over 60% of global GDP.”